Selling signage onto main road?

Discussion in 'Property Management' started by Jmillar, 5th Aug, 2018.

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  1. Jmillar

    Jmillar Well-Known Member

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    Hi there,

    I'm looking at buying a property which backs onto a main road. I'm wondering if I could put a sign on the back fence and rent it out to local companies..

    Has anyone ever done this? If so, how do you find them, what do they pay and how do you structure it?

    If you did a formal lease, would banks take this into account when calculating serviceability?

    Will the local council have something to say about this? (This one is in Logan QLD but also wondering about other councils).

    Thanks
     
    Jmillar, 5th Aug, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    council will have to have their share :)

    banks generally will start asking about commercial lending questions if we need to use the income

    ta
    rolf
     
    Rolf Latham, 5th Aug, 2018
    #2
  3. Jmillar

    Jmillar Well-Known Member

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    Come on Rolf I'm sure you can spin something creative for the banks!!!
     
    Jmillar, 5th Aug, 2018
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    been there b4 :)

    signage and 50 k a year 4g towers

    ta

    rolf
     
    Rolf Latham, 5th Aug, 2018
    #4
    JacM likes this.
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    You'll need a DA, if the usage is permissible.

    Has anyone ever done this? If so, how do you find them, what do they pay and how do you structure it?[/QUOTE]

    Have read a handful of signage leases, the valuations and leases are subject to non-disclosure statements. Valuation of this type of asset is very specialised.
     
    Scott No Mates, 5th Aug, 2018
    #5
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Seek legal advice. Council will require a DA but some old properties are excluded. I had one who went to Federal Court who upheld a pre 1930s right to signage was never terminated. Building had huge painted ads and so they put a billboard on top. Council couldnt stop it. Massive wall on main road. Mega penalties if u get it wrong
     
    Paul@PAS, 9th Aug, 2018
    #6
    Tom Rivera likes this.