All Topics / Overseas Deals / NZ Commercial – is there interest

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  • Profile photo of Don NicolussiDon Nicolussi
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    @don
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    Hi,

    Trying to gauge interest in commercial property deals in NZ. No Particular deals at this stage but have come across a couple of deals lately that could be of interest at around 15% yield.

    regards
    Don


    Positive Cashflow NZ Property Deals.Email to receive current deals & Free New Zealand Information Sheet [email protected]

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    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Profile photo of Nigel KibelNigel Kibel
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    Hi Don

    Sounds Interesting

    I think it depends on where and what. Cheap commercial deals are only as good as the tennant.

    Certainly worth a review.

    Nigel Kibel

    http://www.propertyknowhow.com.au

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    Profile photo of kiwiduvetkiwiduvet
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    Don

    if you find any 15-20% yileders in the deep south keep me informed of them but with a description of Location and current tenant situation

    when the going gets weird the weird turn pro

    Profile photo of DazzlingDazzling
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    Cheap commercial deals are only as good as the tennant.

    We don’t agree with this. The land component has intrinsic value, regardless of the building and the tenant. A poor tenant is very easily rectified, a small land component is not.

    Having purchased a few commercial properties with purposely absolutely shocking tenants (to buy them cheaply off people with that mindset), it’s amazing what value one can add by kicking them out, cleaning the place up and then attracting a far better tenant.

    Suddenly they aren’t cheap anymore….

    I’m always amazed at the half truths and full on myths espoused about commercial deals…..most of it originated by proponents specialising in residential deals only with little to no experience in comm. deals.

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
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    Clearly not everyone is as smart as you.

    If you are looking at a straight investment that is the case. Not everyone that invests is a wheeler and dealer. I once worked for a commercial property developer and was responsible for putting a number of large deals together and I do deal in commercial today. Many investors are looking for a straight investment. If the economy goes pair shaped commercial property iss the first thing that looses money. In the early 1990s I saw many people loose there life savings who had invested in Commercial Real Estate. Commercial Real estate is riskier than residential and you do need to be more careful in what you invest in.

    Nigel Kibel

    http://www.propertyknowhow.com.au

    Australian and New Zealand The United States Property Researcher and education
    One Day property investment research workshop The United States. Please register your interest

    Nigel Kibel | Property Know How
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    We have just launched a new website join our membership today

    Profile photo of Don NicolussiDon Nicolussi
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    @don
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    Hi Guys,

    We are doing heaps of DD on these deals that are popping up – ie smaller type properties under 300k. Holding off for now as a local developer has a job on converting a park area into an industrial zone on top of all the other commercial development going on so we are not sure what impact this will have on existing premises and what sort of business will relocated etc etc there are a heap of variables in play -there is also the shaky building laws that will impact on older 2 storey dwellings.


    Positive Cashflow NZ Property Deals.Email to receive current deals & Free New Zealand Information Sheet [email protected]

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
    Email Me | Phone Me

    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Profile photo of DazzlingDazzling
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    Nigel…..I’m not sure it’s a case of being smart or not…..else all of the Uni professors would be the richest in the land….and clearly they are not. The wife and I are some of dumbest and least experienced comm. investors around…..but then despite what the guys in suits would have you believe, we don’t think it’s rocket science.

    We consider ourselves to be complete amateurs at this game…..little fish in a big pond so to speak…..I’ve bumped into some big fish swimming these waters though, it’s impressive as they sail on by. I’m always amazed at how someone with a 100 million dollar operation going on seems quite normal. It’s a pity most, if not all of them do not contribute to forums such as these.

    Addressing the “risky” aspect, we’ve found if you choose wisely, work diligently, finance correctly, and attract and select your Lessee prudently…..the “risky” commercial deals can become extremely low risk indeed.

    To throw many 10’s of 1,000’s of differing properties into one pot, to name but a few like warehouses, shops, CBD office blocks, wharves, petrol stations and the corner delis and put a massive aggragate blanket over the lot and call them all “risky” doesn’t help anyone and frightens away new investors.

    Actually…..come to think of it….yes….they are all extremely risky…..wouldn’t touch any of them with a barge pole… [happy3]

    Profile photo of steviebstevieb
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    @stevieb
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    Yes, interested enough to hear about any deals you come up with, like everyone else not prepared to commit with details of the actual deal etc. but certainly prepared to do the DD.

    Cheers

    Profile photo of Don NicolussiDon Nicolussi
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    @don
    Join Date: 2005
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    Hi Stevieb,

    Cool. Can’t really do deals on this forum but I suppose I could post details of some that have been done to get an idea. I have some good resi stuff on the go right now at 10% yields but the commercial stuff is not a done thing and I am still learning quite alot and meeting different people with expertise in this area.

    I could probably post the numbers and let you guys pick them apart as a learning process but if we did that we would have to write off the chance of getting it – who knows.

    cheers


    Positive Cashflow NZ Property Deals.Email to receive current deals & Free New Zealand Information Sheet [email protected]

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
    Email Me | Phone Me

    "I think of finance as a technology, a way of getting things done." Robert Shiller

Viewing 9 posts - 1 through 9 (of 9 total)

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