Ok guys say you won the lotto somehow….. you got lucky and won 1 million dollars and got the cash in your hand.
Now how would you go on about investing in the property market? im talking only in the property market and how would you make that 1million into say 5million in 10 yrs?
What strategy would you use? One nice property with good return Or many properties with finance on them?
Commercial office blocks. The highest return property there is.
I know of one million dollar commercial office block returning 20%+ a year
20% of 1Million would be 200k? that can't be possible…….
but correct me if you can.
I agree with the anarchist on this. The top 2 floors of a building I know were just for sale and they went for around 1 mil each. They were guaranteed 7.5% return – not quite 20 but nothing to laugh at.
You would be surprised how much rent you can get out of govt. departments…
So you would buy one property instead of giving small deposits on say 4houses and 1commercial?
Commercial property. With commercial propety max LVR of 70%, but in current climate stick to maybe stick to 50% – so buy $2million of property. Find a property with long term tennants. Do some research on the tennants to make sure they are companies that should survive any recession. This should make it CF+. Hold any extra cash you receive in an offset account. Keep an eye on the economy, whilst building you cash supply any keep an eye out for any new bargains as the economy improves and you are comfortable increasing the LVR above 50%. With any initial or additional purchases keep it CF+
If I had a million to spend on investment property, yes, I would buy a single floor of a building in a place like Woden and get a government tenant in it. Most secure tenant you can have.
Of course, if it could be on any property and didn't have to be an invesment, I would buy a nice rural place with a solid water supply and give up being part of the rat race for good:)
Yes, 20% that is correct.
Actually the double story office blocks where built, The whole thing cost just over 1m and returns about 20%pa, It was built a few years ago though.
Also Industrial property can generate large income, I know of Industrial propertys (Sheds) generating $500+ per week on the same amout of land as a average house block.
Basically I think residential property investment is a bit frivolous, well maybe not frivolous, But medicore. To much worry for too little income. Personally I see residential as basically a entry level into the property game. I think once you owned 2 or 3 residential propertys You should start looking towards commercial.
I would still keep the 2-3 residential propertys though because they are kind of a way of diversifying your property, Commercial I think can be harder to keep rented out in some cases, And I think houses are easier to keep filled, If your left with a empty factory building for 6 months then you will still have income flowing from your residential.
I still think that the property market is "Puke" though
ummester wrote:If I had a million to spend on investment property, yes, I would buy a single floor of a building in a place like Woden and get a government tenant in it. Most secure tenant you can have.Of course, if it could be on any property and didn't have to be an invesment, I would buy a nice rural place with a solid water supply and give up being part of the rat race for good:)
Yes government tennants are good, We have a few government tennats. The Australian apprenticeship people and a government run support service for disabled people rent from us, Also Channel 10, CFM Radio, PJ Burns, some doctors and a few others.
I might consider a neighbourhood shopping centre in a regional location for about $3.3m on a 6-7% net yield. Interest at say 8.5-9% pa (about $200k) offset against rent of $210k.
Alternatively industrial in similar area @ 8-9% (deal would be sweeter again).
Can you give me the numbers for next week's draw THY?
I might consider a neighbourhood shopping centre in a regional location for about $3.3m on a 6-7% net yield. Interest at say 8.5-9% pa (about $200k) offset against rent of $210k.
But thats like just paying interest with no real income ?
I will give you the lotto numbers no problems if i find a way. lol
TheYoungInvestor wrote:But thats like just paying interest with no real income ?I will give you the lotto numbers no problems if i find a way. lol
Find a cheaper centre, use less gearing, find a cheaper source of funds, undertake some refurb/extensions & crank up the rents, find other alternatives eg JV, property syndication (holding the management rights) – there's your options.
Where are my numbers?
what is you aim from making this investment? to be able to leave work immediately/scale back/building for thr future
No For example the aim is……
Over 5 years to be able to pretty much semi retire, and build up even more? like to be able to generate enough income to build even more for future and to live. ?
If you stop working, you will start loosing wealth, No matter if your retired or not, You still have to continue working if you wan't to keep your wealth.
This probably does not make much sense, But it's the truth.
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