What do you think of this. Is this a classic example of problem finding solution?? If I can tenant out second office then wouldn’t the value go up substanually?
details
Rare freestanding masonry investment
* Currently 50% leased to State Government Department
* New 4 yr lease returning $27,500 gross p.a.
* Potential net income $50,000 p.a.
* Potential yield 13%
* Price $385,000sounding good to me, where would I get thefinance for this??
ON those returns I find it over priced as it is.
Byronent
Adelaide SAHi female aged 20
yes if you could get 50k per annum rent it would be a great deal.
to get finance you will need a commercial loan, this usually means that you will need to provide 30-40% of the purchase price, the other thing to be aware of is the interest rates will be higher than residental investment loans.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
When you say “rare”, what are you referring to? Is it heritage listed or something similar?
If so, you will have great difficulty getting substantial finance.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdThere are a number of ways you could finance this investment if you feel it is the right one for you. Remember ofcourse you would still need to lease the remaining part of the premises.
It all depends on how much ownership you want to give up?
That one is best answered by you, but some suggestions would be the normal channels to start some may be willing to underwrite the risk. Possibly venture capital or an Angel investor, but the most likely would be to locate other like minded people interested in the property and possibly undertake a syndicate buy. This lessons your ownership but you would secure the property for a smaller outlay and depending on your syndicate contract buy latter or sell your interest for a profit?
Just some suggestions hope it helps.
Jamie[cap]
Jamie, I would like to meet an angel or venture capitalist that does deals like this.
All the ones I know are very aggressive and demand very high returns. Property is not usually something they like to fund in my experience.
Byronent
Adelaide SA
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