Hi, anyone interested in a block of 3 shops @ around $400000 fully leased?
Main tenant: hairdresser 3+2 x 5 x 5
other tenant: printer 2+2 then rent review
Both tenants are doing very well. Printer expanded to take over shop 2 at 20% rent discount.
Hairdresser unfortunately got too long a lease @CPI
Current council valuation is $340000 which is quite reasonable.
The neighbouring block which I own too is valued by council at 30% less than I can sell them for.
Will be looking at 7% yield. Main attraction is the property has always been under rented, because they were originally owner occupied.
kum yin lau said: ↑
Main attraction is the property has always been under rented...Click to expand...
So, the major attraction of the property is that it doesn't generate sufficient rent, but with the main Tenant having a long tenure if they so wish, this will be rectified and the opportunity will blossom in 15 years time ??
Where are the properties located?
Hi,they're in Eden Hills.Ever since the manager went to Victoria, I've been plagued by mgt. A better manager can make far better yields. Obviously I bought for a ridiculous price but I'm asking 7% nett.
The 2nd tenant got 2 shops for $1400 per month. At present rates re the other tenant, it's $840 per shop.
Rent review is in 2012. Most of my tenants relocated from Blackwood cos the rents there shot up. The hairdresser was offered the lease at $40000 pa so he decided to move to my shop at $10000 pa
Agent thinks the likely result is one of the tenants will buy the property. I don't want to talk to the tenants so they can make their move on auction day.
My sister's shop at the far end [the pool business] sold for $275000 last year.
Hi, shop sold @ 7.5% nett rent on current letter from prospective tenant.
Buyer hasn't accepted the tenant yet as he's a builder who's probably going to build at the back. Possible to add 80m2 lettable area with small effort.
Me, I'll have better cashflow & move on to look for property with depreciation.
Overall, about 22% average, not as good as the other properties. The adjoining block is showing far better returns.
KY, what was the auction like? Many people bidding? Happy with the result?
Congrats on the sale KY
Hi, recount of auction may help those of you looking to sell. We didn't get a lot of interest through the newspaper ads. Auction day was wet, cold & dreary. 2 parties [both investors] were interested but didn't bid.
I told the agent that I'd most likely withdraw the property & went to Kuala Lumpur for 3 weeks.
1 week after the auction, interested owner occupiers turned up but they offered around the auctioneer bid of $330K [I'd never have sold @ that price]
So my answer was 'no' to $335K & refused to talk to anyone. The offers increased to $340K & I wanted to say which part of no they didn't get.
I set the lowest minimum @ $355K & 2 parties offered $355K & $356K. The 3rd interested party said Not a cent above $345K & then when told he was out of the running, increased to $355K
I gave everyone a week to cool their heels & finally accepted $361K
I'd thought $380K would be good so I'm not quite ecstatic about it but I'm content.
I'd probably have got $5-10K more if I pushed it but I was happy to sell to the guy who put in the fairest fair offer. The other one who started at 335K then went to 345 & when I wouldn't budge, finally offered 355K, it was like pulling a bad tooth.
It's not quite businesslike but I wanted to punish him for putting in a cheeky lowball offer.
Conversely, I'd have been OK not to sell. We had offers to rent @ good yield.