Hi All,
Currently considering next IP and have been thinking about making my first commercial investment.
I've been looking at 9-10% gross, 7-8% net small medical/doctors offices and other offices.
However I only have enough deposit for $200-$250k purchase, assuming 30% deposit, and $10-$20k of closing costs.
How much do you normally find closing costs are for commercial compared to resi? How much more are the lawyers and due diligence and everything else involved?
What should be my budget if buying a $225k CIP?
Assuming closing costs are similar if buying a $250k property or a $2m property (except for stamp duty), is it even worth me bothering with this and should i just get another residential instead?
I am looking at this as a learning experience though, where I can just buy one with lease, and start learning from here, then buy something bigger when I get more deposit from resi equity revaluations. The yield can still be found in the small properties, I'm just wondering if the accounting costs, and closing costs make it not worthwhile..
Or am I just better to wait and buy something bigger once I have more equity?
Currently considering next IP and have been thinking about making my first commercial investment.
I've been looking at 9-10% gross, 7-8% net small medical/doctors offices and other offices.
However I only have enough deposit for $200-$250k purchase, assuming 30% deposit, and $10-$20k of closing costs.
How much do you normally find closing costs are for commercial compared to resi? How much more are the lawyers and due diligence and everything else involved?
What should be my budget if buying a $225k CIP?
Assuming closing costs are similar if buying a $250k property or a $2m property (except for stamp duty), is it even worth me bothering with this and should i just get another residential instead?
I am looking at this as a learning experience though, where I can just buy one with lease, and start learning from here, then buy something bigger when I get more deposit from resi equity revaluations. The yield can still be found in the small properties, I'm just wondering if the accounting costs, and closing costs make it not worthwhile..
Or am I just better to wait and buy something bigger once I have more equity?