Saturday, September 20, 2014

Sale of commercial property

We sold our commercial property a few months back as the tenant decided to purchase their own unit instead of renting. Over the course of 2 years, we've had 2 different tenants. It took us 3 months to market the office for unit in the change in tenancy but still no taker for rental. Rental market seems to have slowed down considerably in the last 1 year. Instead, out of the blue, an offer to purchase our unit came along and we decided to sell it. This allows us to take back our capital invested to look for other opportunity.

We locked in about $75k of profit. Including rental yield, it was probably closer too about $100k over the last 2 years. Well, nothing to rave about given that some people easily earned a few hundred k from sale of their properties over the last few years. Nevertheless, it was a great experience for us as new landlord and certainly many key takeaways. This investment helped us refine our spreadsheet and prepare us for our next investment.

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