This month's API, talking about commercial properties makes the usual points about better yields but also raises two important ones:
. Recent sales suggest that most small buildings are sold with vacant possession and are often bought by businesses seeking to exit the rental market;
. Very little in commercial property is available to smaller investors (i.e. who wish to invest less than $1 million).
How would you like to dip your toe into the commercial market while still retaining enough of a residential character to allow you some degree of comfort?
I am selling a property in Launceston to raise cash for other ventures. The property comprises four flats and a shop (a cafe) on one of the main streets. The cafe has been in continuous operation since at least 1990.
The rents on the property are
Flat 1: $55 p.w.
Flat 2: $120 p.w.
Flat 3: $75 p.w.
Flat 4: $120 p.w.
Cafe: $12,500 p.a.
giving a total rental return of approximately $32,000 per year. Depreciation schedules are available. Rates, water and land tax total around $5,500 p.a. and the property comes with the best PM it has ever been my pleasure to deal with.
I'm looking for a price of $420,000. The nearest equivalent property I can find has a single office with 7 suites on the ground floor and a single two bedroom flat, and is on the market for $495,000. If I can't move the property soon, I'll revert to plan B and strata title it (process under way already) to sell it off piecemeal.
I have deliberately left fat in the deal to make this a win/win, but I'd like to move quickly. PM me with offers, or post questions - happy to answer as always.
. Recent sales suggest that most small buildings are sold with vacant possession and are often bought by businesses seeking to exit the rental market;
. Very little in commercial property is available to smaller investors (i.e. who wish to invest less than $1 million).
How would you like to dip your toe into the commercial market while still retaining enough of a residential character to allow you some degree of comfort?
I am selling a property in Launceston to raise cash for other ventures. The property comprises four flats and a shop (a cafe) on one of the main streets. The cafe has been in continuous operation since at least 1990.
The rents on the property are
Flat 1: $55 p.w.
Flat 2: $120 p.w.
Flat 3: $75 p.w.
Flat 4: $120 p.w.
Cafe: $12,500 p.a.
giving a total rental return of approximately $32,000 per year. Depreciation schedules are available. Rates, water and land tax total around $5,500 p.a. and the property comes with the best PM it has ever been my pleasure to deal with.
I'm looking for a price of $420,000. The nearest equivalent property I can find has a single office with 7 suites on the ground floor and a single two bedroom flat, and is on the market for $495,000. If I can't move the property soon, I'll revert to plan B and strata title it (process under way already) to sell it off piecemeal.
I have deliberately left fat in the deal to make this a win/win, but I'd like to move quickly. PM me with offers, or post questions - happy to answer as always.