Better than 7.5% return on investment! No wonder the competition for rural commercial properties is keen.

Commercial properties showing a significant return on investment are always in demand, but that demand has been even stronger in recent months. So strong, that Rural Property NSW has sold three solid commercial properties in Narrabri before they were even advertised.

Purchasers are seeking five main criteria:

  1. Modern building;
  2. Tier 1, regionally strong tenants;
  3. Minimum 3 year lease;
  4. Outgoings positive; and
  5. Minimal risk.

Highway proximity is also viewed favourably.

We are receiving consistent enquiry not only from investors, but also from farmers looking to drought-proof income streams utilising related industries that they understand.

The combined quality of the premises and lessee generally dictates the return on investment and we are seeing returns of between 7.5 and 9.5% per annum based purely on lease income.  Capital growth is additional.  At these figures we expect demand for rural commercial properties to remain high.

Posted on Monday, 09 July 2018
by Michael Guest in Latest News
Commercial Return on Investment
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