Originally posted by DaveW
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Commercial Property - Very Little For Sale.
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Originally posted by Wayne View PostBut what happens when the return expectation drops back to a 'more normal' 8-9%? You lose capital value.Profiting from Property, not People
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Originally posted by DaveW View Post... thirdly increased yields is normally associated to market confidence and property is in high demand which in itself translates to higher real values, ...
Perhaps it was just the days of too much easy credit, both banks and finance companies?
Both thankfully no more.
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Originally posted by speights boy View PostHow do lower prices equate to confidence and demand?
Perhaps it was just the days of too much easy credit, both banks and finance companies?
Both thankfully no more.Profiting from Property, not People
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I didn't say prices go down, I was commenting on increased yields. Increasing yields leads to more spending, easier to obtain finance, which leads to increasing property and share market values. This is usually the time to be very cautious.Profiting from Property, not People
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By the way, I'm no economist but isn't this all common knowledge of property cycles?
The big unknown is the speed at which the cycle rotates at the varying stages.Profiting from Property, not People
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These two for sale look reasonable
The subject of this thread intrigued me. So I started looking around all of the centres to see what was available.
The only two that look semi decent are ones that I’ve found in Dunedin.
This one, which looks like a no brainer for a passive investor at 24 Filleul Street Dunedin: http://www.colliers.co.nz/Commercial_Property_16636/24_Filleul_Street_Dunedin/
And this one, which is industrial in a growing area 15 minutes from Dunedin at 9 Gladstone Road, South, Mosgiel:
http://www.colliers.co.nz/Commercial_Property_15134/7_and_9_Gladstone_Road_South_Mosgiel_Dunedin_Duned in/
I concur. Slim pickings out there at present."Measure Twice - Cut Once"
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Lol, I had thought the same thing, but won't.
SK, I know Takanini very well having sold commercial real estate there.
It's mostly pretty fine. Close to the motorway is a big reason.
Yes Mt Wellington/Penrose are better but everyone knows it, so you just can't buy in there right now.
Can you say what business the tenant is in? We might be able to comment on that.Squadly dinky do!
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Originally posted by Davo36 View PostLol, I had thought the same thing, but won't.
Takanini - the poor mans Mt Wellington?!
as in
Onehunga - the poor mans Ponsonby.
Interesting...
In any case - it does look like getting a good deal right now means looking away from 'prime' Mt Wellington/Penrose - unless you either pay top dollar or want to do some reworking of the building.
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I'm not rushing to Takanini.
Anyway, what I want to know is if its just a rental return you are after then why not do blocks of flats at a similar yield and be able to leverage to 80%?Profiting from Property, not People
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Originally posted by DaveW View PostI'm not rushing to Takanini.
Anyway, what I want to know is if its just a rental return you are after then why not do blocks of flats at a similar yield and be able to leverage to 80%?
Other reasons - long net leases - and tenants that can change a washer themselves.
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