'Now is the time': agent tips first-time investors will turn to commercial property
First-time investors are expected to be among the many keen bidders at Burgess Rawson’s first Sydney portfolio auction for 2020, where 10 properties are set to go under the hammer.
Agent expectations for the auction are running high, with many buoyed by the auction of 7-Eleven service stations earlier this week, at which all 18 properties sold.
“We are looking forward to [this first Sydney portfolio] auction setting a positive momentum for the year ahead,” Burgess Rawson director Dean Venturato said.
“Buyer confidence for the start of the new decade is strong.”
He said the auction would probably have particular appeal for first-time commercial investors, who have been seeking out an affordable entry to the market after being turned off by other investment options.
He said alternatives to commercial property were either “low return or high risk” and that looming global threats such as coronavirus would probably exacerbate this.
“The sharemarket is at an all-time high, which traditionally means a big correction is around the corner. Add to that the fact that interest rates are at an all-time low and money in the bank isn’t really achieving any returns,” he said.
Of the six properties in NSW and four in Queensland being offered on the day, several are being pitched as suitable for first-time investors.
“Properties like the Sona Yoga studio in the heart of Sydney’s east returning $102,909 per annum (plus GST) are very hard to come by and the potential to add value here can’t be ignored,” Mr Venturato said.
“The same goes for Kogarah’s healthcare practice in that it is surrounded by hospitals and infrastructure and will be offered at an entry level price to bidders – if you want to delve into the market with your first commercial property investment, now is the time.”
Two beachside assets in Queensland’s Coolangatta, leased to Gelatissimo and Raw Energy, are also being tipped as ideal entry level investments.
Other assets predicted to be a hit include a restaurant in Rozelle restaurant and a 2833-square-metre Supercheap Auto and BWS site in Lithgow.
The properties set to go under the hammer:
205 Main Street, Lithgow, NSW – Supercheap Auto/BWS
Annual income: $246,680
52 Kabbera Boulevard, Kelso, NSW – G8 Education
Annual income: $128,682
15/22 Belgrave Street, Kogarah, NSW – Healthcare / Nutritionist
Annual income: $27,023
7/122 Terry Street, Rozelle, NSW – Restaurant
Annual income: $138,418 5
10/110 Marine Parade Coolangatta, Qld – Gelatissimo and Raw Energy (2 shops sold separately)
Annual income: $52,170 (Gelatissimo) and $88,337 (Raw Energy)
1/65 Belmore Road, Randwick, NSW – Sona Yoga
Annual income: $102,909
Lot 14, 115 Buckley Road, Burpengary East, Qld – IGA
Annual income: $176,785
23-25 Grant Street, Broulee, NSW – Shopping village
Annual income: $102,79
1/694 Brunswick Street, New Farm, Qld – Restaurant
Annual income: $109,989
The auction will start at 11am on Thursday, February 27, at Doltone House in Sydney.
