Gosford commercial property

[china]

I would appreciate your advice on the following property.

http://www.realcommercial.com.au/property-retail-nsw-gosford-500466183

1. What is a good price for this property?

2. Is it a good buy in terms of capital gain and rental return over time?

3. Is it a risky buy in terms of no tenant after 2017? (This question is for those who know the Gosford market)

4. What sort of deposit would you put down for this property in terms of percentage of price? I would like a cash flow positive situation and to obtain maximum tax deductions

 

[Scott No Mates]

Modern ex-banks are usually well located due to the banks wanting the higher foot traffic areas in the street. It is purely crystal balling what will happen in 5 years but you can model the scenario of vacate, vacate but retain ATM Bunker, exercise of option and new lease.

Each will give you a different outcome.

Do your due diligence on the lease and the building.

Also check if there is any development upside for when the tenant eventually vacates.

Generally you will require 40% deposit which will make most properties cf +.