Government lease - yay or nay?

Discussion in 'Investment Strategy' started by JeremyC, 6th Jul, 2016.

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  1. JeremyC

    JeremyC Member

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    30th Jun, 2016
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    Sydney
    have been a long time follower of government leases those that is guaranteed x years of lease with optional y years.

    Wondering if anyone here has any experience/comments on this sorts of investments.

    Because the leases are signed and agreed upon, will the lenders take into consideration of the rental income and assess more favourably?

    A lot of these properties are on auction, I wonder how they all end up ie most likely end up paying a premium？guess I should visit these auctions some day.
     
    JeremyC, 6th Jul, 2016
    #1
  2. big max

    big max Well-Known Member

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    Gold Coast
    I say yay at the right price. I would think govt lease often is at a lower yield as you get the benefit of a very reliable tenant.
     
    big max, 8th Jul, 2016
    #2