Property Investment

isnot

just about houses…

Commercial

Industrial

Hotels and Motels

Other Freehold Businesses

Virtual Real Estate

Commercial

• Less volatile market• Steady growth• Longer term leases• Outgoings paid by lessee • Contract law (no tenancy tribunals)• The Lease determines the value not the media

The Positives

Commercial

• Smaller Market• Slower Capital Growth• Can be more expensive to enter market• Lower gearing

The Negatives

How to make money from Commercial Property ?

Find listed companies looking for long term premises :• Secure (Due Diligence) - Lease – Buy - Build– Hold• Secure (Due Diligence) - Lease – On sell

Create a solution for a growing business:• Canvas vibrant businesses– solve their growing pains

Buy problem properties:Bad lessee – Get them out and re leaseWorst building in the area –renovate

Buy - Strata :• Same as a block of units but easier• Can be done with sheds and skyscrapers

Unit 3 Perlan House, 50 Aerodrome RoadMaroochydore Qld 4558

Sale by Negotiation$295, 000 + GST/ $18,330 pa GST Outs

Floor Area: 143 m² Outgoings $5500

For Lease$18,330 pa + GST Outs

Example

Conveniently LocatedFor sale or for lease. Situated 5 minutes from the Maroochy CBD and the Motorway heading North and two minutes from the Motorway heading South. An almost new unit with 117 sqm of warehouse area on the groundfloor has high ceilings, roller door access and a toilet. There is 24 sqm of airconditioned mezzanine office area with a small kitchenette and another toilet for convenience. This unit is being sold at the right price in comparison with others within the same complex or on the market within a 5 km radius. An opportunity to purchase at this price won't come along again. The owner would consider doind a swap for a residential property. Currently tenanted on a month to month lease, therefore GST may or may not be applicable on purchase.

Unit 3 Perlan House, 50 Aerodrome RoadMaroochydore Qld 4558

Agents spelling

mistakes….

Original Offer Buy 295,000$ Lease 18,330$ Yield 6.21% 18,879.90$

Increases (cpi 3%) Year 1 Year 2 Year 3 Year 5 Year 6Year 7 Year 9Year 10Buy 295,000$ 295,000$ 295,000$ 295,000$ 295,000$ 295,000$ Lease 18,330$ 18,880$ 19,446$ 20,631$ 21,887$ 23,916$ Yield 6.21% 6.40% 6.59% 6.99% 7.42% 8.11% Gross ProfitIncrease In Value -$ 303,850$ 312,966$ 332,025$ 352,245$ 384,908$ 89,908$ 30.48%

New Lease + 20% Year 1 Year 2 Year 3 Year 5 Year 6Year 7 Year 9Year 10Increases (cpi 3%) Buy 295,000$ 295,000$ 295,000$ 295,000$ 295,000$ 295,000$

Lease 21,996$ 22,656$ 23,336$ 24,757$ 26,264$ 28,700$ Yield 7.46% 7.68% 7.91% 8.39% 8.90% 9.73% Gross ProfitIncrease In Value 354,000$ 364,620$ 375,559$ 398,430$ 422,695$ 461,890$ 166,890$ 56.57%

Increases (5% pa) Year 1 Year 2 Year 3 Year 5 Year 6Year 7 Year 9Year 10Buy 295,000$ 295,000$ 295,000$ 295,000$ 295,000$ 295,000$ Lease 18,330$ 19,247$ 20,209$ 22,280$ 24,564$ 28,436$ Yield 6.21% 6.52% 6.85% 7.55% 8.33% 9.64% Gross ProfitIncrease In Value -$ 309,750$ 325,238$ 358,574$ 395,328$ 457,642$ 162,642$ 55.13%

Motels

~ Outstanding investment opportunity

~ 30 year lease (from November 2008)

~ Rent $187,200 pa* net

~ Annual reviews to CPI plus scheduled market reviews

~ Well presented modern complex (constructed 2006)

~ 4 star 23 unit Motel

~ Superbly located directly opposite Nambour General Hospital

A very rare chance to purchase a freehold investment Motel on the Sunshine Coast.

Auction: On-site Friday 27 April 2012 at 11.30am

INVESTMENT FREEHOLD MOTEL - NAMBOUR, SUNSHINE COAST

How to make money from Motels

• Buy run down, 30 room Mum and Dad motels in regional Qld• Clean them up and sell the leasehold

• Put restaurants in them and apply for a liquor license• Sell the lease hold

• Buy motels with low occupancy rates • Clean them up, market well and increase the occupancy rate• Sell the leasehold

NB: Motels are priced on their occupancy rate which is determined by 2 variables:

1. Management/Marketing2. Regional Growth

How to make money from Businesses

• Franchise ?• Size ?• Freehold/Leasehold ?• Which Industry ?• How do you get finance ?• Workin or Workon ?• Online V Offline ?

Ideas Buying Investment Businesses

• Create a Franchise chain…. Don’t buy one

• Size does matter… Business owners make money from their staff

• Investment businesses must make money even if you leave it for 12mths

• Vendor finance from the seller and pay off with the profits

• Don’t buy a job for your family, be the owner not the onsite manager

• Be careful with the figures when buying… never pay for goodwill

• Buying Online Businesses is easier than Offline because there’s no cash transactions, all aspects are easily tracked and costed.

• Online businesses are the reverse of traditional businesses.

• Always talk to the competing businesses…. You might get a surprise