Hi,
I am new to the forum & would like some thoughts on a commercial property that I am aware of. It is returning approx 100K gross and is priced around the 1 million mark. It is currently leased & the leasee has indicated that they would like a 3X3X3 extension. All outgoings are being paid by the leasee but the rates (approx 15K/Yr) are by the owner. It is over 2 titles in an area of potential high capital growth.
Any thoughts/pitfalls??
Cheers
Nilalanicommercial property is a cashflow – you don’t buy it for the capital gains generally.
The higher the return, the greater the risk – is it industrial or office space?Will the selling agent accept a conditional offer based on a new lease?
It is being used as accomodation. I realise commercial properties are generally cashflow, but the location lends itself to a high capital growth. The leasee would like a new long term lease.Always open to peoples, thoughts, good & bad.
your due diligence should uncover if there has been a da lodged by the current tenant or if this is a conforming use. The risk being that the council kicking the tenant out, leaving the building vacant.
Are the capital gains due to the zoning, current use or proposed rezoning?
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