What's your weekly total combined gross rent ?

Y'all still making me want to buy commercial properties.

 

I was looking at places like the one I used to live in, they were mixed use but commercial for a loan. Shop on the bottom, apartment on the top, $800-1.2m each, $40-60k yield. I kind of got stuck on the 30% deposit bit. Also they were mostly in awful condition and you'd have to factor in some fairly hefty repairs down the track. Be nice in a portfolio though.

 

Its nowhere near 100m its only $40m ...Commercial has a high yield
Took 30yrs

 

It must be inter-generational !
Even with building a great business - or even several great businesses - 100 mil is pretty insane to accumulate!

 

Really, thought it would be much higher than 40.
40 is still spectacular though, good job.
Makes resi returns look stupid.
I definitely got to get some commercial instead of this low yielding resi stuff.....

 

The ones i like now is where the tenant pays 100pc of all costs (except interest and taxation) and no vacancies for ever and ever ....i am trying to move to 100pc portfolio like that!!

 

You are correct if it was residential it would be $100m and with interest at 4pc i would have to work 24/7 to cover the loss !

 

Yikes, @Ace in the Hole this poll needs to have a 50K+ bracket
@Beano ,you are stressing me out lol

 

Isn't land tax part of landlord outgoing on commercial properties? That's the case on mine.
Would you care to share about "no vacancies for ever and ever"?
I may have the financial capability to increase my portfolio close to yours, but I don't have the mental ability to do it.
I guess that's where experience come to place. Never know what another 20 years takes us to.

 

You're not alone there I'm guessing.

 

Very well done beano

 

Ok nearing 10k pw....once my 2 developments are done. and rented...has grown from something like 3.8k pw in 2010.

Nothing to write home about....don't think I will get to a $1m. Maybe 650-700k. Some rents ...like WA have dropped otherwise would be at 10k pw.

I am finding no matter what I do my yield around 4.5-5% (as property grows you are the lower end).

 

Mine is 0.32k per week. David vs Goliath
Well done Sash, impressive

Looking at figures from others I need to put my aggressive investor hat on and clean up some resi and commercial each week

 

Or read it aS mostly rental rather than weekly.

 

Ground leases ...a tenant that invests many times what i pay for the freehold is unlikely to ever default or not renew the lease
They have to leave the building behind
I say every and every but in reality it is not true. A large earthquake which can occurs every million years or so can destroy the land and the tenant will then do a runner
What the tenant pays is all in the lease

 

In the event of ground rental arrears you can cancel the lease and auction off the building.
If the tenant has a mortgage (24 of the 25 I have do have do) then the bank will pay the arrears rather than lose their security.

 

Beano, I'm sure you have a fascinating story that the rest of the forum would be interested in hearing, myself being one.

Whilst I think of it, would you consider a (possibly) allegedly forthcoming fire-sale price on a certain freehold piece of dirt in Townsville that might have a certain nickel operation residing on it, that might have an ownership change to a (former) staff and creditor arrangement, with a big dollop of govt funding (and maybe even a cherry on top)?

 

Trouble is with land is maintaining income and if there is no tenant or the tenant can walk easily then its not a good investment.
Although I am aiming to replace the bulk of my property portfolio with ground leases I rejected some that the land value equalled the property value as the tenant could walk.
I (the solicitor) have sent lease cancelation notices to tenants . All but one paid (together with penalties and costs) the one that did not the Westpac bank paid.

 

@Beano That's awesome. I like that kind of investments with the condition that they have potential growth.
Are you referring to warehouses?
I have done a ground leasing myself with a 20 year lease, they constructed the building, and at the end of the lease the building is ours. It's indeed one of those purchase and forget type of investment.

 

Yes same thing
I wish i started on these earlier ...i would have less grey hairs lol
Oh well never too late to start