What would you buy for 5 mil ?

Don't forget, NZ also has a few goldmines as well. Pub / Hotels are good to get into, as are Caravan Parks. NZ is also close for a holiday (if you have time for one) snow skiing, water sports etc and is starting to become a tourist mecca, South Island especially. You generally have a few options available, ie; leasehold or freehold. Setup of Business or Company registration is mandatory as is a TFN. You dont have to reside there to operate.

 

Not sure - $5m doesn't get as much as it used to any more. Perhaps an opportunistic CBD/inner city high rise development site, if you are lucky.

 

Knowing what I know now I would be targeting commercial in USA? minimum 10%+ yields, probably wont need to spend $5M.

 

I assumed from previous posts that you were clearing $300K gross (passively) from your IPs with bugger all LVR and no PPOR debt. Would've thought that was enough (to do nothing)?

I understand the concept of learning more and expanding your horizons etc but perhaps its time to answer the 'how much is enough' question, and will another $100-200K make you any happier.

 

This post is over 2 years old and we still haven't bought anything, in fact, haven't bought anything for over 6 years, so we are not rushing in to make as much money as fast as possible at all.

We certainly do have enough "to do nothing", but doing nothing would be boring and unfulfilling.

More money may not bring more happiness, but it will provide more options and opportunity moving forward.

If making more money at this stage required sacrifices in quality of life, then I would not persue it, but buying a commercial property or other passive asset is a one off transaction requiring very little work.

 

Well you sound you've very hard to build your biz from scratch and perhaps its time to smell the roses now and follow your heart whether it makes money or not - regardless of what it is. That was the point I was trying to make.

A $5m commercial property will possibly give you say, $30-40K pa net cashflow max let's say (if it wasn't a risky commercial vehicle eg a prime positioned freehold warehouse in say, Marrickville).

Might be a go-er for someone starved of cashflow but equity rich....and possibly be of less utility to someone in your position (who already has both).

 

Can't happen soon enough...
Got 27 more days of work to go then free to do what I want when I want.
Investing is just a hobby for me.
Don't have money on my mind and have not had for years now.

 

You're figures are a shade low - 70% loan is $3,500,000. 6% nett return is $300k and i/o loan is $210,000

At the least there's $70-90k to play with.

 

Hi @Ace in the Hole - loads of good posts above I won't repeat. Because this is a fun post here are several brief observations with things I would consider were I looking to spend $5m for a decent CF return.

1 - The only part of Sydney that would interest me would be something near the proposed airport.
2 - SEQ particularly near the best infrastructure nodes would get a close look too (ie Coolangatta or along the GC/Bris corridor.
3 - In light of changing workplaces, shopping habits and robot everything I think flexible zoning light to medium/ warehousing industrial sheds near fantastic transport would get my focus above retail or office space for the coming decade or 2.
4 - For a way out of left field option have you considered agricultural? Has drought risks of course but solid income plus hefty CG plus subdivision opportunities can make a few thousand acres of productive land managed well an attractive option.

 

Good post BA !

Do you have clients looking at Ag properties with a view to value add , change use , subdivide etc ?

 

A current client is looking at pure buy and hold, I am showing them blocks with subdivision options so they have more exit strategies but they are probably long term.

 

Settling next week.
Free standing warehouse with yard space local to us.
Yield is nothing special, but it was convenient and have a tenant signed up for a 5+3 when the current lease expires soon.

This is the most stressed I've ever felt before over a purchase because left the finance a bit late.
Not super stressed, but it has my full attention at the moment as we have to settle this before finance is approved to avoid hefty delayed settlement costs.
A bit of drama makes it interesting anyway.

 

Definitely get your banker or broker to escalate everything on the finance side!!! hopefully all the fees don't add up too much mate!

 

We’re actually setting first to avoid the late settlement penalties.
Thank god for offsets.
Once finance is cleared we will be paid back rather than the vendor.
Didn’t want to do it this way but account worked out a way that won’t cause tax issues later.

 

Thread is quite old now but this seems interesting .

Quality agricultural land with multiple titles and potential subdivision and CG . No one is much interested in this asset class on PC but some of our wealthiest citizens certainly are !

 

Sounds good, out of curiosity what was the net yield on that purchase, including taking out the 5.5% agent fees & the interest rate on the leveraged part of it?

 

WTF - I know plenty of serious investors who don't touch residential property. Why? Higher land value and land tax liability vs commercial with low LV, higher net rental.

 

Hi

Very naive comment, you would be surprised what some us have done, are doing and are intending to do.

Regards,

alicudi

 

I hear not long now until your new Tennant moves in Ace ?