With a strong lease and tenant in a well located modern building, there were some disappointed investors at the auction of Unit 5, 5 Gibson Road Noosaville… disappointed because the property sold under the hammer. These investors weren’t in a position to bid at the auction and had hoped the property would be passed in, so they could make an offer after the event.
With four registered bidders and lots of spectators, the property sold to a local investor after some spirited bidding.
The marketing campaign attracted approximately 40 enquiries with an offer to purchase (with conditions) made prior to the auction.
With interest rates continuing to stay at historical lows and growing confidence in the world economy the moral of this story is – if you want to buy a property that is going to auction, be prepared to bid!
With commercial property yields ranging between 8% – 10% compared to residential investment yields being approximately half of this, there is a significant amount of money (including the SMSF demographic) chasing quality commercial properties.
The 379sqm strata titled property has 5 years left to run on the current lease with a net income of approx $96,500. With a sale price of $1.1m this represented a yield of 8.77%.