I am looking at a positively geared property offered for private sale in a queensland mining town. It fits the 11 second solution (purchase price $100,000 rent $200/wk), but it is on the back of a large block that is zoned commercial. Is this something I should be concerned about? It currently used as a residential rental and has been for at least a year.
Hi Suzette,
Often, changing the nature of a property can be very lucrative. In your case, possibly from residential to commercial or possibly for future development.
I would enquire as to what commercial activity could go there and what sort of rentals they are paying on a square metre basis. The location is important as you would need growth in the area for it to happen.
Some examples I know of are a 3 bdrm house converted to a restaurant, others to dentists, physios, chiropractor, financial services, rental agency, mortgage broker and one demolished and used for LPG storage for a service station.
On the otherside of the coin was a commercial property converted to residential. The building was demolished and 60 apartments built.
So there are opportunities. On the downside the rates could be more expensive.
Cheers
Jeff
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