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G'day GSJ, Mate, you just OVERPAID by ~$40k !!! You coulda had it for $285k !!! Hehe - the reread was great. I had NO IDEA what I was doing, but just loved the input from many others. In short, it was a HOOT !! And what a lot of learning is there to be had. I still don't own...

Ross, From previous posts:- Ross>> "A truer valuation may be a valuation of around $2,000 psm for a purchase price ..." Les>> Is this my answer to the previous question (perhaps with an excess of zeroes ) Do you mean $200/sqm? (which answers the previous question wrt Shop A)...

G'day Ross, Your comments below, and my responses:- Ross>> "Ignore the entry above. Something went wrong." Les>> The TAB has done this over 3 forum types. The FIRST TAB seems to drop you out of the reply screen. If you use your cursor and left-click back IN the reply, you can...

G'day Mike, You said "Now, why should we pay the vendor $100,000+ extra for a vacant shop? Firstly we have a good quality tenant lined up and the pressure is on to get them a shop." Les>> OK !! Mike>> "We are prepared to wear a 6 month vacancy and even if the good tenant took a...

G'day Ross, Ross has said>> "Shop A is let for $216 psmpa (per square metre per annum) to a National Franchisee. These types of lessees typical screw the owner down to the lowest rent possible which is evidenced by the return on investment of 6.8%. Owner loses. Shop B is let for $225...

"On the other hand, Les is saying the risk of buying the shop untenanted is comparable to the same yield as Shop C is getting with a dodgy tenant ie 14%. So the risk amounts to $135,000. Les is prepared to discount the tenanted value of $319,000 by a whopping 42.3% to get the bid figure of...

Les #2 offer (Bring a packed lunch - this could become "War and Peace") ;) Summary:- Shop A: 74 sq m, Rent $16,000 ($216/sqm), franchisee, sold for $232000 Shop B: 102 sq m, Rent $23,000 ($225/sqm), baker, sold for $255000 Shop C: 140 sq m, Rent $32,000 ($228/sqm), Mr Dodgy, sold...

Hang in there, Lissy - it gets interesting (with thanks to Geoffw for the "out-of-the square" ideas....) Shop D has no tenant - thus "hi-risk" - thus return should be 14% or better. i.e. offer no more than $183000. Given that my prospective tenant will move in within 6 months, paying...

G'day GeoffW, Your thoughts certainly struck a chord with me - reminded me of a Dolf de Roos story wherein he bought a funeral parlour - he only bought it because he ALREADY had a renter. And it was For Sale CHEAP because nobody else had found a tenant !!!!! And your thought of...