Hi all,
Not sure if this is the correct place to post this, but I am looking for an investor who would buy a property for my family to lease in Perth for a fixed 10 year term. Proposed terms below:
THE OFFER
1) Would pay market rental with guaranteed 2% rental increase annually. Monthly rent budget up to $6,000/month.
2) Would contribute $50K upfront for purchase deposit for corresponding %ownership to demonstrate genuine intent for the long term tenancy as well as providing additional security to the investor.
3) Would also consider a new build if investor could derive additonal internal rates of return from building.
THE ASK
1) Property would need to be of high standard in northern suburbs ranging from Trigg Beach to Hillarys up to the Mitchell freeway (i.e. suburbs on coastal side of freeway)
2) Would have first right of refusal for purchase if investor wanted to sell the property.
Flexible on how a proposition could be structured. Professional family on good incomes so let me know if you would like to discuss potential options that may be mutually beneficial.
Thanks
G’day. Out of interest, how much do you think a house that meets your needs, in the areas you indicated, would cost to buy?
Bye,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Steve,
Good point, I neglected to provide an indication of that. I would envisage a property from around $1.1-$1.3 Million. As mentioned in OP, flexible on terms to make a deal work. Would like to work with an investor/investors towards an outcome all parties would be happy with.
Thanks
Taking max rent and max PP, $6k per month rent = $72k per annum, against a purchase price of $1.3m (and that’s before closing costs) gives a gross yield of 5.5%.
As an income return against commercial property, where returns are typically net, this is not particularly attractive.
Still, I have sent your details to a couple of my WA based clients to see if there is any interest in following up.
All the best,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks Steve,
As mentioned, we would be willing to look at what might work on the numbers so what I outlined was a starter for discussion. Also putting $50k into the deposit would provide the investor with more leverage not to mention the guaranteed rent increases. I also think we could reduce many of the costs to the investor like property management fees and property repairs etc. if we were responsible for those for example. As a 10 year tenancy I would expect the relationship would be more mtually aligned. I think there is real scope for something that would make sense on both sides. Better returns and security for the investor and better proposition for us.
Cheers
How big of a property you are expecting? 4×2, with at least 400sqm? House is modern or renovated in the last 10 years?
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