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Old 12-13-2007, 07:20 PM
PaulS
 
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Default what type of commercial prop to buy?

depends on your goals- present income, or some kind of development play.
for present income:
1) you can buy a single credit-tenant type property and enjoy 7-8%+ returns (esp if you buy US with your appreciating HK dollars.
2) you could buy multi tenant medical office or industrial, and enjoy 8-10% returns

for development or higher risk-returns:
1) you can buy a multi-tenant property with short term tenants paying less than market rent, because you believe you could re-tenant at market rents.
2) you can buy property with room for expansion, say a retail or hotel with excess land. build it out, using the existing property income to subsidize development costs. then you have created much additional value, and can sell or (in US ) do a tax deferred exchange.
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