Buying a property that you rent

My folks purchased one of the shops they leased in around 2001.

The combined capital growth and rent has been around 7-8x the profits in the business over the 11-12 years.
 
As a general rule I would say net retail yields for freehold properties in non prime but well regarded strips in suburban Melbourne would fall from 4.5% to 5.5 or maybe 6%.

For circa $550k your shop must be either small or be in a non-prime strip.

I just hope you aren't in Bridge Road!
 
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