James Dawson commercial property training?

Discussion in 'Commercial Property' started by Keen novice, 29th Mar, 2016.

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  1. Hamish1984

    Hamish1984 New Member

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    Thankyou I look forward to hearing hear from them.
     
    Hamish1984, 13th Mar, 2018
    #41
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  2. Student

    Student Well-Known Member

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    Within residential, you will likely get better yields with properties such as dual key properties or those in regional areas compared to non dual key or metropolitan areas (depending on the area). However, you will obviously need to assess the area as there is still risk of capital loss in some areas (for example, in mining towns after the end of the mining boom).

    Residential will generally be less risk than commercial. There is greater likelihood that you will be able to rent out a residential property, it may just be a matter of price. In commercial, you have the chance that the property can be vacant for long periods and you may need to bear costs such as debt payments during that time when there is no cash flow. People need a place to live but not everyone needs a business premises to rent. I haven't given up on commercial property yet as it generally provides higher returns than residential but maybe not with the risk return metrics I thought may be possible.
     
    Student, 13th Mar, 2018
    #42
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  3. Student

    Student Well-Known Member

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    Thanks. I was focused on the cap rate, but agree the discount rate is relevant as well. I was seeking to see whether at current purchase prices in the market whether you can actually get a cap rate of 8%. Are your cap rates based on current market values or prices based on earlier purchases?
     
    Student, 13th Mar, 2018
    #43
  4. The Y-man

    The Y-man Moderator Staff Member

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    Good question!
    I believe they were based on the last bank valuation.

    The Y-man
     
    The Y-man, 13th Mar, 2018
    #44
  5. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 13th Mar, 2018
    #45
  6. Student

    Student Well-Known Member

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    Student, 13th Mar, 2018
    #46
  7. The Y-man

    The Y-man Moderator Staff Member

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    I'm actually interested to see what it will sell for. The agents for some reason put it in the 2m to 4m price range - but I doubt you'd pick that up for 4m!!! I agree 7+

    Comparatively speaking though for a childcare, I understand that cap rate is a bit on the low side. People I know are doing childcare at 10%~14% (in Brissie though - so lower underlying land value).

    No idea re smaller props.....

    The Y-man
     
    The Y-man, 13th Mar, 2018
    #47
  8. The Y-man

    The Y-man Moderator Staff Member

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    Worse - you may have you loan recalled by the bank if you lose your tenant (with 30 days to pay).
    See the other comm prop threads.

    The Y-man
     
    The Y-man, 13th Mar, 2018
    #48
  9. Student

    Student Well-Known Member

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    I checked with the agent. Price indication was $11 million, implying a cap rate of around 5%+, but with the market as it is this could even be a higher price and lower cap rate. Not quite meeting target returns!
     
    Student, 14th Mar, 2018
    #49
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  10. Strawb

    Strawb New Member

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    Strawb, 24th Mar, 2018
    #50
  11. Strawb

    Strawb New Member

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    @Jack95 Hi Jack. What sort of progress have you made with this course? I checked out the webinar today (hence the search for online reviews). As I'm new to this forum I don't know the process for messaging you directly. However, I'd be keen to have a proper chat if you're up for that. ;-D
     
    Strawb, 24th Mar, 2018
    #51
  12. leicachamp

    leicachamp Well-Known Member

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    I am interested if Helen actually purchased all that property in such a short space of time. The Low Doc loans on leaseback sounds very interesting. Havent seen any brokers here comment on this subject.
     
    leicachamp, 10th May, 2018
    #52
  13. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Do a search
     
    Terry_w, 10th May, 2018
    #53
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