May 2025 Rural Newsletter

Page 1


COMMERCIAL PROPERTY INVESTMENT – ANOTHER ASSET CLASS TO CONSIDER

Forthemajorityoffarmersandgraziersthetendencytogrowthebusinessforourselvesandyourfamilyhasbeen buyingmorefarmsandgrazingland

But,asthepriceoflandincreasesandreturnsoninvestmentaresqueezed,haveyouthoughtaboutCommercial Propertyasaninvestmentchoiceforwealthgenerationandincomediversification?

AndwithanumberofBuyersAgentsinthemarketabletosourcepropertiesandprovideguidanceataNational Level,investingcanessentiallybecompletedfromthecomfortofyourownlivingroom

IwasintroducedtoCommercialPropertywhenIwasBankingover15yearsagoandI’vebeenanadvocateever since,asthereareanumberofbenefitsIseewiththeassetclass: NetRentalYieldsat650%andabove(alothigherthanresidentialhouses); AnnualRentIncreasesof3%to4%pa; Longtermtenanciesof5yearsormorewithoptions; Spreadstheriskbetweenassetclasses; Passiveincomestreamsintimesofdrought; AssistSuccessionPlanningwithincomesandassetsfornon-farmingfamilymembers; Usefarmequityinanefficientmanner; Adaptableandcanbesuitableforanumberofdifferenttypesoftenants;

Therearesomepitfallstobecarefulofwhenmakingthedecisiontobuy Someoftheseinclude: Location,zoningandlong-termtenantdemand?; Leasinglawandtenantsobligations?; WhatismotivationtheSellertoselltheproperty?; Whoisthecurrenttenantandwhatistheriskofthemvacating?

Toassistwiththeabove,belowisachecklistoftheProfessionalsIwouldincludeinanyCommercialProperty Investmentdecision:

Accountant:toadviseontheappropriateownershipandborrowingstructureandtaxadvice; SellingAgents&BuyersAgent:tohelpsourceagoodinvestmentpropertyfromanumberoflocations; LeasingAgent:tomanagethetenancy(theyresolvedisputesandalsohearwhispersofwhichtenantsareonthe move);

Solicitor:toreviewLeases,completepropertysearchesandprovideconveyancingservices FinanceBroker:toassistwithfastandefficientfinanceapprovals;

info@brownandcofinance.com.au 0428070146

https://www.brownandcofinance.com.au

2,879 861 Ha | 7,116 291 Ac (Freehold)

“Glen Elgin”, TEELBA AUCTION

THURSDAY 22 MAY, 11AM ND

9,841 Ha | 24,319 Ac (13 Titles - Freehold)

“Amby Hills”, ROMA AUCTION

THURSDAY 22 MAY, 12PM ND

97 08 Ha | 240 Ac (Freehold)

Farnows Road, FARNOWS FOR SALE

$1,250,000

Park”, DALBY FOR SALE OFFERS OVER $1,380,000

1,948.08 Ha | 4,814 Ac (Freehold) FOR SALE $3,450,000 264 68 Ha | 654 Ac (Freehold) 1122 Kumbia Road, KUMBIA FOR SALE $2,400,000

Bodumba South" & "Ballancar", MOSQUITO CREEK

Blackall

Crows Nest

Dalby

Emerald

Gracemere

Kingaroy

Nebo Roma

Sarina

Alice Springs

Prime & Store Sale - Thursday

Weaner & Store Sale - Monthly

Monthly - Saturday

Wednesday

Thursday Wednesday

Monthly

Monthly - Friday

Store Sale - Tuesday

Friday Fortnightly

Annual Sale

Rural Property Team

Andrew McCallum | Real Estate Manager/Director 0427 581 889

Nick Dunsdon | Cunnamulla

Rhys Hebberman | Darwin

Tim Maguire | Emerald

Owen Brockhurst | Miles

Tony Lilburne | Quilpie & Dalby

Bill Reid | Rockhampton

Dan Tyson | Rockhampton

Rick Benham | Roma

David Benham | Toowoomba

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