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Vishal & Shruti, a young couple living in Sydney who already have a few investment properties in their portfolio wanted to utilise their SMSF for their next investment purchase. They approached us with a view to understand the overall SMSF investment process and to get help navigate through the nuances and securing the right property.
We introduced them to the idea of investing in a Commercial property, pros and cons of it and the value it would bring to build a well diversified portfolio considering they already have a few residential investment properties. They were open to the idea and we started the journey.
Challenges:
We had a challenge to find a great commercial asset under $600k with long term lease and stable tenants.
Strong rental yield and a positive cashflow from year 1.
Approach:
As this was an SMSF purchase, our strategy for Vishal & Shruti was to secure a property in a capital city rather than a regional town which would ensure stable long term growth along with good rental yield.
We also looked at the stability of the business in the premise and the lease terms and length, ensuring we minimise the RISK and have a sustainable growing investment.
We successfully a purchased a Retail asset (Barber Shop) with 1 Car Park on title for Vishal & Shruti. The property is in a thriving Residential, retail and commercial hub with high foot Traffic, busy Street frontage, apartments on top ensuring consistent clients and income for business.
The investment generates approximately $1968 pa positively Cashflow. With a fresh 5 Year Lease signed and a stable Business (Local Barber for almost 15 yrs and in the same premise for last 5 yrs) it ensures the stability.
Additional, with a 4% Annual rent increase it ensures sustainable growth.
Homez guided us through every step of the process, identifying the right property, negotiating and ensuring a smooth settlement. Their knowledge of the SMSF property purchase process was invaluable.
