Past examples of past purchases
Suburban medical centre
This was a long established medical centre. It was purchased from doctor who owned the practice and wished to sell the real estate. A new 5 year lease with options was negotiated, net yield of over 8 per cent and fixed annual increases. The property was purchased in a self-managed superannuation fund. There was potential upside for redevelopment of the property.
Regional office accommodation
The property was a strata unit on the top floor with a long term lease to the state government. It was a gross lease with fixed annual percentage increases. The net yield was over 8 percent. The property was purchased in a self-managed superannuation fund. One of the future potentials for this property was to split the tenancy into two. Electricals and air conditioning had been set up for such a future event.
Another medical Centre
The practice had recently been bought by a national company and the property was purchased from a couple of doctors in the practice. The strata unit is in a building, known in the area as the medical centre. The property had a net yield of over 8 percent and fixed percentage increase each year. This was another purchase in a self-managed superannuation fund.
Client was after cashflow and development potential on a limited budget (under $500,000). Some of the over 30 storage units in the complex were rented to local council and solicitors. While the majority of the sheds were rented, there was potential to increase the cashflow by renting vacant sheds.There was also a good area of land that had potential in the long term for more sheds and in the short term as storage areas for boats, caravan, containers and trailers. Yield was over 9 percent.
Fringe Central Business District
Within walking distance to the GPO, this strata unit was the office to a firm of solicitors.Net yield over 8 percent.
Brand new lease
The vendors got upset that I was making enquiries around town. The vendors had recently purchased the property, found a new tenant and were on selling the property so they were concerned about what I might uncover when I was speaking to people. My clients were based in Western Australia and wanted to buy a property in their SMSF. Property was secured quickly, new long term lease with options and fixed percent annual increases. The tenant had only just started the fitout of the premises at the time of purchase. We organised a local property manager to manage the property for our clients.
Suburban shopping centre
This was an off market deal, the vendor not wanting the tenants to know of the sale. There is a good mix of tenants including convenience shop, hairdresser, laundromat and professionals. On behalf of our interstate client, we organised building and pest inspections, fire safety and asbestos inspections and a local property manager to manage the property after settlement. Net return was over 8 per cent.
For past clients, the prices range has been from $300,000 to around $12 million but for most first time investors, the price ranges from $750,000 to $1,500,000