Yield

[bil8999]

Hi to all

At what yield would you think a corporate investor would pay for a block purchase ?

[Richlist]

Thats a bit of an open question. I suspect it would depend on lots of factors. I have no idea on the answer but can share my thoughts. I think it would depend on:

Location, condition, type of accomodation, lease length, wether freehold was included, potential to increase value, proximity to stations or universities or large employers, wether already let, age of building, how well it meets legislation for EPC, parking, desirability etc, etc, etc.

[Grampa]

if commercial with a tenant and lease in place investors would be looking for close to 10% return but you then have to factor in the length of the lease, is there a guarantor and quality of the tenant and that's just the bear basics

[bil8999]

I have been approached by a company that wish to purchase my freehold properties, they are working on between 7 and 8 %, is now the time to sell?

They seem to be interested mainly in the flats.

[Richlist]

You may have missed the boat with regards to CGT.....which I assume will hit you hard.......and perhaps even harder after Wednesday's budget. You may regret not completing any sale last week.

[bil8999]

I have always thought that the tax payable on the sale of the bulk of the properties would prohibit me from selling, this company in my view have made a reasonable offer, its living with paying the tax that will make me decline the offer, that and the fact i have owned some of the properties for 40 years.

I will have to think of something to overcome the tax situation.