Commercial SMSF Purchase Delivers 7.23% Yield From Day One

Background:

RD's family came to Homez looking to make their first move into SMSF property investment. Sydney-based and time-poor, they wanted a commercial asset that would fund itself from day one β€” no vacancy risk, no drawn-out lease-up period, just reliable income backing their fund.

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  • First SMSF purchase β€” needed a deal structured around fund compliance and long-term income stability, not speculation.
  • Commercial stock with strong yield and an established tenant is tightly held β€” limited supply in well-located Sydney strips.
  • Balancing a competitive gross yield target against the premium commanded by fully-tenanted, low-risk assets.
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    Approach:

    • Focused the search on fully-tenanted commercial assets with an established, trading tenant already in place β€” removing vacancy risk from day one.
    • Targeted tightly-held retail strips with strong transport links and passing trade, rather than speculative or vacant stock.
    • Negotiated a purchase price that locked in a gross yield well above typical SMSF commercial benchmarks.

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    Here's why this property shines:

    • Self-Sustaining Asset: Fully tenanted by an established food operator, generating immediate income from settlement.
    • High-Yielding Return: Secured at $680,000 for a 7.23% gross yield ($49,172 + GST annual rental).
    • Long-Term Security: Locked in on a 3+3 year lease term, giving the fund a stable income stream with a built-in renewal option.
    • Strategic Location: Ground-floor retail on Pacific Highway, Gordon β€” a tightly-held Sydney strip with direct rail access and strong passing foot traffic.

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    It was a lovely experience. Tarun is very patient and looks after all aspects of the journey. Thank you so much Homez Buyers for helping us in our critical investment journey. Highly recommend Homez

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