First development.. Net Returns and Depreciation

Discussion in 'Investment Strategy' started by Beano, 5th Dec, 2018.

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  1. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
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    Location:
    Brisbane
    Had a approach from a real estate agent wanting to put a commercial building on one of sites currently leased (but with demolition clause)

    1: What net return are most investors seeking on buildings (not the land) ?
    2: What depreciation are most investors using for commercial buildings 30 years ?, 40 years ? to write-off their outlay of the building ?

    Currently I like to recover all alterations and fitouts within the period of the lease plus a return of 7.5% on my outlay (amortised) .
     
    Beano, 5th Dec, 2018
    #1