Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

First commercial property

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Beano
    replied
    The Bayleys total property magazine has recent sales .
    Many of these sales show the yields https://www.bayleys.co.nz/totalprope...xoCIVsQAvD_BwE

    Leave a comment:


  • Scouser
    replied
    I would have thought yields are anywhere from 4 to 7% depending on circumstances. 3.8% seems rather low but I only buy/own in Hamilton (with a property in Warkworth) and they have higher yields so maybe that's right. Only been at it for 5/6 years and even in that time it seems yields have reduced a couple of per cent. On the one hand it feels like we're near the top of the market but with all the cheap money sloshing around and the expected influx of residential investors fleeing from Labour's punishment regime the market may compress further. Hard to work out. I can't help but feel we're going to get a correction at some point in the next few years as we've seen a lot of capital gain but it's always hard to pick the top of a market.

    But to give an idea of yields just sold small industrial (~$800K at about 5% yield) and bought vacant office (($1m+) at what we hope will be 7% yield both in Hamilton.

    Leave a comment:


  • Beano
    replied
    Originally posted by GenY View Post
    Hi all. If a commercial property rents out for $70k + gst per annum what is purchase price likely to be. In Auckland and an office used by a service provider with long term lease. Sorry newbie getting my head around cap rates and valuations etc
    For a office it may be about 7.5% cap so based on a gross rental of say $70k outgoings of $10k (carried by the landlord) a price of $800k

    Leave a comment:


  • GenY
    replied
    Hi all. If a commercial property rents out for $70k + gst per annum what is purchase price likely to be. In Auckland and an office used by a service provider with long term lease. Sorry newbie getting my head around cap rates and valuations etc

    Leave a comment:


  • chook
    replied
    Even though he is a dinosaur, Olly Newland has some really good books about his endeavors with Commercial property and he likes a good laugh, probably your local Library is a good bet.
    With the 3.8% yield, I would work out a price based on a yield you are happy with (over 4% at least!) and go back to the agent with it saying you need this yield for the deal to work for you, as you are looking at a couple of other deals also...

    Leave a comment:


  • Keys
    replied
    Just had an offer accepted at 6% yield. Very small >$150k outlay.

    Leave a comment:


  • GenY
    replied
    Agent suggests a rental yield of 3.8% based on the advertised purchase price. Is this the current market rate in Auckland for commercial property at the moment?

    Leave a comment:


  • GenY
    replied
    Beano thanks
    I’m looking to purchase in the $1.5-2M range-
    thanks those numbers giving me some understanding of the market

    Leave a comment:


  • Beano
    replied
    Originally posted by GenY View Post
    Hi all. Haven’t been on here for a while. Decided to take the plunge and move away from residential and consider a commercial property in Auckland. Would love to hear tips and suggestions from the experts here. My understanding of commercial property is you need deeper pockets and getting the right tenant locked in long term is important. I’m looking in the $1.5-2M range. What is an acceptable market yield these days? I’ve been looking at new light industrial in west Auckland. GenY
    A Bunnings store in Auckland had a 3.93% yield
    The rental was $2.1m pa so slightly above your $2m rental range.
    I can imagine a blue chip property like this would have finance at sub 2% pa
    Last edited by Beano; 14-06-2021, 07:19 AM.

    Leave a comment:


  • GenY
    replied
    chook Thanks. Any threads or books you recommend I read? I am a business owner myself so I understand the tenant pays for all outgoings- which is an attractive proposition. I read once near new factories in good areas are a good starting point? I’m not keen on retail or offices with Covid still around. Thanks GenY

    Leave a comment:


  • chook
    replied
    You are on the right track GY, no new Govt exemptions with Commercial so there will be an influx of residential investors looking at this option, industrial is a good option and anything over 5% is good.

    Leave a comment:


  • GenY
    started a topic First commercial property

    First commercial property

    Hi all. Haven’t been on here for a while. Decided to take the plunge and move away from residential and consider a commercial property in Auckland. Would love to hear tips and suggestions from the experts here. My understanding of commercial property is you need deeper pockets and getting the right tenant locked in long term is important. I’m looking in the $1.5-2M range. What is an acceptable market yield these days? I’ve been looking at new light industrial in west Auckland. GenY
Working...
X