How to evaluate this property?

Great yield , Good find ...dental practices seldom shift
Just goes to show ...there are gems everywhere ...just need to look

 

You need both ..it is a combo of both ...if need to fund the loan then skew to yield if you have plenty of equity skew to CG ...otherwise a bit of both!

 

The main issue in my books were the shortness of the tenure to expire May 2017 but the upside is that there's 4 parking spaces and it's walking distance to St Leonards station. (mooted to change density too).

 

With return there's always risk and in this market there's a reason why anything is selling at yields over 6 - 6.5% yields

 

If the tenant renews or is replaced in short time with minimal vacancy/loss of rent, yields won't vary greatly in the long term. However if market rent is way below current or you suffer a long vacancy that initial yield is out the window.

 

Bingo!!

 

Very interested in NZ! Sounds like it would be much more flexible for investors. Has Auckland/Christchurch and surrounds historically performed as nicely as Melb/Syd?

 

I would say Auckland has outperformed Sydney by a long way over say 6 years as the currency has also moved
But who knows about the next 6yrs !

 

Does the existing tenancy agreement have an extension option? If not, have you started negotiating a new lease?

 

I didn't end up going for it.