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  1. #51
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by Kees View Post
    Bought a 14 unit property in February x motel complex now being used for long term rentals going extra well seems to be hitting 15% on purchase price
    less costs so very pleased with this.
    Sounds good ....been looking to buy something along the same lines ...

    Many look good from the outset but once you take out all the costs out (and the fact it's going to have a higher up-keep costs etc) the 15-20% gross yield ends up much the same as some 9-12% yields etc

    Commercial property certainly has many more issues around insurance NBS min rules etc ..
    Last edited by JBmurc; 23-05-2016 at 11:03 AM.
    "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

  2. #52
    Member Kees's Avatar
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    Quote Originally Posted by JBmurc View Post
    Sounds good ....been looking to buy something along the same lines ...

    Many look good from the outset but once you take out all the costs out (and the fact it's going to have a higher up-keep costs etc) the 15-20% gross yield ends up much the same as some 9-12% yields etc

    Commercial property certainly has many more issues around insurance NBS min rules etc ..
    Quite happy with 9-12% property was well looked after although we are slowly doing them up and lucky to have good management on site
    so hopefully no worries although with tenants specially residential there are always surprises.
    Insurance was ridicules specially earthquake cover is a wrought if I was a bit more adventurous I would not cover for that seeing the place is build like a brick sh3house (its actually block) and build by real tradesmen and material.
    the upkeep cost should be no different then stand alone units if not less because the tenants live in a close community they seem to look and take pride in their living standard but time will tell early days yet . Usually been into industrial buildings so a different kettle.

  3. #53
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    No Home or investment property... Trying hard to find one in Auckland tho with no luck

  4. #54
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    Quote Originally Posted by Kees View Post
    Quite happy with 9-12% property was well looked after although we are slowly doing them up and lucky to have good management on site
    so hopefully no worries although with tenants specially residential there are always surprises.
    Insurance was ridicules specially earthquake cover is a wrought if I was a bit more adventurous I would not cover for that seeing the place is build like a brick sh3house (its actually block) and build by real tradesmen and material.
    the upkeep cost should be no different then stand alone units if not less because the tenants live in a close community they seem to look and take pride in their living standard but time will tell early days yet . Usually been into industrial buildings so a different kettle.

    Don't assume that block will be immune to earthquake damage. Timber is the best material in a quake.

  5. #55
    FEAR n GREED JBmurc's Avatar
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    Yes looking into a industrial building with a couple of tenants in dunedin 100k under RV ... 10% yield .. tenants pay all costs ....banks talking about 1% cash back on purchase price
    "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

  6. #56
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    Quote Originally Posted by JBmurc View Post
    Yes looking into a industrial building with a couple of tenants in dunedin 100k under RV ... 10% yield .. tenants pay all costs ....banks talking about 1% cash back on purchase price
    Leasehold or freehold?

  7. #57
    FEAR n GREED JBmurc's Avatar
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    leasehold ..port of otago
    Last edited by JBmurc; 25-05-2016 at 12:41 PM.
    "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

  8. #58
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    Quote Originally Posted by JBmurc View Post
    leasehold ..port of otago
    Now Chalmers properties. Good luck.

  9. #59
    Member Kees's Avatar
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    Quote Originally Posted by fungus pudding View Post
    Don't assume that block will be immune to earthquake damage. Timber is the best material in a quake.
    Having gone through all of ChCh eartquakes I don't assume anything.

  10. #60
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by fungus pudding View Post
    Now Chalmers properties. Good luck.
    yes correct -http://chalmersproperties.co.nz/portfolio/dunedin/

    something wrong with them ?? looks like they own the vast bulk of the commercial land close to CBD/PORT
    of course they will continue to lift lease of the land reviewed every 7 yrs
    Last edited by JBmurc; 25-05-2016 at 01:29 PM.
    "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

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