7% nett return in Perth still available

[Dazz]

Just surfing and came across this. It caught my eye as a good starter as it's under 1/2 M.


Have no connection to it.....but to someone with bugger all money and wanting something different from the crowd, to maybe dip their toe in unknown waters, in the best industrial suburb in Perth by a long way, you could certainly do worse than this.


http://www.realcommercial.com.au/cg...der=&cc=&c=82608121&s=wa&snf=as&tm=1205217526


Other than that, I know nothing about it. Call up the rep if you want to know more.

It's very similar to the thing we bought initially when we started out.

 

[kph]

Nice.
Sold as a going concern so whats with the gst??
And its a resi agent who can't spell to0 well who is handling the sale.
May be an opportunity to low ball him...
Yields back up to 7% on Comm in Perth ? I thought they were down around 4% ???

kp

 

[Dazz]

Dunno Kev about the GST.....the going concern bit is a bit line ball, as there is not tenant or Lease in place prior to settlement.

Legally dunno how that goes, as the Lease would commence on settlement day. I reckon you could tick the second option on the GST form.....i.e. apply for the GST exemption as a going concern. If not, you pay it and six months later get it back. No biggy. Just go for a dance around the ATO circuit.

Rent is the normal (nett + GST + outgoings) so that's reasonable.

CPI or 5% whichever is greater is OK for an escalation clause.

So nett rental yield would go :

Year 1 @ 7.00%
Year 2 @ 7.35%
Option Year 1 @ 7.71%
Option Year 2 @ 8.10%

Doesn't set the world on fire by any stretch.....but I've seen worse. Would equate to about 10% yield if grossed up and compared to a house.

The best thing it's 256sqm NLA in the best industrial suburb of Perth....thereby guaranteeing future strong demand from tenants.

 

[grossreal]

hi all
if the owner is the tennant and is then going to lease back it is a going concern but it is a gst supply because at the time of purchase there was no rent being paid by the tennant.
I have had this argument before with regards to gst and was told that it is gst when I buy it but if I then sold it it with the new lease in place then it would be gst exempt.
and before you say what if you signe dthe lease before you bought.
can't if the owner and the tennat is the same entity.
I have to jiggly the gst issue all the time.
heres one for you with regards to gst.
if the property is gst exempt and is sold as a going concern but you take an option and the option forms part of the purchase.
so 500 purchase and 50 option with remainder of 450 to be paid in say 12 months
is the option gst or not
ie do you pay 5k on the 50 option.
answer yes
but when you buy the property
the option now forms part of the purchase and you can claim it back.
just a funny thing about the ato.
with regards to the property
its does not come into my radar but as learning property I think its a good deal.
in 4 years off the lease the property has increased by 188k so about 50k per year and for some thing to learn on that would be fine.
don't know the area but I take it dazzling does and I don't go for industrial units I'm a floor plate person.
but you can get a 50sq at 210k on 21k per annum on a 5% cbd sydney.
with dazzlings one you have to know the area and will the area move up as well as the growth of the lease( as the lease growth is your min not your max growth)
I know the growth cycle for the cbd's so yes the property would get the thumbs up if you wanted to start your investing in this type of comm product and you would find alot worse then it.
my .002

 

[Lacasa]

Looks like it may have been sold or remove when I follow the link.

the best industrial suburb in Perth by a long way,

Dazzling, which suburb was the property in?

Lacasa

 

[Dazz]

Lacasa,

The Vendor promptly removed the property from the market when he realised that the price / yield he was offering was too good to be true.....it does happen sometimes. It took him a day to wake up and realise he was diddling himself.

Osborne Park is selling currently for about 4.5 or 5% nett yield....and why not too, it's growth prospects are great. That's still about 7% gross, better than most housing.

He listed it with a residential agent out in whoop whoop who had no clue of the market in Ozzy Park.

One day was all you had.....and the window closed the next day. Nothing like an ill informed Seller if you can latch on.....but then you need to ;

1. Know what you are looking at, and realise a bargain when you see it.
2. Be ready to jump. Umming and arrhhing don't cut it.
3. Jump.

Looks like the buying market was either asleep on this one.....or people are finding much better deals that they are pursuing.

 

[Lacasa]

Cheers for that Dazzling, I thought it might be Ozzy Park. I have a couple of places in Innaloo and have seen how busy Ozzy Park gets.

Lacasa

 

[Ausprop]

it's exciting to learn that 7% on a small com property is considered dream land territory