Hi,
I have had an offer accepted on a Commercial Property for $365K. The property is in Canberra. It has a land of around 900sqm. It has a warehouse building of total 400sqm. This is 2 levels, top level is 200sqm and bottom level is 200sqm. The property sloped down to the back and the two levels are not on top of each other and has their own access via big roller doors.
The property has a taxable land value of around $260K and the building is full brick. There is a tenant in their who is a friend of the current owner and is paying a rent of $20000 excluding GST which is very cheap. The lease is 1 year but the tenant is happy to only lease the back part (200sqm) for the same price so he is happy to modify the existing lease.
I am planning to have the back part rented while I use the front part of 200sqm for storing stock for retail shops I have.
Obviously the yield is only 5.5% and currently the tenant is not paying the outgoings. The outgoings are around $5K per annum.
I will be talking to few comm agents tomorrow to get an idea of what the rent should be if the whole property was tenanted in today's market.
I would like to get some opinions from others about this.
Thanks.
I have had an offer accepted on a Commercial Property for $365K. The property is in Canberra. It has a land of around 900sqm. It has a warehouse building of total 400sqm. This is 2 levels, top level is 200sqm and bottom level is 200sqm. The property sloped down to the back and the two levels are not on top of each other and has their own access via big roller doors.
The property has a taxable land value of around $260K and the building is full brick. There is a tenant in their who is a friend of the current owner and is paying a rent of $20000 excluding GST which is very cheap. The lease is 1 year but the tenant is happy to only lease the back part (200sqm) for the same price so he is happy to modify the existing lease.
I am planning to have the back part rented while I use the front part of 200sqm for storing stock for retail shops I have.
Obviously the yield is only 5.5% and currently the tenant is not paying the outgoings. The outgoings are around $5K per annum.
I will be talking to few comm agents tomorrow to get an idea of what the rent should be if the whole property was tenanted in today's market.
I would like to get some opinions from others about this.
Thanks.