Hi all
We told the agent we want to put in a good tenant with a good lease, wait and then sell.
As mentioned in a previous thread the property is 125 office + 125 Workshop + 1050m industrial land in Kurri kurri (Hunter Valley / west of Newcastle)
When asked what we want we said about $26,000 pa + gst + outgoings
From previous values we estimate a sale price of $350,000 + gst
Which would give the buyer a 7.4% yield
Agent said we could try and lease for $30,000 pa and an investor would be looking for at least 9.0% pa yield
If we could manage to get say $28,500 pa in rent the sale price with a 9.0% yield would come down to about $316,000, which we think is to cheap
The numbers are not adding up for me or is the 9.0% just to high for our property considering the land size to office and workshop size etc?
He did suggest it would suit an owner occupier and going to auction.
We have had an offer to buy from a neighbour about 6mths ago just below the $350k
Hope my numbers are ok
Thanks again everyone for your opinions and advice Ironlady
We told the agent we want to put in a good tenant with a good lease, wait and then sell.
As mentioned in a previous thread the property is 125 office + 125 Workshop + 1050m industrial land in Kurri kurri (Hunter Valley / west of Newcastle)
When asked what we want we said about $26,000 pa + gst + outgoings
From previous values we estimate a sale price of $350,000 + gst
Which would give the buyer a 7.4% yield
Agent said we could try and lease for $30,000 pa and an investor would be looking for at least 9.0% pa yield
If we could manage to get say $28,500 pa in rent the sale price with a 9.0% yield would come down to about $316,000, which we think is to cheap
The numbers are not adding up for me or is the 9.0% just to high for our property considering the land size to office and workshop size etc?
He did suggest it would suit an owner occupier and going to auction.
We have had an offer to buy from a neighbour about 6mths ago just below the $350k
Hope my numbers are ok
Thanks again everyone for your opinions and advice Ironlady