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maybe it's now sold ...
The ad is really vague, its hard to tell if the house is tenanted or OO since its selling at the 'value of the house' (for that price it would want to be a VERY nice house). If *both* are rented out then yeah, not so good a deal. If its just the bank, then its not so bad.
Don't you hate vague ads?
http://www.realcommercial.com.au/cg...3&s=sa&snf=as&tm=1247397601&cu=fn-realcom_CBR
Wouldn't mind a nice $1.5mil net per annum to keep the bills paid.
I guess this falls under the heading of "opportunity cost" - what better use can your money be put to.
For me; unless you are worth far more than this one deal, a purchase like this, while a nice return, is probably more risky than owning the equivalent 30 or 40 houses to the same value.
Why? Because you would have most of your wealth tied up in one property, and some of the tenants are Banks. The risk of vacancies is higher in this scenario, and being a comm property, may take a while to get new tenants.
It is no secret that Banks are consolidating and trimming costs these days by sacking staff and closing Branches. This sends off alarm bells in my head, and may be why the property is for sale?
The extra land around it is a bonus for other projects I suppose, but as I said; it would need to be a deal that is only a small portion of your overall wealth, or if you were combining your wealth with that of a few other partners.
It's definitely something I would like to "build up to" though.
I can hear Daz slamming away on his calculator as we speak!
Hi DazNo doubt - that's what investors always do....isn't it ??
Yep
Townsville - 8.75% nett yield on asking price. Tenants look good, but having read many Govt Leases, there are plenty of downsides compared with strong corporate Leases.
Does this mean that if there is a residential house on a mainy road that already has a few other similar properties that have been converted/used/rented for businesses, eg doctors clinics, etc, that your property is worth a lot more, or worth the same???? compared to a house on a side road that has no/not allowed to have any commercial businesses assuming that the house is identical????