Search results

chickens The draw back of some thing like this IMHO, would be what do you do if you lose your tenant?.ie govt changes rules around, breeding or processing that has a significant and detrimental impact on your client, it would appear that you have limited alternative tenants? The other...

Thanks for the pointers Thanks all for trying to keep me on the straight and narrow !! - If the net yield is less than 8%, then i am not interested?.hopefully this helps to reduce the paying through the nose aspect? - Love this point !! Great call, and i tend to agree?.thoughts on where...

Well yes and no... Once i have a net-worth of 1M, then to borrow 2M and buy an income stream like this (at start of 15yr lease) would seem (on the surface to me) to be a good way to lock in a known return. Although i may not wait that long, as it seems as though increasing your income increases...

I would argue that the ability to add another story in downtown melbourne CBD would be tougher, than adding a second story out in the sticks?.so downtown Melbourne would have low ability to build new commercial space?.and hence would be more attractive. (I might be wrong, it might be more...

Diversity Certainly 10 spaces, in 10 different locations of 250m2 each at $300k each, is arguably better than one space of 2500m2 for $3M. 10x the work...but 10x the diversity.....and unlikely to get 10 vacancies at the same time.

SSM / retail obsolesence http://en.wikipedia.org/wiki/Soft_systems_methodology which provides a framework for users to deal with the kind of messy problem situations that lack a formal problem definition.... sadly this diversion wasn't as interesing as first thought it might be.. Good...

Could be so many reasons why some locations remain vacant. 1) Asking too much 2) Poorly advertised 3) Local oversupply 4) Too small, or too big If we could identify a specific reason (such as no toilet for employees)....then that would be a handy item to add to our checklist of + and -...

Solving the vacancy issue 1) Scott, could you please define SSM (do you mean Soft Systems Methodology?) To be transparent, i do not own any commercial property, but i am interested to learn the key criteria. From my observations commercial valuation seems to be strongly linked to the income...

Wale Absolutely agree, and a good tip thank you. WALE = Weighted Average Lease Expiry. if this is zero (i.e. vacant property), then you certainly won't get as many offers as if you have (say) woolworths as 85% of tenancy on 15 years left in a 20 year lease. So strength and length...

Location / Exposure Scotty, thanks for the contribution. Brainstorming location i will arbitrarily define that to be 1) # of people that work within 1km of the business * X 2) # of people that live within 1km of business * Y 3) # of People that pass the business daily * Z. Provided they...

Setting aside the ability to alter the commercial property itself to improve its returns. I'd just like to brainstorm what makes a good investment property. Basics 1) High CAP Rate?or at least high relative to local market 2) High WALE 3) Strength of tenant (e.g. Govt. or multinational)...