NZ Retail property auction result.

[fungus pudding]

Anyone attend the Bayleys auction ? Touted as 75 million $$ portfolio for sale - there were several retail properties in Auckland and Tauranga. Caught a glimpse of the report on TV's John Campbell show but didn't catch anything about yields. Any info from anyone?

[Kees]

http://www.propbd.co.nz/afa.asp?idWe...5&SID=87064880

try this

[winner69]

Amazing prices the vendor got eh

So commercial prop one of the safest investments around at the moment based on these yields

[fungus pudding]

http://www.propbd.co.nz/afa.asp?idWe...5&SID=87064880

try this

Thanks for that. Suprisigly low yields - especially while the govts. policy on depreciation is still up in the air.

[Steve]

Thanks for that. Suprisigly low yields - especially while the govts. policy on depreciation is still up in the air.

Of course, basing an investment decision solely on the tax benefits is a novice mistake...

[fungus pudding]

Of course, basing an investment decision solely on the tax benefits is a novice mistake...

True, but it will have an effect if they proceed as indicated (although I'm starting to have my doubts that depreciation will be disallowed). It certainly drives residential property investment which in my neck of the woods has come to a screeching halt. I've come across the odd residential investor genuinely delighted and glowing with cheer because they're losing money.

[loofa]

Suckers?
Most of the listed PTs have passing yields above 8% with more substantial tenants as well.

[fungus pudding]

Suckers?
Most of the listed PTs have passing yields above 8% with more substantial tenants as well.

Yep. And with the real advantage of being PIEs. They're a gift, but don't tell anybody.

[loofa]

Yep. And with the real advantage of being PIEs. They're a gift, but don't tell anybody.

And as I pointed out on another thread , if you have the bottle, you can gear them up with a mix of shares and CFDs.
This is because although the yield is 10%+ the financing cost is much lower and it works if you are a trader.

[fungus pudding]

And as I pointed out on another thread , if you have the bottle, you can gear them up with a mix of shares and CFDs.
This is because although the yield is 10%+ the financing cost is much lower and it works if you are a trader.

Yes, but if you're an income investor just be aware of the sting in the tail of those dividend reinvestment plans, particularly when shares are selling, and therefore being issued to the scheme participants, at a huge discount to NTA.