Hi can anybody give me some advice im in victoria.
I have had my eye and heart set on building and finally it is up for sale in just 2 weeks (going to auction). It will be my 1st Commercial and 1st investment purchase (if i over come my fears and grab this oppertunity) but there are a few problems i can see.
The current tenant has just renewed a 4x4yr lease at a very LOW rent in comparison to the surrounding area and in comparison to the selling price but most importantly in comparison to what she is doing with it, she is currently subleasing rooms from the building to other practitioners like myself and making a mint. where if i buy it the re[ayments will not be covered by her rent but if she didnt have a lease everyone would be paying their rent to me which means more rental income therefore decreasing the gap b/w rent and my repayments.
The new 4×4 lease comes with an option to a CPI increase in rent.
My question is if i purchase this building is there any way i can increase the rent although ideally i want to but this building and use the premisis for my own business so how can i get rid of the tenant (or lease a roo to her like she is curreently sub leaseing to me) it was originally being sold vacant but some how this person has renegotiated and now has a lease!!!!
also if i am the new owner how will that work? will i still have to pay her my rent that i am currently paying???
What can i do???
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