http://www.realcommercial.com.au/property-hotel+leisure-nsw-parkes-501097147
As a principle I understand that long term leases are a good thing. In the advertised property, there is a 30 year lease. So surely this property must be an attractive proposition? For 1.9 mil it seems that the new owner can receive 170k indexed to CPI for the next thirty years - which makes 1.9 mil the price of financial freedom for me and many others.
The downsides as I see it:
1. Can the tenant really last for 30 years and honor a 30 year lease?
2. If the tenant goes bust 3 years down the track, you are left with a useless property in the middle of nowhere.
I would be grateful for your opinion on the downsides of the advertised property.
As a principle I understand that long term leases are a good thing. In the advertised property, there is a 30 year lease. So surely this property must be an attractive proposition? For 1.9 mil it seems that the new owner can receive 170k indexed to CPI for the next thirty years - which makes 1.9 mil the price of financial freedom for me and many others.
The downsides as I see it:
1. Can the tenant really last for 30 years and honor a 30 year lease?
2. If the tenant goes bust 3 years down the track, you are left with a useless property in the middle of nowhere.
I would be grateful for your opinion on the downsides of the advertised property.