Search results

$20k/m2 :eek:

Tobe, yields are also a reflection of quality and risk. Would you rather a retail property with a 9% yield but so specialised that there is little utility for other tenants? I could argue that a passing yield of 5% is quite strong (for a cbd property) as this doesn't factor in any capital...

Tobe, how do you come to the conclusion that the OP is paying too much as he hasn't disclosed his turnover? This ratio is inconsequential to the deal except for an occupant.

Analysis of sales - often from sources like the Aust Fin Review, commercial property section of Sydney Morning Herald etc.

If you know how, do a discounted cash flow and determine the net present value. On the expenditure put the purchase price, on the income side, put the monthly rent, then rent reviews and any of the expenses the lease doesn't reimburse (eg interest, land tax, mortgage insurance etc). Tally it up...