Yes my biggest concern with commercial property ....at the mercy of the tenant unless it's bluechip location...looking at property investments currently in the lower south
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Yes my biggest concern with commercial property ....at the mercy of the tenant unless it's bluechip location...looking at property investments currently in the lower south
Thanks Roger et al for putting time in here..So its just another short term too good to be true, highly geared single building tarted up spruik.:)
My only pure play prop holding is TIX on ASX holding a bunch of ind buildings in great locations with diff tenants, then AOG retirement village operator . cheers jt
8% is not the property's yield. That is the cash return to investors. I reckon the LPTs are better, especially to high tax payers as they are all PIEs. Better return and liquidity which just doesn't exist with proportional titles. And risk spread over a range of buildings. Very tricky things these proportional titles.
Contract rent well above market levels should get alarm bells ringing
Everyone is just being a teeny bit negative here. It reminds me of some people who talk about 1987 when you mention shares. After buying the share in the Lincoln Rd Mitre10 I also bought a share with Maat Consulting in The Hub shopping centre in Whakatane, and am looking at getting a couple of shares in an industrial building near the airport with a 15 year lease in place and yield of 8.2%, again with Oyster. Been very happy with the regular payments that I keep receiving. This last one I've borrowed the money by topping up the mortgage on a rental property, fixed the loan for 5 years, and I'll pay it off over 5 years using the income of the new building as well as the first 2. I don't need the income (yet) so I'm happy to acquire a share in another building this way. As far as I'm concerned it is just another way to invest with its own risks and rewards.