Investment Office

[investor_2008]

HI every1,

Today I saw this ad, it an OFFICE:


Contract Type For Sale
Floor Area 41.00sqm (approx)
Sales Price $200,000 GST (exclusive)

Rental income: $16,000(+GST)pa,
Lease 3+3 year , Commenced on 23/4/07
Annual CPI Increases
Total annual Outgoings: $3, 280pa (approx)

Can anyone tell me what is CPI mean? What is the total annual outgoings?

Thx

 

[JoannaK]

CPI is Consumer Price Index, so the increases are made pursuant to whatever the CPI increase was since the previous increase.

Outgoings are the bills such as council, water, strata, insurance, land tax. You need to find out if the rent is a gross rent (where the outgoing are paid within the rent) or net (where the outgoings are paid on top of the rent) or if indeed the tenant even gets charged outgoings at all.