All Topics / Commercial Property / Buy into a Perth office deveopment vs industrial factory unit

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  • Profile photo of slowachieverslowachiever
    Participant
    @slowachiever
    Join Date: 2006
    Post Count: 34

    I am in a bit of a quandry which way to go , I already have  2x houses and one factory unit leased out . An opportunity  has arisen for another factory unit well priced in Malaga (Perth ) when calculated for rental return it is about 6% But which doesn't factor in Iwill initially have to pay GST because it is vacant possession.
    $379000.+gst .I would have to pay 40% to keep repayments down on a loan to make it work.

    The office in  the cbd gives 8% , (these are net  but before personal tax of course ),
    The offices have one  carpark bay each that goes with the purchase which in itself is a 9% return .It is a30 year old building completely refurbished to 2010-2011 year standards ,I have had a look in ,each floor has been subdivided with titles and sold off individually, the developer/agent splits up the rent as some tenants have a whole floor leased .And so now separate landlords for various sections .

    There are other office buildings towers etc projects going up in Perth cbd .It is said to be cashflow positive , and have potential future growth  , With a tenant already in place ,so no GST .
    Approx $465000.for the cheapest ones left the rest are over this amount .

    I have about $ 230000 ,cash to spend , or  keep .
    I still owe about $115000 on one house .

    Any opinions appreciated .Thanks .

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Assuming the mining boom continues, Perth office accommodation will be in short supply for several years (something which has been refurbed will always be more attractive as a rental than buildings which haven't).

    You should be able get your gst back when you prepare your next bas. Just get your timing for settlement right ie settle a few days before the end of a reporting period & lodge your claim asap.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Do a SWOT analysis on each – see what it tells you.
    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
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    selling motels in NSW

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