Does Net yield include mortgage repayment expenses

Discussion in 'Commercial Property' started by jigmey dorjee, 5th Feb, 2022.

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  1. jigmey dorjee

    jigmey dorjee New Member

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    I’m new into commercial property and just have been researching, I’ve come across medical consulting properties in Sydney cbd for 475,000 which generate a net rental income of 23,000. Does this net rental figure include the loan repayments?
     
    jigmey dorjee, 5th Feb, 2022
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    No, borrowings are personal to your situation. Who knows how much you are borrowing?
     
    Scott No Mates, 5th Feb, 2022
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  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    It's not an important question as you should be verifying the actual figures rather than relying on an ambiguous number given in the advertising.
     
    Peter_Tersteeg, 5th Feb, 2022
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  4. Indifference

    Indifference Well-Known Member

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    Agree with above comments and note that net should be income less fixed cost outgoings.

    to start, you need to check the gross income, the lease contracts (terms, length, how secure tenancy is, what outgoings are in lease etc...), utility arrangements (pro rata arrangements for multi tenancy & common areas) fixed cost outgoings (rates, strata, insurance etc), any common areas (what are costs/arrangements for these)..... and of course, the rest of your DD related to the property / building.....
     
    Indifference, 5th Feb, 2022
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    Beano likes this.