Hi All
I’m looking for +geared property. In appling Steve’s 11 second rule you’ll get a return of 10.4%.
I’ve come across a couple of 8%-9% commercial properties in regional areas. Would they be worth considering?Secondly, would you stucture them with P&I loans or Interest only loans?
John[biggrin][biggrin]
Do some homework regarding comm. properties.
Generally speaking they should give a higher return because they are a bit more risk than a res. property.
If they are in a rural area it may be very hard to get a tenant if it becomes empty.
Every deal needs to be assessed for its individual merits.
Russ.So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
JL,
As Russ said, “every deal needs to be assessed for its individual merits”. This also applies your own individual situation.
Post a little more about your circumstances, and people will be able to advise you a little further about P&I vs IO.
Steve.
“Knowledge is Power”
Do some calculations of the actual costs rather than just the percentages. Commercial properties can have differing outgoings that you pay (because your tenant may pay some of them) – the percentage may not give you a real appreciation of the cost/profit of the property.
CastleDreamer
Hi all
the other thing with commercial properties is you need to do some investigation as to the tenant, as the deal is as much with the lease in place as the actual property. What i mean is, if it is a new business it is a bit more risky as often new business’s go bust. However if it is a well established accountant, for instance, who has been around for 25 yrs perhaps the tenancy/lease is a bit more secure.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
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