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.