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Thank you TPFKAD. I must admit that although I dont know you / have never met you - your posts regarding your journey have been a very large inspiration to me to go down this path, and turn thoughts into action. Probably the most inspirational poster on this forum. Thank you - and hope you're...

Absolutely. Unfortunately thats a very, very (very!!) long way away at this stage :-) Oh well, you gotta start somewhere! :rolleyes:

Exactly... One think this search has taught me is that when buying a tenanted CIP you are taking a lease which has been negotiated before you were on the scene. This results in having to think pragmatically. I did pull the plug on a couple of deals which had lease terms which I couldnt live...

Thanks JIT. Correct, that is always a risk. I dont believe it is in this economy, but the last few years have taught us anything can happen - and if there was a severe recession then sure it is a risk. But of course same think could apply to resi (to a lesser degree) as well, as well as...

From my perspective at least, for what its worth, this type of CIP has less risks than resi. I want to be able to live of rents & dividends at some point down the track - and feel that a sole resi strategy is a tough and risky way to achieve this goal. In the greater Melb region at the price...

Exactly. 29 by the way.

Thanks Player - very important point there about ratchet clauses - that slipped my mind.

Sure, I'm no expert on this topic, but did some basic DD on it before I moved on CIP. I believe in a nutshell (happy to be corrected) that any property which is used to provide goods or services to the public and which also has rent approx < $1m pa would be covered under Act. There are...

Depends on the lender in short. Some do term loans but I wanted more peace of mind so used Adelaide bank who offer a commercial product ("smartsuite comemrcial" is the product name i think) over a 25 year term. 3 year initial IO for 75% LVR and 5 year initial IO for 70% LVR. Thereafter P&I but...

Thank you! Probably around 6 months of actually looking in person, asking for leases, contract of sales / s32's, calling tenants, researching comparables, etc... Probably another 12 months before that of (very casually) surfing the web / REA websites on the topic. Good luck!

its prime retail which is very different to industrial and hence to lower yield. In a prime retail strip, heavy foot traffic, and in a botique building which has a few shops and around 5 luxury apartments upstairs with ocean and mountain views for those resi apartments. About 2 blocks to the...

Thanks keithj. Lease is cpi annually and market every 3 yrs at option exercise. Over the long term I'm expecting (conservatively) 3-4 per cent (cpi plus pop growth) but it could be higher as the area is experiencing a lot of growth and is increasing its demographic standing. It needs around...

Thanks BV. I ended up borrowing 75% LVR - initially looked at 70% but ended up at 75% because I had some hassles with the valuer, and valn came back around 4% below purchase price believe it or not (they took a very conservative view on market rent). Lesson learnt - when you are paying for...

No probs - www.realcommercial.com.au - but I found after a while I was starting to get to know various agents locally and could speak with them / look on their specific websites. Im going to retain the sales agent as managing agent (they currently do that too) so should be able to provide...

A bit hesitant to post too many specifics but some general details: > 500k and < $1m purchase price (wanted to buy small to keep impact of any initial mistakes low) Mid 6.x% passing yield (net, + GST + outgoings), 3 x 3 x 3 lease Over-rented actually, but the cap rates for comparables...

Well - after a long time of looking, researching, complaining about awful resi yields, researching, procrastinating, and looking have finally found a decent CIP, and have bitten the bullet and bought it (prime retail) - and settlement isnt too far off. I'm very excited, and now have a...