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Hi Another newbie from Sydney

Discussion in 'Introductions' started by Maalamaal, 29th Apr, 2016.

  1. Maalamaal

    Maalamaal Member

    Joined:
    20th Apr, 2016
    Posts:
    9
    Location:
    Sydney
    Like most of the newbies here I am referred by a good friend of mine when i was asking him abt IP's.
    I am looking for some guidance in commercial property investments
    How do we buy them/
    where do we see the silent listings?
    how do we negotiate?
    Any recommended goo buyers agents for CIP
    all possible things that I need to educate myself in.

    All your help is is very much appreciated.
     
  2. Jerry O

    Jerry O Well-Known Member Premium Member

    Joined:
    21st Jun, 2015
    Posts:
    360
    Location:
    NSW / Melbourne
    Hey! Welcome to the forums! Have you been investing in Residential IP before and now venturing out to CIP?
    The forums has talked about CIP a lot. Just do a quick search and you'll find most of questions has been asked already.

    Check out this thread about CIP that started yesterday.

    Commercial Property - newbie question
     
  3. Maalamaal

    Maalamaal Member

    Joined:
    20th Apr, 2016
    Posts:
    9
    Location:
    Sydney
    Thanks Jerry. I did buy couple of residential IP but I am not happy with the returns.
    I had been buying and selling vacant land blocks before.
     
  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Welcome @Maalamaal - what sort of returns are you seeking?
     
  5. Maalamaal

    Maalamaal Member

    Joined:
    20th Apr, 2016
    Posts:
    9
    Location:
    Sydney
    Thanks Steven
    I am getting hardly 3-4% in Residential
    I heard that commercial get a good returns so want to make my hands dirty in commercial
     
  6. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    685
    Location:
    TAS
    Welcome! Don't necessarily dismiss residential returns. There are heaps of areas offering much better returns than the ones you mentioned.
     
  7. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Sounds like you're buying big houses closed to CBDs :) Nothing wrong with that but yeah, yields are not great.

    Lot of my clients (with a focus on cashflow) are picking stuff up returning 7% from day one. Those willing to put a few dollars in at the start and do a small reno for cashflow are getting 8-9%. Still not quite at commercial returns, but with far lower levels of risk.

    I reckon down the track I'll add commercial to my own portfolio but not until it would account for a small percentage of my total portfolio.

    I'll be interested to see what you discover about CIPs. I don't know a great deal at present.
     
  8. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Gday Maal, welcome aboard.
    Some like Steve McKnight advise a strategy of heading to commercial investment after you've built some capital with residential. CG can be better with residential, whereas commercial yield can be more useful towards the end of your journey.
    Might be worth taking a look at some of his books.
     
  9. Maalamaal

    Maalamaal Member

    Joined:
    20th Apr, 2016
    Posts:
    9
    Location:
    Sydney
    Thanks for the suggestion Azazel