Handsome Group

11/03/2024

This is how we tenanted 10 units & gained over a $1 million in value in a day..

See also: $2.2million made in a day post for more experience.

If you make it to the end you’ll be rewarded!

Capitalisation Rate (Cap Rate) is where the major difference between residential houses & multi unit/Commecial property gains are made.

So what is the difference between the properties yield and it’s Cap rate?

The properties yield is your actual percentage return that you earn on buying the property.
E.g. the property has a $100k rent roll, and you buy it for $1 million, then the percentage return is 10% yield.

But what about Cap Rate?

The Cap rate is the return that the “market” would require from the property in order to buy it.
A lower Cap rate means a better property, as in the market is ok with a lower return because the property is a safer investment.

How does this affect you?
If we take the same property above, $100k rent & $1mil purchase and apply a different Cap rate x we can see the property value change.

Firstly let’s name a few examples of what makes up a Cap rate and why there’s a difference.
- Buying a good deal (off market, desperate vendor)
- Type of Building (new or existing)
- Condition of Building
- Location of Building
- Tenanted or Vacant
- Type of Tenant
- Strength of Tenant
- Length of Tennacy
- Economic Market
- Interest Rates

So let’s say our building with a 10% actual return that we found off market has the following:
- Multiple medium term tenancies with established businesses.
- The building is existing and has been renovated in the last 10 years to a good standard and is located in a good area.
- The economy is much like today, mid level interest rates and positive again in its outlook.

I’m no valuer (disclaimer) but let’s say we apply a 7% Cap Rate to that scenario.
Repeating the meaning, this means the “market” would ideally want a 7% return on their investment for this building & tenants.

If we take our $100k rent roll, and make that 7% of our value our value then becomes $1,428,571.00
(100,000 / 7 * 100)

Without actually doing anything, we have gained $428,571 of value, just by buying well and understanding Cap Rates.
This new number can be used for bank lending in refinances, top ups and/or renovations.

We use our partnership with commercial tenants, referrers and housing & church groups to tenant our buildings & provide countless benefits back.

I know that was a bit wordy, but understanding the above will help your property journey and help in your tenancy negotiations.

If you’re a business looking at moving premises or building, lets partner on the move and we can truely welcome you to the Handsome Group.

[email protected]

10/03/2024

Partnering with Experience.
Our Tenants are our Partners, and together we work to put your business in the right space.

Our tenants have told us the location and building their business inhabits is vital to a businesses success.
How?

Staff retention
Client access
Stock & Storage solutions
Brand Profile
Neighbour Relationships/Benefits
Cost/Benefit Equation

Whether your lease is up for renewal or years away, let us know that you’re thinking about moving premises, we can help.

82 Byron St, Sydenham pictured below.
The next step in your city fringe needs.
Office/Showroom/Warehouse

27/02/2024

9%+ returning block of flats.
Blocks of flats are easier to maintain, rent out and produce a better return on cost in our experience.

We currently have multiple available for sale starting at $900k.

A reduction in interest rates will increase their value, so there’s no better time to buy cashflow positive properties.

Don’t know where to begin when buying one of these?
Get in touch!
[email protected]

08/02/2024

Can you guess the location of this photo?

We've chosen to invest in Airbnb for some of our properties. Although it requires more active management, the potential returns can be significantly higher.

Why do you think we've chosen this location for one of our Airbnbs?

02/02/2024

Out with the old, in with new.

Owning hill properties has its challenges.
The view is great, but when the driveway starts getting old it becomes a fall risk!

This year we will be returning a few of an our great homes to the market as we make way for more commercial property.
If you’re looking at getting a home or investment off market, let us know and we can talk with you prior to listing.

Michael,

23/01/2024

The hidden treats of Sydenham.
We wrestled this great 900sqm building off the owner to bring one of the golden mile of industrials to the market.

Warehouse
Show room
Office
Dual access
Fenced rear access

Is it time to get your hands on an exciting industrial asset?
Let’s chat!

12/08/2023

Don’t worry, the poles are going!
Sydenham Lease Opportunity!
Dual entrance, secure, mixed use.

Take one or take it all.

First Floor Office - 205 SQM
Ground Floor Office/Showroom - 209 SQM
Warehouse - 467 SQM
Car Parks - 7+

[email protected]
[email protected]

06/04/2023

We are hiring!
And we need the help..

Our last two employees have moved on to the exciting next chapters in their life, a paramedic and project management business owner!

Now it’s your turn to get the Handsome experience.
We are looking for someone to grow within the company as our in-house property manager and administrator.

On offer is the following:
Salary negotiable based on experience.
Company car
Company phone
Company laptop
Company great conversation
Company travel to exciting regions of NZ
Company table tennis tournaments
Company long lunches (professional of course)
Company performance bonuses

What about you?
Working from our office in Christchurch you’ll be proactive, organised and be able to work as a team or on your own.
You’ll be better than us at creating professional images that are in keeping with our brand.
You would ideally have experience dealing with a range of people in a face to face role, and not be afraid to pick up the phone.

Get in touch via message or email [email protected]
www.handsomegroup.co.nz

P.s I’m also glad the left employee has become a paramedic and not become an ambulance

27/03/2023

Looking for a commercial property investment?
Take a look at this great opportunity that comes fully tenanted with a strong income of $112k net from the 5 tenancies across the building. Plenty of upside is available with correct allocation/charging of car parking and rental increases to a market level, this building could achieve an excess of $140k income per annum. 4 out of the 5 tenancies have had internal renovations carried out already and there is an opportunity to purchase this building in its current form and reap the rewards over the next 6 months with internal renovations to the main ground floor tenancy and re-negotiating the rent to market level.
Key features:
Circa 1100 sqm building
12 secure basement carparks
Split risk with 5 tenancies
Great holding income and plenty of upside to increase rents
Great location
73% NBS

Get in touch today for more information.

15/03/2023

It’s decision time.

When you land on our page, I want you to make a decision.

“When possible make the decisions now, even if action is in the future. A revised decision usually is better than one reached at the last moment

https://www.handsomegroup.co.nz/commercial-property-investing

06/03/2023

Owner occupier or net return.

This prime Wigram/Sockburn location will not last long.
Owner occupiers or investors, take an opportunity to purchase an industrial building off market and below value.

Mind blowing numbers 🤯
67%+ NBS
405sqm of warehouse + mezzanine
93.13sqm of office
5 car parks

[email protected]
0212076368

01/03/2023

Renovated, leased and ready for sale!

This project represented an exciting opportunity for us to get involved in the Blenhiem commercial market, and now it’ll be an income producer for someone else.

Looking for low maintenance net income? Or know someone that is?

Check this one out!

Invest in a profitable multi-tenanted property in the heart of Blenheim's bustling central business district. Boasting a total floor space of 720sqm (more...