Why Commercial ?

"Risk free asset" ?? Really. Used car salesman that one.
Some decent yeilds in there above 7%. Thanks for the info.

 

There are almost "risk free " investments but in reality no investment is "risk free" .
Even the safest government bond has the risk of losing its value through inflation.

 

Apologies about digging this thread out from its resting place - Mods please feel free to move or delete.

1. Is the above (carparks, tradie units) still valid during COVID-19 ?
2. What kind of commercial deals are stacking up today and into near future till vaccine is found ?

Would be great if people can share some recent numbers/examples of commercial purchase.

 

The target markets in these times are

Doctors, pathology labs, dentists and similar professions.

Retails with hairdressers and small grocery or bottleshops.

A friend just bought a block of 2 in qld at 6% net returns with a dentist and pharmacy.

It is on lom leases with businesses still interested to extend for a good period of time.

However, i believe he was able to negotiate well.

Regards

 

If you think this pandemic is ending soon, they're all probably decent buys. Then again suburban commercial is really hard unless you have a development angle. Not really my thing

 

Not done a deal since 2016!

 

Noting this is an old post/thread, please define "strong yields" & note that outgoings can vary greatly ie. The amount & who pays

 

@Beano enjoyed reading this old thread. Thanks for sharing your experiences.

 

@Beano Doesnt need to keep doing deals !!
Well done Beano !I assume you are just reducing debts now with all those rents?!!

 

And working on the rentals. There have been many tight years where it has been difficult to lease.
The times have changed now and with a bit of work I have been improving tenancies and increasing rentals.

 

What are the main difficulties @Beano?
-Industrial or more office & retail due to the internet etc ?

 

Retail is struggling and it is hard to get solid growth in the rental (some of my retail still pay the same net rental we struck 15 years ago!)
Office market has too many big developers and investors that seem to be able to give big incentives to tenants. The offices tenants are like teenager with a Iphone . They all want the latest premise so your profits are having to be re-invested into depreciating assets.
Industrial has been the best performer as the tenants want only the basic facility.

 

Is too way too risky to look at buying commercial/industrial

I would like to start looking at this???

thanks

 

It just takes alot of looking, lurning & tyre kicking to get a deal that you're happy with.

 

Hi Beano

Dont mind share some of your experience on how to pick/invest in industrial. Also, like who to rent to, size of the place, indication on what's $/SQM as good value?

Location? I am sure location location location for industrial is very different to residential/office/retail?

Whats the average vacancy period if tenant left?

Cheers
wooster

 

How long is a piece of string? It depends on the state of the economy, vacancy rates, incentives, quality of agent, terms on offer and a million other variables.

Eg. 50-100m2 units may be suitable for someone who is stepping away from the garage into their first industrial unit however there are hundreds of similar ones to choose from and nothing to differentiate one from the other other than price/access/location/signage/security/zoning etc. These are cheap as chips but competition/alternatives may also be greater and the property sits vacant for 6+ months.

Bulky goods sites/logistics space 10000m2+ these may sit vacant for years as there are few users who may require this sort of space, incentives may run high etc.

 

right, I guess... need a deep pocket/a business requirement in this industrial game...

 

interesting Beano -thanks for Yr wisdom !
we are focusing on small industrial tilt slab lately

 

Thanks Scott !
Good advise again

 

Is there likely to be a shortage of these tilt slab units in a few years?