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Talk me out of this

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PNGMK
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Talk me out of this

Postby PNGMK » Fri, 31 Mar 2017 4:40 pm

I'm done with Singers.

I'm thinking of moving to FNQ.

These are available:

https://www.domain.com.au/7-blain-stree ... 2011040103

https://www.domain.com.au/6-william-str ... 2011226623

I thinking of living in one and rent the others out.

Also this is available (and I can get the Franchise). Running a parts counter would be 100% ok by me.

https://www.domain.com.au/4-william-str ... 2013478113

I can do this all with cash (sell up here and some others).
I have gay, black, Asian friends and then JR8.

bgd
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Re: Talk me out of this

Postby bgd » Fri, 31 Mar 2017 4:57 pm

A lot of Australians there... 8-)

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Strong Eagle
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Re: Talk me out of this

Postby Strong Eagle » Fri, 31 Mar 2017 10:25 pm

You should become absolutely, totally familiar with the financial metrics of commercial property. Anything that has been on the market for a while has something strange in its financials or it would have been snapped up a while ago.

I've been looking for 10 to 30 unit apartment complexes. Most I've seen don't fly because they are overpriced, meaning the cap rate and NOI are too low for the money invested.

I found some links when I was learning that you might find useful. Even if you are considering an all cash transaction you should know all the metrics because, unlike residential properties, the sale price of commercial properties is all about return and you don't want to pay too much.

There are also plenty of "Gotchas" when it comes to taxes, insurance, deferred maintenance, and government regulations of which you might not be aware.

https://www.propertymetrics.com/blog/20 ... /cap-rate/

https://www.propertymetrics.com/blog/

https://www.propertymetrics.com/blog/20 ... eld-ratio/

https://www.propertymetrics.com/blog/20 ... atio-dscr/

https://www.propertymetrics.com/blog/20 ... at-is-npv/

https://www.propertymetrics.com/real-es ... checklist/

https://www.thebalance.com/net-rental-y ... rs-2866812

https://bayapartmentbroker.com/apartmen ... ssessment/

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PNGMK
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Re: Talk me out of this

Postby PNGMK » Sun, 02 Apr 2017 9:47 am

Thanks SE. Some of that I knew, some I didn't.

The single reason these properties are hard to move is Aussie banks are resistant to lending outside the major CBD's now. Second I absolutely agree they are overpriced and I if I offer anything it was going to be a basic multiple of the returns less cost (Operating Profit). With the banks refusing to move these properties are already 'cheap' but should be much cheaper. As you also mentioned deferred maintenance is a concern with at least one of these properties as well. The final gotcha is that I doubt any of these props have much capital growth potential and are in an extremely illiquid position - so once I commit - that's probably it for life.
I have gay, black, Asian friends and then JR8.

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zzm9980
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Re: Talk me out of this

Postby zzm9980 » Thu, 06 Apr 2017 11:41 am

I have nothing valuable to say except that that town sure looks pretty, at least from some of the photos in the first two links.

movingtospore
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Re: Talk me out of this

Postby movingtospore » Sun, 07 May 2017 5:09 pm

I'm done with Singers too. Leaving in a couple months. Good luck to you!


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