Goldcoast commercial property?

Discussion in 'Commercial Property' started by Tenex, 31st Jan, 2018.

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  1. Tenex

    Tenex Well-Known Member

    Joined:
    14th Aug, 2015
    Posts:
    570
    Location:
    Sydney
    I am looking for commercial property in under a half a mil range. Something with very decent rents, low vacancy but also some potential capital growth.

    Sydney is obviously expensive due to it's attraction but it was suggested Melbourne and Goldcoast may offer some good options.

    Any thoughts? what are the better yields in terms of retail / front shop, vs warehouse vs other types of property?

    Also I have heard banks loan between 70% to 80% is this true or are you able to borrow a bigger portion of the purchase price?
     
    Tenex, 31st Jan, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,634
    Location:
    Gold Coast (Australia Wide)
    You and a million other peops ;)

    That's a very hotly contested space as resi yields come off and peops are more scared of high Pe ratio equities markets

    Typically well priced comm loans are in the. 65 to 70 range.

    Much depends if u want a set and forget loan or an annually reviewable risk

    Ta

    Rolf
     
    Rolf Latham, 31st Jan, 2018
    #2
  3. EricIP

    EricIP Well-Known Member

    Joined:
    8th Dec, 2017
    Posts:
    59
    Location:
    QLD
    commercial properties in GC..

    The net return used to be around 8~9%+ for retail or 10%+ for warehouses/showroom but in the last 2 years the yield has dropped by around 2~3%.
    tenanted retail properties in a good retail strips are now going for at around high 5% ~ mid 6%.
    I've been in the market for 2 years and witnessed the yield drops while waiting for the right one to come on the market and came to the conclusion that it's not worth to put our money in GC commercial if the net return is not better than 7%+ and started checking brisbane CBD areas instead. (starting from mid 5% ~ low 6%)
    Considered vacancy risk, CG upside, tourism risk and etc.
     
    EricIP, 1st Feb, 2018
    #3
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