10% return comm property
- Thread starter negt
- Start date
Ill have 10 please if you find them!
Quality tenants with long leases will generally be between 5-7%.
Decent tenants with 3x3x3 or 5x5 will be 8-9%.
Speculative tenants on any type of lease can be found at 10%+, but high risk.
pinkboy
http://www.investmentportfolioauction.com.au/index.html
Check these auction results of the 'quality tenants'.
The auction results are the previous months sales, the current ones haven't been updated on the site yet, but I have them emailed to me and they are much the same - 4.5%-8% sales.
pinkboy
Check these auction results of the 'quality tenants'.
The auction results are the previous months sales, the current ones haven't been updated on the site yet, but I have them emailed to me and they are much the same - 4.5%-8% sales.
pinkboy
You can't expect these deals to fall into your lap. You have to look hard, do your research, use some business acumen and generate those returns yourself.
Good tenants don't want dogs with fleas. If you have a dog of a property, don't maintain it to a reasonable standard, suffers from obsolescence etc your quality of tenant, ability to pay and the rent will match accordingly.
Do you seriously think that you can get that sort of return without having taken the risk yourself ie bought the dirt, achieved da/cc, built and delivered the product to market?
Yes, those returns are realistic but not available to every punter or Johnny come lately.
Do you seriously think that you can get that sort of return without having taken the risk yourself ie bought the dirt, achieved da/cc, built and delivered the product to market?
Yes, those returns are realistic but not available to every punter or Johnny come lately.
Generally $5 million and over Industrial property in Melbourne will show yields in excess of 8%. 3/991 Mountain Highway Boronia sold on a 9.75% market yield with a new 5 year lease early in 2013 (all details from memory and not exact!).
Of course the property wasn't a prime asset, with increased return comes increased risk.
Of course the property wasn't a prime asset, with increased return comes increased risk.
Yes but at what price range was the purchase?
Just under $1m
Just to clarify was this the whole purchase $1M or JV so just under $1M your share?
Great work Aaron sounds like a great purchase.
But you have to look........
Well done Aaron. Is it retail or office?
If it's the former, yield looks even better.
Several recent sales with close to 10% yields.
http://www.investmentportfolioauction.com.au/recent_auction_sales.html
http://www.investmentportfolioauction.com.au/recent_auction_sales.html
Finally received contract for CIP at 8.8% return with a net rent (except I am still responsible for the exterior of building).
Purchase price $1.07Mil. On a gross bases it's most probably 10%+ return.
Dazz's formula - land is 3500m warehouse is 890m so lots of empty (concreted) land.
Wouldn't call it A grade more like B- to C Grade.
For A grade you will be flat out getting 6-8 % gross
Cheers
Purchase price $1.07Mil. On a gross bases it's most probably 10%+ return.
Dazz's formula - land is 3500m warehouse is 890m so lots of empty (concreted) land.
Wouldn't call it A grade more like B- to C Grade.
For A grade you will be flat out getting 6-8 % gross
Cheers
Is lots of empty land always a good thing? Empty land is not generating a yield?
More opportunities to develop later on.
Does the tenant pay the land tax in NSW as part of the outgoings ?
I am in QLD and land tax is not included in the outgoings and has to be paid by the owner.
You have got a good yield with plenty of land for the future , well done..
Depends on your lease. I have seen many CIP in Qld where the tenant pays Land Tax.
pinkboy