From: Dale Gatherum-Goss
Hi
As you know, I've been looking for another IP for a little while now.
I'm currently looking at a commercial property on 1,604sq metres of land on a main Highway.
The deal (after some negotiation) is presently $320,000 with net return of $32,000 pa rent. The tenant pays all outgoings and so it is very cash positive. The tenant wants a 5 years lease with 3 further options to lease for 5 years each. Rent is to increase each by 3% or market values whichever is higher.
The land could be used to build 3 townhouses at a later point if the tenant decided to go elsewhere. This is unlikely given that he has been there for many years.
I'm looking to negotiate the price even more.
So, I'd appreciate any thoughts, feedback or advice on this deal if you have a spare moment.
Thanks
Dale
Hi
As you know, I've been looking for another IP for a little while now.
I'm currently looking at a commercial property on 1,604sq metres of land on a main Highway.
The deal (after some negotiation) is presently $320,000 with net return of $32,000 pa rent. The tenant pays all outgoings and so it is very cash positive. The tenant wants a 5 years lease with 3 further options to lease for 5 years each. Rent is to increase each by 3% or market values whichever is higher.
The land could be used to build 3 townhouses at a later point if the tenant decided to go elsewhere. This is unlikely given that he has been there for many years.
I'm looking to negotiate the price even more.
So, I'd appreciate any thoughts, feedback or advice on this deal if you have a spare moment.
Thanks
Dale
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