Absolutely.
Unfortunately thats a very, very (very!!) long way away at this stage
Oh well, you gotta start somewhere!
First CIP Purchase
- Thread starter Trogdor
- Start date
Absolutely.
Unfortunately thats a very, very (very!!) long way away at this stage
Oh well, you gotta start somewhere!
If you can get individually big enough to invest this way directly then that would be great.
More realistically, I would aim to buy into private direct commercial property syndicates as part of my overall portfolio to gain exposure to this market.
Moreso in retirement for more diversification, or if you are unable to get leverage to buy a direct CIP on your own.
Well done Trogdor.
Sounds like you've bought the exact type of premises my business operates in - individually owned buildings in a high end retail strip.
The yields on these areas are always on the lower end due to the unusually high demand for these types of premises, which is also why it's good to provide for them - but vacancies are not really going to be an issue for you providing you're a) in the heart of the precinct (not on the edges) and b) are not asking above market rates when it is time to find a new tenant. And whilst this may be a generalisation based on the strips in Adelaide I know - the capital gains are excellent. Whilst there are a few more petty annoyances than say industrial property - such as some maintenance etc - it's well worth it.
In my strip, it's extremely hard (virtually impossible) to find a vacant shop to lease in the core part of the strip. There's pretty much no such thing as vacancies - for the first time in 10yrs, there was actually a 'for lease' sign in a shop along the core strip. It only lasted a month (who knows perhaps less if I knew the details) and had multiple people interested. Generally you don't even know a shop is becoming vacant, the first you know of it is when the store closes down and the new tenant puts a 'coming soon' sign up. Many premises have a key purchase negotiated between the old and new tenants.
Anyway, good on ya mate, still hoping I'll be able to buy the building I'm in one day....
Sounds like you've bought the exact type of premises my business operates in - individually owned buildings in a high end retail strip.
The yields on these areas are always on the lower end due to the unusually high demand for these types of premises, which is also why it's good to provide for them - but vacancies are not really going to be an issue for you providing you're a) in the heart of the precinct (not on the edges) and b) are not asking above market rates when it is time to find a new tenant. And whilst this may be a generalisation based on the strips in Adelaide I know - the capital gains are excellent. Whilst there are a few more petty annoyances than say industrial property - such as some maintenance etc - it's well worth it.
In my strip, it's extremely hard (virtually impossible) to find a vacant shop to lease in the core part of the strip. There's pretty much no such thing as vacancies - for the first time in 10yrs, there was actually a 'for lease' sign in a shop along the core strip. It only lasted a month (who knows perhaps less if I knew the details) and had multiple people interested. Generally you don't even know a shop is becoming vacant, the first you know of it is when the store closes down and the new tenant puts a 'coming soon' sign up. Many premises have a key purchase negotiated between the old and new tenants.
Anyway, good on ya mate, still hoping I'll be able to buy the building I'm in one day....
Yay, welcome back, buddy!
Thank you TPFKAD.
I must admit that although I dont know you / have never met you - your posts regarding your journey have been a very large inspiration to me to go down this path, and turn thoughts into action.
Probably the most inspirational poster on this forum.
Thank you - and hope you're enjoying retirement!
Late on the congrats
Hi Trogdor,
Well done on purchase! Kudos for sharing details.
Apologies for dragging up an old thread, but I have been focused elsewhere in the last 15 months, but have enjoyed revisiting the forum and finding jems like this thread.
Mrs Horizon and I are now in the market for a CIP so it is back to drinking from the firehose to get up to speed.
Cheers,
Sean
Hi Trogdor,
Well done on purchase! Kudos for sharing details.
Apologies for dragging up an old thread, but I have been focused elsewhere in the last 15 months, but have enjoyed revisiting the forum and finding jems like this thread.
Mrs Horizon and I are now in the market for a CIP so it is back to drinking from the firehose to get up to speed.
Cheers,
Sean
