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How would you value this?

Discussion in 'General Property Chat' started by Joshwaaaa, 10th Jul, 2016.

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  1. Joshwaaaa

    Joshwaaaa Well-Known Member

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    Location:
    Adelaide
    We are looking at "lifestyle" type properties 10acres or so as ppor. Now we look at one today no price listed, i have a fair idea of where i would price the home+land.

    The issue is it currently has a contract for an nbn tower to be constructed in one corner of the property (40sqm or so well away from the house and neighbours). This contract pays the owner $9500 per year with a 3% increase per year over the next 20 years. Averages out to 12700 a year and a total of 255,000 for the 20 years. A nice little income stream and would assume you'd get a decent nbn connection lol.

    If you were to put an offer on something like this what would this do to your offer $$$ wise, add to it?take away from it?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
    Sydney or NSW or Australia
    • What are NBN Co installing?
    • What are their rights to access?
    • Who builds, replaces and maintains the track/road?
    • How is power provided (overhead/underground)?
    • Is there fibre to the site or via microwave?
    • What are the make good provisions?
    • What are the subletting rights?
    • Are there step up rights for other carriers?
    • Do you get incremental increases upon subletting?
     
  3. Newyproperty

    Newyproperty Well-Known Member

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    Location:
    NSW
    I wouldnt have an nbn tower in my backyard for 12k per year.
     
  4. bob shovel

    bob shovel Well-Known Member

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    Get a Nokia 5110 thrown in and you've got a deal and a half! :D

    Those health risks are all a myth aren't they. Depending where you are looking it may scare people off, keep sniffing around with the agent. Lifestyle blocks depends on who loves the block the most and how much the wife wants it :D
     
  5. mcarthur

    mcarthur Well-Known Member

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    Also, check the contract for start date. WE've seen a contract for wind farms where the income starts when the last tower goes live. Check the NBN whether you'd be paid at commencement of work, or when it's turned on - there can be quite a difference in time!
     
  6. Selinarra

    Selinarra New Member

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    19th May, 2016
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    Location:
    Melbourne
    Don't forget that tower is rateable and you will have to pay rates on it.