Pages

Tuesday, September 28, 2010

On commercial property

With inflation, rental yield will go up. 50psf is average rent today i.e. 20,000 pm for a 200sf shop.

100 psf will become average in a couple of years i.e. 40,000 pm for the same shop.

Capital values will rise less, because FD interestrates will be higher and so capital values will less than double with doubling of rental - so that rental yield will be say 17 or 18% of your capital invested.

No comments: