OK guys I have finsihed my first deal , Paid $1000 depostit $75,000 in total……. 10 week settlement(to find a tenant) and reveiving $750 per month for 5 year lease ( first month free) and it goes up by the cpi every 6 months. It was a 41sqm retail shop and i have leased it to a patio company.
Ok second deal
In the same group there is a block of land (808 sqm) now most residential blocks in this area of this size would be $250,000+…..small 400sqm block fetch 170k-180k…
Now they are only askng $66,000 for this block .
When i enquired they told me that you are only allowed to build on 80sqm of the block.
All the other retails shops in this place are around 40sqm the smallest being 31sqm. But the agent told me that what ever was built there has to look like the other buildings ( i.e. look like something from the 1800's…..)
Does anyone have any idea how to make this profitable.. ( i cant use it as a carpark ) . I was thinking possibly of storage units.. any ideas at all would be appreciated. Thanks alljamiedellam wrote:OK guys I have finsihed my first deal , Paid $1000 depostit $75,000 in total……. 10 week settlement(to find a tenant) and reveiving $750 per month for 5 year lease ( first month free) and it goes up by the cpi every 6 months. It was a 41sqm retail shop and i have leased it to a patio company.you know that leasing out a commercial real estate is completely different than residential real estate ?
I hope you got that in your calculations. I don't get positive cashflow here, especially since you will be paying high monthly service costs for the building that your shop is in. A patio company is a very high risk renter, especially in this climate.jamiedellam wrote:Ok second deal
In the same group there is a block of land (808 sqm) now most residential blocks in this area of this size would be $250,000+…..small 400sqm block fetch 170k-180k…
Now they are only askng $66,000 for this block .
When i enquired they told me that you are only allowed to build on 80sqm of the block.
All the other retails shops in this place are around 40sqm the smallest being 31sqm. But the agent told me that what ever was built there has to look like the other buildings ( i.e. look like something from the 1800's…..)
Does anyone have any idea how to make this profitable.. ( i cant use it as a carpark ) . I was thinking possibly of storage units.. any ideas at all would be appreciated. Thanks all– landbank it, use the negative gear as tax benefits
– can you build a cellar / -1 floor ?
– storage is a good idea, especially with shops nearby.
– boat shed
– car garage ( not carpark , but a garage to park the car in / annex storage space )
– windmill / solar panelsbut probably it's some sort of protected area that won't allow anything else than what the council wants there ( shops ? ).
even with my rental insurance and strata fees, yes it is still positive cashflow.
It is in a historical village , I havent even spoke to the council yet I will be once I get some idea's. Boat shed might be a good idea if the council allows it
Hello JamieIf, as you mentioned in your other thread about this deal, the lease is with outgoings then surely you don't need to pay the insurance and strata fees yourself ? I mean the tenant need to reimburse you for these.
Cheers
Elka
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