Investing in property

Where do i start

There are many people who have prospered by investing in property, however, property investment can be risky and has high barriers. In addition to the large amount you pay for the property, there’s also stamp duty and other associated costs waiting to eat into your profits.

There also can be risks – for example, that you buy a property that is unattractive to tenants, that your property sits empty for long periods or that its value drops over time. Using a professional can dramatically reduce any potential risks.

Case Study

Client
Client’s goals – to diversify their property portfolio and purchase a commercial property within their SMSF.

The Brief
The brief was simple: to source and negotiate a commercial property in the Sydney Metro area which met the following requirements; prominent position, good yield, secure tenant, surrounded by established businesses, long-term lease, annual increases, sound building and good prospects for growth.

We regularly undertake acquisition and consultancy work in South Sydney and Alexandria. Our team boast an intimate understanding of the market and properties within the area and our experience working with owners in the area enabled us to approach one directly and secure an off-market, modern “High Tech” commercial property in Alexandria.

Outcome
The property purchase ticked all the requirements for our client. The property showing a 7.2% net return (remember this is less than 5km from the CBD), 4% annual reviews, 4 x 3 x 3 lease, tenant paid all outgoings, profile tenant, surrounded by prominent business in the vicinity (Redbull, Grounds Café, Fitness Australia, Pacific Brands, Suntory, to name a few).

Forecast
The planning authority is forecasting residential development growth to exponentially increase in the neighbouring suburb of Green Square. It is predicted to increase the demand for commercial space for SME’s according to industry reports