Hi all,
Wow, my first posting. I have for quite a few years now been interested in buying investment property but to date have not done anything. After just finishing Steve’s 2nd book I am excited and eager to finally take the plunge.I have come across an ad for a commercial property whose tenant is a childcare centre. Up until now I have been looking at and researching residential property so do not know much about anything commercial.
I have a few questions from the ad:The ad says Child Care Centre (dual licence) – what does dual licence mean?
Public coy tenant lease 10 + 5 x 5 – I understand that it has a 10yr lease with an option of a further 5 yrs but what does the x 5 mean?
Outgoings paid by tenant – What does the tenant usually have to pay for and what would be my resposibility (I am assuming I would take care of the maintenance of the building, rates, insurance etc)
What questions should I be asking the real estate agent and what further research should I be undertaking?
Thanks for listening and would be greatful for any guidance.
Vonbel
[blush2]
Couple of points:
Should read 10+5+5, being two five year options at the tenants discretion to take up. Ensure there is a mechanism to raise rent included in the lease.
All outgoings should include maintenance and insurance – the lease should specify exactly what.
It is vital you get a copy of the lease before you go further – it is a crucial document. Some even consider that this is what you are buying – the land and buildings are just extras!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
