This sale evidence just floored me.
- Bank in "prime retail" location (whatever that means...) in what looks to me like a pretty old building.
- Less than four years left on the lease.
- SOLD for 3.8% net yield
Somebody really, really, really wanted stability of cashflows for the next four years or so... I guess? Seriously, who buys this type of property at these prices? Someone who obviously doesn't have to borrow any money and really hates bank accounts but loves bank tenants I guess? Don't they know the world is teetering on the financial abyss - again?
Obviously not. Prime evidence of a bubble out there in CIP land! Be very careful!
Oh what I would do for that type of yield on medical centres in Perth right now! Might put a bit of a dampener on buying anything else though...
- Bank in "prime retail" location (whatever that means...) in what looks to me like a pretty old building.
- Less than four years left on the lease.
- SOLD for 3.8% net yield
Somebody really, really, really wanted stability of cashflows for the next four years or so... I guess? Seriously, who buys this type of property at these prices? Someone who obviously doesn't have to borrow any money and really hates bank accounts but loves bank tenants I guess? Don't they know the world is teetering on the financial abyss - again?
Obviously not. Prime evidence of a bubble out there in CIP land! Be very careful!
Oh what I would do for that type of yield on medical centres in Perth right now! Might put a bit of a dampener on buying anything else though...