All Topics / Commercial Property / Buy into a Perth office deveopment vs industrial factory unit
I am in a bit of a quandry which way to go , I already have 2x houses and one factory unit leased out . An opportunity has arisen for another factory unit well priced in Malaga (Perth ) when calculated for rental return it is about 6% But which doesn't factor in Iwill initially have to pay GST because it is vacant possession.
$379000.+gst .I would have to pay 40% to keep repayments down on a loan to make it work.The office in the cbd gives 8% , (these are net but before personal tax of course ),
The offices have one carpark bay each that goes with the purchase which in itself is a 9% return .It is a30 year old building completely refurbished to 2010-2011 year standards ,I have had a look in ,each floor has been subdivided with titles and sold off individually, the developer/agent splits up the rent as some tenants have a whole floor leased .And so now separate landlords for various sections .There are other office buildings towers etc projects going up in Perth cbd .It is said to be cashflow positive , and have potential future growth , With a tenant already in place ,so no GST .
Approx $465000.for the cheapest ones left the rest are over this amount .I have about $ 230000 ,cash to spend , or keep .
I still owe about $115000 on one house .Any opinions appreciated .Thanks .
Assuming the mining boom continues, Perth office accommodation will be in short supply for several years (something which has been refurbed will always be more attractive as a rental than buildings which haven't).
You should be able get your gst back when you prepare your next bas. Just get your timing for settlement right ie settle a few days before the end of a reporting period & lodge your claim asap.
Do a SWOT analysis on each – see what it tells you.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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