Commercial Property on Central Coast?

Dazz said:
Having been on this forum for over 7 years and shared hundreds of pages of very specific commercial property information to all and sundry, no-one has ever accused me of not sharing property deal details.

I'd be disappointed if there was even one other on the entire forum who agreed with your view.

That's a new low. :(
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And I am insulted that you are implying that I don't do anything to help anyone else.

You started this whole issue. I am keeping one particular property to my self because I am in negotiations on it. That's all. I've lost out on deals before. So I don't share them. If I have a good lead that I am not pursuing I share them.

Hence why I worded my response as "actively pursuing".

I don't know what your issue is, but leave your petty grudge outside and stop derailing threads.
 
Aaron_C said:
Deb just be wary of putting both your business banking accounts and commercial loan with the same bank. I've heard lots of horror stories happen with that set-up.
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Could you please further clarify this? I have both personal and business banking/ accounts with the one bank. I like the relationship that I have with my designated business banker / relationship manager (the bank's term). Is this a bad and unwise move?
 
china said:
Could you please further clarify this? I have both personal and business banking/ accounts with the one bank. I like the relationship that I have with my designated business banker / relationship manager (the bank's term). Is this a bad and unwise move?
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Because the banks can freeze your transaction accounts which can cause a default on your commercial loan since you can't make any repayments if funds are frozen. Why would they freeze it? Many reasons - an alleged default or breach of the loan agreement.
 
Aaron_C said:
Because the banks can freeze your transaction accounts which can cause a default on your commercial loan since you can't make any repayments if funds are frozen. Why would they freeze it? Many reasons - an alleged default or breach of the loan agreement.
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So lets say I have a loan with anz but keep my transaction accounts/ savings with westpac, and anz is unhappy with my loan repayments, can they ask westpac to freeze my accounts?
 
As an educational exercise for me, I wonder what you guys think about the following commercial property on the central coast as an investment?

http://www.realcommercial.com.au/property-retail-nsw-woy+woy-500246981

Let us assume that we can buy it for about 1.5million for a 10% gross yield. Let us assume that we put down a 40% deposit and borrow the rest at 8%. Let us also assume that we can tax deduct the interest costs as well.

Is this type of property going to show good yield and capital growth securely over time?
 
china said:
As an educational exercise for me, I wonder what you guys think about the following commercial property on the central coast as an investment?

http://www.realcommercial.com.au/property-retail-nsw-woy+woy-500246981

Let us assume that we can buy it for about 1.5million for a 10% gross yield. Let us assume that we put down a 40% deposit and borrow the rest at 8%. Let us also assume that we can tax deduct the interest costs as well.

Is this type of property going to show good yield and capital growth securely over time?
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I don't know the area, but would be safe to assume with KFC on a 10 year lease with net rent at 149k p.a. it will sell for much more than $1.5m, and much much lower than 10% net (or gross) yield.
 
china said:
As an educational exercise for me, I wonder what you guys think about the following commercial property on the central coast as an investment?

http://www.realcommercial.com.au/property-retail-nsw-woy+woy-500246981

Let us assume that we can buy it for about 1.5million for a 10% gross yield. Let us assume that we put down a 40% deposit and borrow the rest at 8%. Let us also assume that we can tax deduct the interest costs as well.

Is this type of property going to show good yield and capital growth securely over time?
Click to expand...

Council does have plans for a small redevelopment of the main WoyWoy
shopping strip including opening up a few closed off roads including the
ability to turn right onto Brisbane water drive.
I read sometime ago Woywoy station being one of the busiest outside Sydney.

The Entrance is still struggling, take a drive there during the week and its dead
and only comes alive during the weekend or holidays and with winter coming on
shop owners find it very hard, Still a heap of new highrise units in the dark at night.
 
Trogdor said:
....would be safe to assume with KFC on a 10 year lease with net rent at 149k p.a. it will sell for much more than $1.5m, and much much lower than 10% net (or gross) yield.
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I agree with you. That is going to be more like an 8% cap rate (7.5% maybe on a very good day with all the planets aligned).
 
nww said:
Council does have plans for a small redevelopment of the main WoyWoy
shopping strip including opening up a few closed off roads including the
ability to turn right onto Brisbane water drive.
I read sometime ago Woywoy station being one of the busiest outside Sydney.

The Entrance is still struggling, take a drive there during the week and its dead
and only comes alive during the weekend or holidays and with winter coming on
shop owners find it very hard, Still a heap of new highrise units in the dark at night.
Click to expand...

Long term view. A lot of money and generous development conditions make a difference.
 
Could be worth a look if the money suits, the ad says it is next to Deepwater Plaza.

That is a good location for business with the added possibility of the Plaza wanting to extend sometime in the future. You may even be bidding against the Plaza owners this time :(
 
Propertunity said:
I agree with you. That is going to be more like an 8% cap rate (7.5% maybe on a very good day with all the planets aligned).
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I think one of the fundamental issues with this investment is whether the KFC in this location is profitable. It would be a nightmare in owning this place and KFC decided to leave. How would one go about assessing this? The other factors are whether there is further planned development for this immediate region.

From the various responses, I think that it would seem that there is consensus that making a bid of 1.5 to 1.6 mil seems a safe bet?
 
china said:
...It would be a nightmare in owning this place and KFC decided to leave. How would one go about assessing this?
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One suspects that before one commits to spending over $1M of (presumably) borrowed money, one would check the existing lease and see how long it has to run.;)

china said:
The other factors are whether there is further planned development for this immediate region.
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Perhaps some DD on the council's website or talking to the Planning Dept might be of value here?

china said:
From the various responses, I think that it would seem that there is consensus that making a bid of 1.5 to 1.6 mil seems a safe bet?
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So internet strangers advise you on what is a 'safe' offer now? :confused: My inside info would tend to indicate that $1.6M would not be a winning bid.....but you never know. :) Cheers, Alan
 
I'm actually hoping for amalgamation soon.

With the Wyong GM running the show.

A regional central coast council makes much more sense.
 
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