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  • Profile photo of mrtendermrtender
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    @mrtender
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    September 11, 2010 - 7:00 am

    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%?

    Profile photo of mrtendermrtender
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    September 11, 2010 - 6:44 am

    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.

    Profile photo of mrtendermrtender
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    September 11, 2010 - 4:02 am

    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?

    Profile photo of mrtendermrtender
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    September 11, 2010 - 1:58 am

    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… I want them in… and the building sold within a couple of months. Should I do it? Any opinions as to what I could sell the tenanted building for… and for it to sell reasonably quickly? And the market at the moment? Is there a “downside” i should be considering? Risks i am not seeing? What kind of return will an investor want that will ensure a quick sale? I dont want his to drag out…

    Profile photo of mrtendermrtender
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    September 10, 2010 - 11:14 am

    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 office/warehouse/amenities?
    small office. 1 toilet block

    Is that market or above/below market rent?
    Market rent is about $100.m … it is rented at $87.50

    What are the review conditions? & frequency?
    3 years

    What is the zoning?
    Industry

    Is it floodprone?
    No

    Just a general idea as to what you think it would sell for …

    Profile photo of mrtendermrtender
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    January 29, 2010 - 11:24 pm

    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 Crash

    Profile photo of mrtendermrtender
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    March 24, 2008 - 11:08 pm
    Jaleesa wrote:
    I get .7% off standard or 0.15% off fixed.

    What is the % rate after the discount  Jaleesa?

    Profile photo of mrtendermrtender
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    March 23, 2008 - 2:48 am

    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 advertise

    I am excited about this IP though…. it is a ripper

    Profile photo of mrtendermrtender
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    January 25, 2008 - 12:54 pm

    Hi Tracy

    My 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 loaded with $$$$…. but the reality different. I  have a small franchise group, of which I own 1 store and have 10 Franchisees. The industry is high turnover low margin… transaction fees across my group for the 12 months to Sept 2007 = $104863!!!!!!  This is on top of the finance I have pushed to the NAB to finance some equipment purchaces :(

    To be honest i don't even know what interest I am paying on my personal home loan, nor could i tell you what other charges are in there. But now I have a reasonable amount of equity in my house, and my eyes have been opened to the opportunities that intelligent property investment can create, I'm going to work on my bank manager and demand the deal that I deserve, and start making some bold but safe investments.

    Thanks Terryw for the info on Arrears / Advance Interest only.

    I'll let you know how I go on the take it or leave it negotiations :)

    Brent

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    January 21, 2008 - 6:15 am

    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 always honoured it… but charged me plenty for it.

    Thanks for the info on the Arrears / advance thing and the recommendation of the portfolio option

    Profile photo of mrtendermrtender
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    January 17, 2008 - 12:23 am

    Thanks blueheeler and LA Aussie

    Any 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

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