澳洲Australia property What to do? What to do ? | Sydney


在澳大利亚 I am in Melbourne. Would like to buy properties interstate. How difficult is that to manage these properties. Any advise. 评论 Do you mean manage to find them or manage as in property manager? 评论 Manage to find a good property manager 评 Hi everyone, After months of searching for my first IP I believe finally have the corage to put in my first offer. I would love some feedback Property: Duplex Asking price: $239,000 I believe it is worth $225,000 to $230,000 My Offer: $218,0


Hey all,

I was hoping i could have some conversation about my situation.
I have just recently found out that i will need to close shop in 3 years time as the owners of the building that im conducting business out of have refused the preposal of an extention of lease.

So im currently in negotiation of my final 3 year option. Im in the position that i must accept this 3 year option ( even if it is a 15% increase in rent) on the first year and 6% for the second and another 6% for the third.

So i know that i have 3 years left and now im trying to come up with some sort of plan or direction in what i should do, in regards to my investing outlook.

You see when you are in business/ job for that matter you think that your income will always be there. Ive come to relise that my income is a fragile thing, and now im really confused as to how i should approch the next 3 years! Its a really strange feeling.

I guess the question for me to ask myself is, Do i continue to invest (IO fixed loans) and try and buy as much as possible, then hope that CG do their thing? and when the time comes that i close shop adjust my debt lvl to my new LOWER income by selling a house or two.
OR
Do i just start paying down my debt lvls now ?

PS. im in the middle of a 3 bedroom unit development behind my PPOR (owner builder) (the build should give me 200k equity)

PSS. im really not sure you lot can help me with this desicion but i thought id put it out there anyways because it all seems a bit much for my brain right now. All i know is that i want to make a descion and stick to it. Ther NEEDS to be a plan! :eek: :eek: :eek:  

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Hi GT....I can certainly say I've thought about this issue previously. It was for this very reason I purchased my own commerical property, as a guarantee that I would not have to move my business...unless it was my choice.

So, just a couple of questions:
Do you want to be still running this business more than 3 years from now?
Are your intentions to retire/semi-retire/retire into the IP-business, or do something else in 3 years time?

Is there any opportunity for you to sell your business?  

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No opportunity to sell as i dont know of anyone that would buy a business without a lease in place.

Definatly cant retire, my intentions are to replase the income to SOME extent when the 3 years are up and maybe do something a little less labour intensive. At the moment im working 5 days a week from 3:30 AM to 7PM (theres only so long you can so that for)

Ive been running this business from the age of 18 and am a little lost in what to do when i get out of my current business, its a little scary to be honest.

Id love to keep working with property, its just something that ive always loved, and is the reason behind my insane hours. I basically run the business so that i CAN invest in property. When the business goes well.... thats the scary bit.  

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Why can't you lease a new premises to continue the business? Is your current location so special??  

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Can you employ and train someone to take some of the long hours from you?  

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Simon said: ↑
Why can't you lease a new premises to continue the business? Is your current location so special??Click to expand...
nothing in the same area.
sailor said: ↑
Can you employ and train someone to take some of the long hours from you?Click to expand...
yep but that doesnt help mee too much does it ?  

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why do the owners not want to rent to you in 3 years time? are they looking to sell? can you buy it off them?  

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nope they are not looking to sell, they only purchased the place 12 months ago for just over 1.5M

Id be thinking the only reason is that they would want to move into the place and conduct thier business out of the premisis.  

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This isn't making too much sense Giulio.

Giulio Taranto said: ↑
the owners of the building that im conducting business out of have refused the preposal of an extention of lease.Click to expand...
By the sounds of it, your original Lease term is expiring, and you are fortunate enough to have been granted an Option term of 3 years. This is for your sole benefit as Lessee only....it has no value for the Lessor at all. The Option is simply that, your choice to take up or not.

What you've stated in the above paragraph that the Lessor refuses you an extension on the Lease is simply not true. Three (3) years time I reckon is a pretty decent extension. It's not up to them. It's up to you whether you take up the deal or not.

Who knows, the Lessor may wish to demolish the current facilities and re-develop the entire property. You may be a complete thorn in their side. If you don't take up your Option, that may be worth 100's of Ks to them. Have a chat to them and see what they want. You may come out of it with a very pleasant surprise. They could very well pay you big mobs of cash for you not taking up your option. Who knows until you ask ??

Giulio Taranto said: ↑
So im currently in negotiation of my final 3 year option. Im in the position that i must accept this 3 year option ( even if it is a 15% increase in rent) on the first year and 6% for the second and another 6% for the third.Click to expand...
It sounds to me as if the ship is a bit rudderless, and you are looking for someone to blame here for the business' circumstances....anyone'll do....as long as it isn't the business owner. A mere 15% mark up for a market review on option take up is pretty mild....count yourself lucky I reckon. And 6% p.a. escalation thereafter is also pretty tame. I'd concentrate more on the revenue side of your business, and make sure it's crackingly good....to the point where the rent payments are a mere trifling.

I've never heard a business owner say that they are in "a position" where they are forced to do something that is their choice. You must be in a dreadful position if that is the case. Can I ask what the duration of the original term length was ?? How many years have you worked to get into this dreadful position where your hand is forced ??

Giulio Taranto said: ↑
So i know that i have 3 years left and now im trying to come up with some sort of plan or direction in what i should do, in regards to my investing outlook.Click to expand...
This sounds like you are in need of some serious, professional business coaching to get your business back on track. Asking a gaggle of anonymous property investing forum members on the internet is probably the wrong audience.  

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You may come out of it with a very pleasant surprise. They could very well pay you big mobs of cash for you not taking up your option. Who knows until you ask ??This is a good point, will be asking the question, most definatly

It sounds to me as if the ship is a bit rudderless, and you are looking for someone to blame here for the business' circumstances....anyone'll do....as long as it isn't the business owner. A mere 15% mark up for a market review on option take up is pretty mild....count yourself lucky I reckon. And 6% p.a. escalation thereafter is also pretty tame. I'd concentrate more on the revenue side of your business, and make sure it's crackingly good....to the point where the rent payments are a mere trifling.

I've never heard a business owner say that they are in "a position" where they are forced to do something that is their choice. You must be in a dreadful position if that is the case. Can I ask what the duration of the original term length was ?? How many years have you worked to get into this dreadful position where your hand is forced ??
Daz not looking for anyone to blame, i understand the the owner is trying to get the best possible return he can ( iwould be doing the same thing) The reason i feel forced to take this option is i cant just walk away from my income as well as my wifes income it just too much of a hit in the hip pocket, i have morgages to service and a have already started construction on a development. THIS is why i feel forced, and they are the choices i have made that have put me in this position.
The original terms were 3 years with the option of three years


This sounds like you are in need of some serious, professional business coaching to get your business back on track. Asking a gaggle of anonymous property investing forum members on the internet is probably the wrong audience.
Let me just say that im not in the need of professional business coaching. My original concern is not the fact that my business is not making enough money, nor was it that i was trying to blame the new owners that outbid me 30k to purchase this very property that im now leasing from them. What i didnt know how to approch is the investing outside of my business for the next 3 years knowing that the lease will expire in 3 years. So with that in mind i think this IS one place i can get an outside veiw on the matter  

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I sympathize with your situation Giulio. I may well be in the same position at the end of my next lease, which I have to be honest - is my biggest fear. Hopefully it won't happen, but I am pretty much at the mercy of the landlord if he has other plans eg. the building is sold, he has a national tennant willing to outbid me for the rent etc. Even if I could find another place in the area (very unlikely) - I'll pretty much lose 40-50% of my revenue in a new location.  

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steveadl you see now your talking my language! Its a hard spot to be in, so im trying to get myself prepared.:)  

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Giulio Taranto said: ↑
steveadl you see now your talking my language! Its a hard spot to be in, so im trying to get myself prepared.:)Click to expand...
Exactly my thinking too Giulio! Whilst I run my business well, and am doing great in my investments etc., if I lost the business tomorrow, I don't really have any qualifications to get a decent paying job.

This is one of my main motivations at present with property investing (the other is I enjoy it :) ). My strategy at the moment is to get as much property as quickly as possible while I can afford it, and one day if the worst happens, then I'll have to reasses. Which is I guess what you're thinking about now.

If it were me, first I'd look at other sites for my business (as undesirable as a move will be, it's really all I know, so would first give that a shot). I would also perhaps before the 3yrs is up, try to buy a similar business in another area which I could continue with once the existing one is gone - even if it meant selling an IP to finance the acquisition. If this failed and I was faced with getting a 9-5 job that pays little - I would over the next 3 yrs perhaps buy another property (finances allowing) whilst I could still afford it, in an area I believe will have good CG over the next couple years.

You do have one good thing out of all of this - a definite time line to plan towards. Then as the deadline draws nearer, analyse the debt you have and perhaps sell an IP if the debt is too big to service. I would also then look to see if I could draw any equity from the other IP's to put into managed funds that could help me service the debt once my income drops.

I guess it really depends on what you current asset/debt situation is.  

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whats the bleedin business.! ? I'm intrigued that you have so many showstoppers with your business and I can't work out what sort of business under what sort of circumstances will simply cease to exist if you still have the will to run it.  

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it would cease to exist because i have no lease and the only way to continue with this business (if i choose to do so) is for the next 3 years pour the income that i make in that time into another premisis, for start up and set up costs. Im not sure that i want to do this.
In business the will to run something is just not enough. There is a LOT more that goes into owning and running a business than that. :)  

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i'm just interested in knowing what "the business" is.:confused:  

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from memory its a seafood shop?  

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yeah sure is.  

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