Hi I’m a newbee on this site but I’ve been around RE for over 40 years, a long time, and used to buy property on a minimum 14% return years ago. I see someone report here that they recently sold a property with 14% return. Hey man call me first please, I haven’t seen one for over 15 years and I’m looking and I’ll buy sight-unseen at that rate.
Banks are paying 3-4% on 2 year fixed savings. A recent report on the ABC LandLine program reported that farmers are earning 3% (if lucky). Residential investments can be as low as 2% (ungeared). I recently looked into a charter boat hire business (10% net). So I’m interested to hear from members what they think they would pay for a fully leased, stable, mixed tenancy, commercial building with 3 to 9 year leases, netting $150,000 per annum. What % would you cap it at today?
And what if you owned it. What rate would you be prepared to let it go for?
Cheers, VandoVando | Surf&Yoga
Email MeExperienced property developer offers passive investment... 9.64% net PA, no gearing.
Our clients who have subscribed to Units within one of our Investment Trusts are getting upto 24% per annum paid monthly.
Many forum members have subscribed and enjoying their monthly payments so whilst I appreciate it difficult to compare apples with apples I know where I am sticking my funds at the moment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard, You didn’t answer my question. However, since you broach the subject, yes apples and pears. Your ‘pears’ because investors who compare “real” property returns with “geared” returns will find their investments could go pear shaped :0. There are strict rules requiring Investment advisers, Investment Funds and Trusts to disclose real returns on property, which means you should also stipulate what gearing you use to achieve your “advertised” rates. Obviously a 75% borrowing on a property returning 7% net will provide a 28% return on capital invested. No offense, I’m a newbie on this site and I thought self promotion was frowned on.
Cheers
VandoVando | Surf&Yoga
Email MeExperienced property developer offers passive investment... 9.64% net PA, no gearing.
Richard’s been around for eons, so shameless self promotion goes with the gig. If he were a first poster, it’d be a different story.
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