All Topics / Help Needed! / Possible Buy

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of WafflesWaffles
    Member
    @waffles
    Join Date: 2005
    Post Count: 4
    February 27, 2005 - 8:06 am

    Just wondering if I could get some reassurance from the more experienced investors on this forum.

    Details of this property is as follows:

    Commercial Property – Retail Shop front in growth suburb of city with population of 500K.
    74m2 total area.

    Total income between 25k & 27k
    with total outgoings of $4k per year.
    Price $310,000 and has current tenant.

    Any comments would be appreciated.

    Cheers
    W

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 27, 2005 - 9:33 am

    Waffles numbers appear on the surface to add up.
    If you happy with the location and security of the property then the deal maybe ok.
    Ask yourself if the tennant walked out tomorrow lease or no lease could you easily re-let the premises.
    Also higher the land value high the land tax.

    Cheers Richard
    richard at castlewhite.com.au
    Email me for details of our Qld wrap service.

    Richard Taylor | Australia's leading private lender

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    February 27, 2005 - 9:38 am

    How long is the current lease?

    As already suggested will the lease be able to be renewed easily?

    Cheers,

    Simon Macks
    Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of WafflesWaffles
    Member
    @waffles
    Join Date: 2005
    Post Count: 4
    March 1, 2005 - 11:27 am

    Thanks you for your thoughts.
    Am happy with future prospects of the area.Unsure of the lease though – need to discuss further with agent.

    Thanks again
    W

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618
    March 2, 2005 - 3:18 am

    Is the rent figure including or excluding GST?

    Profile photo of SimonWSimonW
    Member
    @simonw
    Join Date: 2002
    Post Count: 20
    March 4, 2005 - 2:31 pm

    Waffles

    An important point I learned with a commercial shop front……talk to the shopkeeper BEFORE you buy. You will find out a wealth of information about the shop, including how long they are planning to stay, how busy they are and other local gossip!

    A lot of people over look this basic idea and miss out on important information.

    Regards
    Simon

    http://www.lightstation.biz

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150
    March 4, 2005 - 3:34 pm

    Waffles,

    Have you read the lease in full yet ??

    Don’t understand how the rent can float between 25K and 27K, is it dependent on something ??

    Who pays the 4K outgoings ?? If it’s the owner I’d walk away.

    25K – 4K ~ 6.77% nett
    27K – 4K ~ 7.42% nett

    If it’s the tenant, I’d still walk away…

    25K ~ 8.06% nett
    27K ~ 8.71% nett

    There are way higher nett returns out there in the comm market than mid – 8’s.

    My verdict – keep looking.

    Cheers,

    Dazzling

    “Go hard or go home”

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086
    March 4, 2005 - 6:40 pm

    Hi Waffles,

    How did you go with the purchase. Are you any closer on did ya bench it?
    .
    Good Luck

    Don Nicolussi | Property Fan
    Email Me | Phone Me

    Learning, having fun and doing it!

Viewing 8 posts - 1 through 8 (of 8 total)

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