I have a friend who is thinking of buying a storage unit,but a bigger industrial type one.Does anyone have any idea of capital gains on an industrial warehouse /storage type property. Residential is obviously around 10% p.a on average but I no idea on this type of property in a sydney.
Any stats would be appreciated
How big?
Commercial Property values are directly related to the rent achieved.
I think from memory it is a ten fold amount.
So if a property is renting for $100,000 then the property value will be around 1 million
Have no idea on the growth of rent in commercial propertyIt's been a long while since I have seen 10% yield on industrial. However 7-8% isn't out of the question normally Some of the investment grade industrial property will sell at 5 or 6% with higher yields for older/less desirable properties eg asbestos roof, poor condition.
Suppose I want to sell my property which was bought 20 years back. Somebody told me that it will be calculated as per valuation of year 1981 and then multiply by 5.8 and today's price will occur…
Kailyn, that's almost as scientific as putting numbers on each step and throwing a coin. I'd hesitate to say it is worth:
$net rental/8% or $net rental/9%.What relevance does a valuation close to 30 years ago have other than for establishing a costbase if you owned it back then.
If the property was bought in 1981 then it's pre capital gains tax.
If it was mine, I wouldn't sell it unless I had a pressing reason.Cheers
Elka
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