All Topics / Commercial Property / Is this a good investment

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of gurjjeetgurjjeet
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    @gurjjeet
    Join Date: 2010
    Post Count: 18
    May 5, 2010 - 8:48 am

    Hi

    I was looking for a positive cash flow property after reading a lot about them onthis website. Although I coundnot find any decent residential property to be cash positive. I found one shop details are

    In a small shopping complex of 30-40 shops. other major shops are IGA, KFC, Dentist & ToyWorld etc.
    Price 110k + gst
    leased for 2 years for $215/week
    Very Close to a Uni, In front of accomodation for uni students & Up-coming suburb which has an approval for a town centre(No retail commercial in the new town center)

    It seems to be too good to be true or is it a standard sort of situation in Commercial property.

    Any comments will appreciated greatly.

    Thanks

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    May 5, 2010 - 1:32 pm

    Is the rent net or gross? Is GST incl/excl?

    Strata shops are always a concern as there is usually no strong central management over the centre thus planning, tenancy mix etc are poorly implemented resulting in high vacancies, difficulty in financing etc.

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970
    May 8, 2010 - 8:47 am

    prefer freehold shop…
    residential upstair
    with the commercial/shop downstair

    Profile photo of Graeme FreerGraeme Freer
    Participant
    @freerenterprise
    Join Date: 2008
    Post Count: 47
    May 16, 2010 - 5:00 am

    Commercial yields are good however riskier investment due to longer vacancies, which can cause grief with cashflow. Student accommodation may be better option for steady casflow positive income, but check that rental blocks aren't merely aligned with uni terms (again you don't want unit vacant during holiday periods). eg. Unilodge in Ultimo grosses around 8% and net return is 5.5%.

    Graeme Freer | Freer Property and Finance
    http://www.freerpropertyandfinance.com
    Email Me | Phone Me

    Buyers Agent

    Profile photo of Investments_R_UsInvestments_R_Us
    Member
    @investments_r_us
    Join Date: 2010
    Post Count: 4
    May 18, 2010 - 12:05 am

    I would say that sounds pretty standard. I would also prefer freehold however.

    Profile photo of OlliOlli
    Member
    @olli
    Join Date: 2010
    Post Count: 17
    May 18, 2010 - 12:16 am

    Also try student accomodation at Ipswich QLD -3brm T/h $292k, rent for around $400pw, new so good depreciation, building completed Nov/Dec 2010 so only deposit to pay until then.

    PM me to get other details

Viewing 6 posts - 1 through 6 (of 6 total)

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