I suppose the thing that I am not sure about is … are there buyers out there looking for commercial properties with a return of 8% or 9%?

Ok thanks.

I’ll do that … I’d image that cap rates would be around 8% – 9% … at a a guess.

So that would value if at
9% = $1.94mil
8% = $2.18mil

And at a worst case scenario …
10% = $1.75mil

And best case
7% = $2.5mil

Seeing i’m buying it for $1.6 … it sounds pretty good.

Thanks Michael.

I have the tennant lined up. They are willing to sign for $175k pa + gst + outs

Anyone know what this would put the value of that place at fora reasonably quick sale in the current climate?

I suppose some kind of clarification …. I have an opportunity to buy this empty building for $1.6mil … and put in a tenant on those terms….

I want to sell the building immediately after the tenant moves in… and make profit.

The tenant is secure, and established in different premises and ready to move.

If I do this I want a quick sale……[Read more]

Is that a net or gross lease?
Net. They are paying $175k + gst + outgoings

Do they have any options yet to be exercised?
Yes. I will be selling the property with a brand new 3 + 3 + 3 lease

Is there any hardstand & how much?
about 40 carparks

What sort of construction? How old? What condition?
20 year old. Brick

How much…[Read more]

Very interesting topic

There is no question –

1. End the the first home buyer grant … PLUS
2. Rising interest rates … PLUS
3. Scaling back of government “emergency” policies that induced economic activity ….

EQUALS

Definitely -> More defaulting mortgages
Definitely -> Flat prices
Definitely -> Bargains to be had
Possibly – Real Estate…

Jaleesa wrote:
I get .7% off standard or 0.15% off fixed.

What is the % rate after the discount  Jaleesa?

Well… Humble pie is what i am eating….You were right jonrob and qlds007….I got an answer of  … " Sorry mate there is no room to move"… The IO loan is at rate of 8.56% with no fees…. which is what they advertiseI am excited about this IP though…. it is a ripper

Hi TracyMy beef with the NAB's fees is really not to do with property or mortgages…. it is more to do with my business, which happens to be a very high transaction business….  $15mil turnover with an average sale of $80   =  a lot of individual business transactions = a lot of fees. $15 mil  turnover might give you the impression that I am l…[Read more]

Sorry to slam the bank that you work for jonrob. I do have a tew frustrations with the NAB. The transaction fees are horrendous, and after being with the NAB for 15 years i am sick of these fees…. although the personal service has always been excellent… the NAB has never bounced a cheque on me even when I have been overdrawn…. they have…[Read more]

Thanks blueheeler and LA AussieAny chance at getting your best guess at what the depreciation figure might be? Maybe a "from this" "to this" number?I have absolutly no idea …. and I cant really the the report done until I own the property. Your best educated guess would really help me crunch some numbers.Thanks again