Hi mflying
But I see this as high risk cos I know nothing whatsoever about this type of business, even with a manager in place I still believe it would be high risk for me.
Cheers, MTR
Possible to buy CIP under $1M
- Thread starter MTR
- Start date
Hi mflying
But I see this as high risk cos I know nothing whatsoever about this type of business, even with a manager in place I still believe it would be high risk for me.
Cheers, MTR
Hi Dazz
I have heard this before, great stuff.
My only regret is that I did not jump into these properties earlier when I had the opportunity, mix it with resi.
What would make it even sweeter if that is possible.... is develop the land down the track, like winning lotto all over again
Can you buy a CIP under $1M. Obviously the answer is yes. The next question is how good an investment will it turn out to be. I manage quite a deal of CIP for a wide variety of landlords. Some have had their choice confirmed as good ones, others not quite so good. When I look at our RESI landlords, I can probably make the same comment.
It all starts with where you are when you start. It’s obviously easier to start with RESI, with loans available with higher LVR's than CIP. The other issue is that usually, its shorter vacancy between tenants in RESI than CIP.
I think the age old question is still there. Do we go for return or capital growth? Return you can be closer to be certain of (depending of non-default by tenant) however capital growth when it kicks in can be a real accelerator. So when we start, maybe a combination of both.
When you get some serious assets together, then choices are available.
I believe Dazz has of late had the benefit of combining with family. I am sure others have done that and found that when family and money come together it has not worked. When it does work, I do believe that can be another accelerator.
Recently I have been receiving emails with syndicates available. For a fixed sum, you own a portion of a property and the syndicate has a preplan to sell with in a certain period. The returns to my surprise are usually above 10%. I have no experience with them so mention them with caution.
Dazz, I was blown away reading that story. It was ballsy to take it on, however being so personally exposed no doubt was troubling. The worst I have experienced, was arriving home to open a small parcel, to find a shot gum shell, with a message attached, next ones coming "airmail". Never found out who did not like me
Keep posting your achievements; I am sure that they will inspire people out of procrastination.
It all starts with where you are when you start. It’s obviously easier to start with RESI, with loans available with higher LVR's than CIP. The other issue is that usually, its shorter vacancy between tenants in RESI than CIP.
I think the age old question is still there. Do we go for return or capital growth? Return you can be closer to be certain of (depending of non-default by tenant) however capital growth when it kicks in can be a real accelerator. So when we start, maybe a combination of both.
When you get some serious assets together, then choices are available.
I believe Dazz has of late had the benefit of combining with family. I am sure others have done that and found that when family and money come together it has not worked. When it does work, I do believe that can be another accelerator.
Recently I have been receiving emails with syndicates available. For a fixed sum, you own a portion of a property and the syndicate has a preplan to sell with in a certain period. The returns to my surprise are usually above 10%. I have no experience with them so mention them with caution.
Dazz, I was blown away reading that story. It was ballsy to take it on, however being so personally exposed no doubt was troubling. The worst I have experienced, was arriving home to open a small parcel, to find a shot gum shell, with a message attached, next ones coming "airmail". Never found out who did not like me
Keep posting your achievements; I am sure that they will inspire people out of procrastination.
I have been following commercial IP sales results for some months now and find that the yields across the country for many types of comm IP range from 5-8%
http://investmentportfolioauction.com.au/recent_auction_sales.html
This has been over a five month period.
Where are we likely to find properties with better yields and located in capital cities/capital growth potential and track record.
http://investmentportfolioauction.com.au/recent_auction_sales.html
This has been over a five month period.
Where are we likely to find properties with better yields and located in capital cities/capital growth potential and track record.
From current into the deregulation/changes to real estate licensing in Australia:
Ref: FairTradingNSW - Pg 27
Australia-wide, only 31% of commercial property sales in 2012 were over $1m, so that gives you a pretty good chance of securing a CIP for less than $1m.
Ref: FairTradingNSW - Pg 27
Australia-wide, only 31% of commercial property sales in 2012 were over $1m, so that gives you a pretty good chance of securing a CIP for less than $1m.
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Is that just because investors with good ones are "forever holds"?
What you will find is that it can be a waiting game. Take Sydney's inner west. Much of the retail strip in these suburbs have been held be migrants who came out in the 1950's and are now approaching their 70's & 80's. As the owners are dying off or the kids don't want them (ignorant 8astards), they are hitting the market. The parents were of the school of never sell but not the kids.
I don't think it's necessarily ignorance per se...most likely a bad will was made and there is no other way of managing the estate except paying out everyone by selling the properties.
Could be right, or retail is way too hard, or just maybe..... the kids reckon they will drop off the perch in 30 years time, life is too short, ..... going out with a bang
Could be right, or retail is way too hard, or just maybe..... the kids reckon they will drop off the perch in 30 years time, life is too short, ..... going out with a bang
...or can the kids only see the equity as a big deposit on their own home, which they can't afford without selling the family shopfront?
Doubt it seems... Jewish, Italian and Greeks hold these properties and they look after their kids.
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My grandfather had 4 or 5 commercial properties and a business operating in one. The next generation sold them all off. I remember being about 8 asking about them. My mum would say she didn't know much and didn't have any business sense. I guess some people understand investing, some don't. There was also some unfairness/greediness - I'll never know the whole story. I know they sold one property that had the business operating when someone retired and they weren't bothered to replace him so they sold the property empty. Another property had the same tenant for about 20yrs, he's still there now, 15 yrs after they sold.
So the current generation would sell the kids?
...considering all offers for several of mine this morning. 4am starts are harsh when ur not getting shift penalties.
I feel the pain. All parents have been in similar places.
Ms20 and Ms24 will come back home later this year after several years travelling. It may be a difficult experience in its own way.
Ebay might be your friend
I have to fill up with petrol shortly. I may try selling an arm and a leg myself.
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