I am wanting to get started in industrial property purchasing and wanted some information on how to start. Looking at the possibility of buying a 2560m sq block and putting two buildings on it. Land cost is $460k. Not sure on how much to build the buildings. I have been told the rental is 75 per sq metre. Total rental would be approx $190k pa. I wonder if the bank uses future income as serviceability and the new buildings would be part of the total security. Would it help getting a loan if I had two tenants lined up ready to move in? Is there such things as private lenders who would lend which may include giving me a higher interest rate for use of there money?
Where are you based? I have recently leased a few Industrial properties on the Gold Coast for around the $90m2 mark.Yes this can help especially if they are national tenants who have committed to an agreement. Would be great to find a national tenant to purpose build for!
what is the fsr? Most likely 0.7:1 so your building area would be 1800m2 @ $600/m2 = $1.08m + $0.460 = $1.54m
Return $75*1800= $135k or 8.7%Melbguru wrote:I am wanting to get started in industrial property purchasing and wanted some information on how to start. Looking at the possibility of buying a 2560m sq block and putting two buildings on it. Land cost is $460k. Not sure on how much to build the buildings. I have been told the rental is 75 per sq metre. Total rental would be approx $190k pa. I wonder if the bank uses future income as serviceability and the new buildings would be part of the total security. Would it help getting a loan if I had two tenants lined up ready to move in? Is there such things as private lenders who would lend which may include giving me a higher interest rate for use of there money?Hi Melbguru,
If you can pre lease the sheds it will make a huge difference in both the valuation you get on the end product and your chances of getting finance. If the property is in Melbourne you have a number of options for financing something like this outside of tghe banking sector, but with the leases in place you could also probably use a bank. Feel free to email me on [email protected] if you would like any more detailed info on funding a project like this, Your options really come down to the specifics of the deal and your personal financial strength, probably not things you want to disucss on an Intenet forum.
Regards
Alistair
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