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  1. #11
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    Yeah "Bias concealedin the fake vinyl white cloak of truth"

  2. #12
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    This top grade newish building leased to telecom also sounds great .$50,000 min investment , great location rent reviews etc etc., 8% yield PREDICTED. Other than the liquidity issues when selling , whats hidden in small print?

    Augusta opens door to Telecom's home

  3. #13
    Senior Member
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    Quote Originally Posted by Joshuatree View Post
    This top grade newish building leased to telecom also sounds great .$50,000 min investment , great location rent reviews etc etc., 8% yield PREDICTED. Other than the liquidity issues when selling , whats hidden in small print?

    Augusta opens door to Telecom's home
    Is this the same Joshua who won the piefunds comp? Hell, you can do a lot better than 8%.

    How long will it be 8%? Not long if interest rates keep on rising.
    No advice here. Just banter. DYOR

  4. #14
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    I need more income in my port. Appreciate an opinion from anyone who has read the article prospectus. The liquidity is a big issue. The five star green rated newish building,location and client are pluses as is 3% fixed annual rent increases for first 10 years. Syndication scheme has no fixed term and would be wound up if a min of 75% shareholders voted for it. Comparing it to what else pays 8% at the mo.? Don't personally like these structures and the devil is in the detail.

  5. #15
    ShareTrader Legend Beagle's Avatar
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    Sorry I haven't got time to read the full prospectus mate but one thing that leaps out at me, (apart from the fact that its managed by Augusta), is the high gearing (47% is high for commercial property) and the fact that the initial debt facility is only for three years. They will have done this to get the cheapest interest rate and put the maximum gloss on the deal. What will interest rates be in 3 years and how will that affect you net return in the future ? That and the way Augusta manage this are your two key medium term risks from a very brief look. Long term its not exactly a vanilla style commercial building so what happens if Telecom vacate after their 10 year lease and they can't re-tenant the building ? Will that unusual styled building be in demand in 10 years ?

  6. #16
    FEAR n GREED JBmurc's Avatar
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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
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  7. #17
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    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. #18
    Legend
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    Quote Originally Posted by Joshuatree View Post
    This top grade newish building leased to telecom also sounds great .$50,000 min investment , great location rent reviews etc etc., 8% yield PREDICTED. Other than the liquidity issues when selling , whats hidden in small print?

    Augusta opens door to Telecom's home
    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.

  9. #19
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    Contract rent well above market levels should get alarm bells ringing
    Time is a great teacher, but unfortunately it kills all its pupils

  10. #20
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    Quote Originally Posted by Joshuatree View Post
    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
    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.

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