I have lived in Perth for over 15 years and across the road, I watch a 1898 building getting renovated, they then rented it out on a long lease of 5+5 with seven years to go. The renovation was very well done, very professional.
I sore the ad on the internet with the price of mid to high $1,000,000
They receive about 75k p/a, income as advertised
Attached to the building is a guest house (holiday home) very small, I don’t think it has a kitchen, which makes up some of the income. How much I don’t know, still waiting for a reply
I got tired in waiting, so I e-mailed my property manager which is only one block from the property in question, (he’s the principal owner of the real-estate company)
The feed back was it would be a good buy at $1,200,000
, given the current market that would give me a gross yield of 6.25% (then why advertise it mid-high I ask myself)
The property is in a good area close to Fremantle, and I’m guessing it will have small capital growth in the next couple of years but in the passed had 10%pa
My question is, given the amount of money for one property, is the return good enough, cash flow good given the current interest rates,
Or do you expect better returns with communal buildings,
I havn't got any info on what the lease agreement is like, but I have meet the owners in the passed and would guess it would be very much sided on the owners side
Even if I don’t proceed, would love to learn from this example
I sore the ad on the internet with the price of mid to high $1,000,000
They receive about 75k p/a, income as advertised
Attached to the building is a guest house (holiday home) very small, I don’t think it has a kitchen, which makes up some of the income. How much I don’t know, still waiting for a reply
I got tired in waiting, so I e-mailed my property manager which is only one block from the property in question, (he’s the principal owner of the real-estate company)
The feed back was it would be a good buy at $1,200,000
, given the current market that would give me a gross yield of 6.25% (then why advertise it mid-high I ask myself)The property is in a good area close to Fremantle, and I’m guessing it will have small capital growth in the next couple of years but in the passed had 10%pa
My question is, given the amount of money for one property, is the return good enough, cash flow good given the current interest rates,
Or do you expect better returns with communal buildings,
I havn't got any info on what the lease agreement is like, but I have meet the owners in the passed and would guess it would be very much sided on the owners side
Even if I don’t proceed, would love to learn from this example
