What questions to ask when buying childcare centre

Discussion in 'Commercial Property' started by hungusyd, 9th Feb, 2017.

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  1. hungusyd

    hungusyd Well-Known Member

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    There are two: one is business and the other one is the property that I'm looking at. Both are asking for yield of <6%, close to ~5% indeed. With these kind of amounts, it is really tempting to DIY actually. Not sure if that's an OK option though.
     
    hungusyd, 10th Feb, 2017
    #21
  2. Omnidragon

    Omnidragon Well-Known Member

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    Other childcares in the area. How many others have council apps being submitted?

    Bear in mind many second hand centres and old and rundown and will get killed when newer bigger ones come in.

    Mind you 5% yield is dismal...
     
    Omnidragon, 11th Feb, 2017
    #22
  3. thesuperman

    thesuperman Well-Known Member

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    How long is the lease for & options to renew the lease?
     
    thesuperman, 20th Feb, 2017
    #23
  4. yunginvestor

    yunginvestor Member

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    Hi mate, any chance I could get a copy of this list?
     
    yunginvestor, 18th Jun, 2017
    #24
  5. thesuperman

    thesuperman Well-Known Member

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    There's no way you'd get a 7 to 9% yield if you are buying the property only, not even in some regional place in the middle of whoop whoop. Some properties have been getting less than a 4% yield. In fact the lowest yield so far has been 3.6%
     
    thesuperman, 23rd Jun, 2017
    #25
  6. The Y-man

    The Y-man Moderator Staff Member

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    I believe my relos are getting over the 10% pa mark on the property only.
    (childcare - inner city Brisbane)

    The Y-man
     
    Last edited: 23rd Jun, 2017
    The Y-man, 23rd Jun, 2017
    #26
  7. Terry_w

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

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    a related party to me is looking at one with a 10.1% yield atm. annual rent/purchase price.
    Not going to disclose anything but advertised in realestate.com.au
     
    Terry_w, 23rd Jun, 2017
    #27
  8. thesuperman

    thesuperman Well-Known Member

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    Was it bought in 2017 or a number of years ago? Are we talking about net yields after all the outgoings are paid for by the tenant?

    Are we talking about net yields after all the outgoings are paid for by the tenant?
     
    thesuperman, 24th Jun, 2017
    #28
  9. Terry_w

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

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    See above, I mentioned it is yield based on purchase price. Annual rent/purchase price.
     
    Terry_w, 24th Jun, 2017
    #29
  10. The Y-man

    The Y-man Moderator Staff Member

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    Net yields based on purchase price 2015~ish

    The Y-man
     
    The Y-man, 24th Jun, 2017
    #30
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