by Rich Williams.
If you are considering investing in commercial properties then please consider Dubbo real estate as it has a lot to offer. There are five key aspects to consider when researching your market for investment in a commercial property. The five tips I can suggest you consider are as follows; affordability, growth potential, occupancy rates, rental returns and out-going expenses
Affordability: Dubbo real estate is more affordable especially if you are on a limited budget and is generally more affordable than investing in city properties as listing prices are generally lower.
Growth Potential: “Dubbo could easily accommodate the 1000 extra people Dubbo mayor Allan Smith hopes the Evocities campaign will deliver /n the next three years, an economic specialist says.
That target would be enough to boost city services without negatively impacting amenities, Charles Sturt University’s Western Region Institute director Tom Murphy said yesterday.” This quote is from the Dubbo newspaper the Daily Liberal on the 24/09/2010 and is an indicator of the potential that Dubbo real estate holds. Another article in the Dialy liberal 23/09/2010 says that “The Evocities campaign suggests one in four Sydneysiders would consider heading inland to a regional city.” So the Dubbo Mayors goal of 1000 new residents in Dubbo seems achievable and would be a boon for the Dubbo real estate market.
Occupancy Rates:There are no published occupancy rates for commercial properties in Dubbo but property investor Bruce Bolam reports that he enjoys an occupancy rate of 94% (Bruce’s property portfolio of 64 potential tenants are based in Dubbo and Bathurst). So as you can see if you offer what the market wants which is what I see Mr Bolam doing you can enjoy high occupancy rates like Bruce’s. Bruce offers brand new or renovated premises to his tenants and finds that this makes a difference to having happy long term tenants.
Rental Returns:As rents in Dubbo/ are proportionately lower then their city counterparts but are proportionate to the purchase price you can still make good returns on your commercial property. Bruce Bolam makes an average of 8%, you can currently buy one of Bruce’s commercial buildings in Dubbo that has two floors of rent-able space that total 800 square meters for $2,750,000 Aus (Ex GST) and obtain a rental return of $23,868.12/month (incl GST).
Commercial Property Investors: Consider Investing in Dubbo Real Estate like the Darcy Kennedy Building.
Out-Going Expenses:
The main ongoing outgoing expenses for most Australian commercial properties are the council rates. The Dubbo council rates on the property (Darcy Kennedy Building) I am using as an example for this article which is located at 157 Brisbane Street Dubbo are $15,816pa in 2009/2010.
The Dubbo real estate market has some great commercial properties for sale. I hope the example of the Darcy Kennedy Building was a useful to illustrate how Dubbo real estate is worth your consideration if you are currently researching the market prior to investing in commercial properties. If you are interested in finding out more about the sale of the Darcy Kennedy Building in Dubbo please contact Megan on 0402811824.