Auction Day!

My parents are selling a block of factory units at auction today in north west Sydney. The bought the property in the early 80's. Over 30 contracts have gone out. Interest has been astonishing. The auction is onsite, we are all going to watch. Very exciting!

 

It's an incredibly hot market for industrial, with lots of inexperienced players (<$5m/small investors) who will pay over the odds to get a return better than 0.1% in a term deposit.

Fingers crossed.

 

The property is very under developed so lots of interest from developers too.

 

Beat of luck. Hope they get a huge price.

 

Your parents worked hard and I hope they can achieve a very good sale for their commercial property.

 

Exciting stuff
Looks like they may get top $ in today’s market

all the best. Love to know the sold price if you care to share

 

And the purchase price

Cheers,
Oracle.

 

Industrial going bonkers, as everyone now shopping on line, they need big sheds for storage etc

Wonder how commercial is going? Now with new covid environment etc????

 

Just out of curiosity why are they selling after holding the property for only forty years ?

I was thinking it would be a great opportunity for the next generation (you and your siblings) to bring the block to full potential ie the next level (The property is very under developed )

ps i regret not developing the properties I brought fifty years ago.

 

But they'd be up for major capital works now

 

Comes back to $$$$$

Also inheritance may still be very nice down the track….. oops am I being tacky

 

They are in their 70's. It is owned by their company and they are winding up the company. It is a pre-CGT asset so they can disperse the funds CGT free to themselves (so the advice says that we have received).

Not sure how development would affect the pre-CGT status on the property if we developed it. None of us have the experience. Or the contacts to develop the site without paying premium prices. I am thrilled for my parents to sell and benefit from the profits. They offered to sell to me but I would have felt I was cheating them out of the opportunity to sell for a premium at auction so decided against it.

 

I hope they have a testamentary trust option within their will's. If not, you should look into the benefits of one

 

They paid $190,000 is 1982
It sold for $2.9m yesterday
New record price per sqm for the area according to the agent

19 Anvil Road, Seven Hills, NSW 2147 - Industrial & Warehouse Property For Sale - realcommercial

 

Very good outcome and shows the naysayers about no capital growth in commercial properties once again.

 

The buyer will get a 2-2.5% net return at that price.

Unless someone redevelops & can achieve at least 0.7:1 FSR, they won't be making much of a return. Current FSR is only 0.4:1 (grossly under-utilised).

 

7% CAGR, so 3.5% above inflation + rental yield. Not bad.