I own an IP in Fairfield and I'm at a crossroads of whether to build a GF or not.
The payback period should roughly be 7-8 years conservatively estimating. The asset should yield roughly 10% net sustainably, which is a great yield (what shares can beat that?)
I'm about to make a decision - is there anything I should have a think about before I do?
My land could get rezoned in the next few years but even if it does, I doubt I'd be in a position to build anything meaningful before the GF payback period is up.
Also I don't think it will reduce the rent of the front house because the yard is a weed farm right now and not used anyway, but even after factoring a $20 reduction in front rent the numbers are the same.
The payback period should roughly be 7-8 years conservatively estimating. The asset should yield roughly 10% net sustainably, which is a great yield (what shares can beat that?)
I'm about to make a decision - is there anything I should have a think about before I do?
My land could get rezoned in the next few years but even if it does, I doubt I'd be in a position to build anything meaningful before the GF payback period is up.
Also I don't think it will reduce the rent of the front house because the yard is a weed farm right now and not used anyway, but even after factoring a $20 reduction in front rent the numbers are the same.