Commercial Property - Very Little For Sale.

[Wayne]

Speaking of rent holidays - make sure it is a rent holiday not and rent AND outgoings holiday.

[Davo36]

Wayne where is this property located in the country?

Ivan, yes of heard of that case but I thought they were able to cancel the lease using the Quiet Enjoyment clause in most leases.

Hec, yep there are heaps of these kinds of things that go on in the commercial property world, so you have to be very careful.

[Wayne]

Hamilton of course.

[Davo36]

Hamilton of course.

Hamilton can be a bit tricky. Not sure why. But seem to hear stories like this about Hamilton.

I think you're doing the right thing by letting at a lower rate and building it up over a period of years. Hopefully you'll be back to where you were shortly.

[DaveW]

ok I'm in a position to buy something.

I don't buy into the negativity about different areas going this way and that way, lets just leave that to the daily b***sh*t newspapers. Commercial property doesn't make good reading to the general public.

My buying rules are typical. Location, split risk, and add value. If you have to buy at a low yield to tick those boxes then that is what I do. Negotiate terms if you can't afford it.

Even if you are a passive investor I still stick to those rules. Rents are going to increase.

[Maccachic]

The Commercial leasing / sales guy I know in Tauranga is getting pretty busy these days.

He was saying there is a large block of property here which is on leasehold land, the rent for land has increased 30-36% over 5 years depending on who was negotiating for you. Heres another http://www.nzherald.co.nz/business/n...ectid=10797679

[Davo36]

ok I'm in a position to buy something.

I don't buy into the negativity about different areas going this way and that way, lets just leave that to the daily b***sh*t newspapers. Commercial property doesn't make good reading to the general public.

My buying rules are typical. Location, split risk, and add value. If you have to buy at a low yield to tick those boxes then that is what I do. Negotiate terms if you can't afford it.

Even if you are a passive investor I still stick to those rules. Rents are going to increase.

Oh well, let us know how you go.

[DaveW]

Maybe I should create a blog for subscribers.

[Flipper]

Should commercial investors still assume that the normal yield is around 10%, and that today's market is extraordinary?

[DaveW]

Define "normal".