From just a quick glance, is THIS the type of thing ?

Say someone was negative geared around $30k (before nay tax refunds)...
Say they stumbled on a few hundred k cash .. (cause they certainly don't have it in equity)

would the below be a decent entry commercial and way of making a portfolio netural (well acutally, at this rent return and use of a deposit as reuired the bank, it might well be c/f positive):
$132 rent

Loan $1m (?)
Interest Bill $ $80k (?)
= $52k
less $30k for current ip's = $22k +ve (?)

http://www.realcommercial.com.au/cg...header=&cc=AU&c=55864204&snf=as&tm=1286190399


hmmmm...
 
Im not particularly familiar with rents in muswellbrook however just looking at this:

Term: 5 year + 5 year option are they close to expiry?
Nett Rent: $132,980 + Outgoings + GST (OR $189 psm NET)
Improvements: Building 648m2 (approx) + 54m2 (approx) mezzanine+ hardstand & wash bay
Land size: 4680m2

Im not sure what hardstand/washbay leases for down there however that rental looks like it could well be way over market. If you did a profit rental adjustment over the remaining term of the lease your yield may not look so pretty.

However, I only work in commercial valuations in Brisbane so I am unsure about rentals down that way.
 
JC,

The Tenants might have 6 months to go on their Lease and have no intention whatsoever of taking up the option, and have already let the Landlord know this.

Landlord then plonks it on for sale with an attractive 10.6% nett yield hoping to catch someone.

If that is the scenario, you can be sure that no Bank will support you.

If you have cash and don't need to involve the Banks, you might score yourself a winner if they take up their option.


.....or they might be only 6 months into the first 5 yr temr and they aren't paying their rent.

.....or it could be a screaming good buy, and the acre of land might be worth 1.1m by itself.

You need to do a whole bunch of DD to work it out for yourself, unless you are willing to share the spoils of victory.

A competent, reliable answer to your question is worth a shed load of money to both you and the person answering it.
 
Hi Dazz,

Your're right ..

I'm asking a lot, but would be satisfied with a little

The sort of answers you've given are the sort of answers needed - might sound like the obvious things, but they are only 1/2 obvious (if lucky) to me..

Just trying to udnerstand a bit more than I do now, so that I could if I wanted / needed to determine what is feasable/no feasable

cheers for your help
 
Sorry to everyone,

for wrongly thinking my topic had enough merit to be discussed without everyone ignoring it and focussing on taking the p is s out of my typo's

Hi Jaycee,

Other responses aside, I think it's a good question. Dazz's response is also good however i'm curious how one could show the current tenants intent to not renew an option unless the landlord has been specifically informed of this in writing.

G
 
GFM if there is say 6mths left on the lease, I gather that in order to obtain finance, one would need confirmation that the lease is to be renewed. Such confirmation would probably involve signing of the lease for the next term (5yrs).
 
Most comm Leases will have a provision that stipulates a certain time before expiration of the original term that the tenant must give notice that they are going to exercise their option. Get hold of the Lease, ascertain this time, and seek confirmation as to whether they have done so or not.

Boods
 
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