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  • Profile photo of AnionAnion
    Participant
    @anion
    Join Date: 2004
    Post Count: 10
    January 3, 2005 - 2:21 am
    Originally posted by Bonnie:

    Does anyone know roughly how much it will cost to get an architect to draw up plans for 4-5 units/townhouses on a block of land?
    Thanks in advance

    There are a lot of standardized plans that are available for ~500 a unit. Unless the lot is irregular I don’t recommend hiring an architect at all.

    Profile photo of AnionAnion
    Participant
    @anion
    Join Date: 2004
    Post Count: 10
    January 3, 2005 - 2:14 am

    I think retail properties would better suit you. The tenants (ie. pharmacies, McDonalds…) are extremely unlikely to trash the property and are usually a pleasure to deal with.

    Profile photo of AnionAnion
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    @anion
    Join Date: 2004
    Post Count: 10
    January 2, 2005 - 9:50 pm

    If I sell this property at a 5.0% cap rate, I can increase my capital base and acquire a much larger property.

    Profile photo of AnionAnion
    Participant
    @anion
    Join Date: 2004
    Post Count: 10
    January 2, 2005 - 10:24 am
    Originally posted by byronent:

    Why would you want to sell them to the tenants?

    Byronent
    Adelaide SA

    I can make the case to them that owning is cheaper than renting (beacause of the low interest rates). In essesnce I will sell the property for 5.0% cap.

    Profile photo of AnionAnion
    Participant
    @anion
    Join Date: 2004
    Post Count: 10
    December 28, 2004 - 9:16 pm

    I live in Canada. Is that north enough for you?

    Profile photo of AnionAnion
    Participant
    @anion
    Join Date: 2004
    Post Count: 10
    December 28, 2004 - 5:56 am

    Any idea how much value strataing could unlock? Could I make a case to the tenants ownership (with the very low mortgage rates) is cheaper than renting? Many of them have been there for a long time)

    Profile photo of AnionAnion
    Participant
    @anion
    Join Date: 2004
    Post Count: 10
    December 26, 2004 - 10:06 am

    The trap is vacancy. Office properties are extremely cyclical. If the property goes vacant the landlord must pay all expenses out of hi or her pocket and can in some cases be forced to default. Retail properties are considerably more secure. Even with an eight year lease, a tenant can become insolvent and default

Viewing 7 posts - 1 through 7 (of 7 total)