Hi guys,
just accumulated some cash, wanna buy another property in the next month. I've been looking at some commercial property. It has quite good return from what i read, and some other advantages over the residential ones such as:
-Long term tenants ( up to 5 years or more)
-Tenants pay all of the outgoings
-higher rental yield
The advantages are easy to find, If you know any disadvantages, please tell me. I am thinking to buy the ones with ongoing tenants. Something like : 500k purchase price, 40k + gst rent, all outgoings paid by tenants, with 5 years lease. Seems like 8% return on Investment in the next 5 years. So what numbers are hidden in this ad? Maybe there is some cost hidden from that "all out goings paid by tenant" statement?
thank you in advance
just accumulated some cash, wanna buy another property in the next month. I've been looking at some commercial property. It has quite good return from what i read, and some other advantages over the residential ones such as:
-Long term tenants ( up to 5 years or more)
-Tenants pay all of the outgoings
-higher rental yield
The advantages are easy to find, If you know any disadvantages, please tell me. I am thinking to buy the ones with ongoing tenants. Something like : 500k purchase price, 40k + gst rent, all outgoings paid by tenants, with 5 years lease. Seems like 8% return on Investment in the next 5 years. So what numbers are hidden in this ad? Maybe there is some cost hidden from that "all out goings paid by tenant" statement?
thank you in advance
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