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Online Share Trading

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Commercial Property?

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Frequent Contributor
I am investigating the opportunity to buy quite a large empty property in a busy commercial area in Gauteng. There is enough space to provide for parking and a nice tea garden/outdoor restaurant as well as a couple of shops on the ground floor. I also believe that if designed correctly, one will be able to let out shops on the second floor. One might even consider to built a third storey to be let out to attorneys, doctors, etc. The problem is, the property is to small to house a Spar, PnP, or SHP. These companies are in any case, already established in buildings close by. If any one can provide me with a rough estimate of current building costs per square metre for a 3-storey shopping/office building in Gauteng, it will help me in my calculations/negotiations/decisions. And, I might end up with a money shortage for the development, so how is your feeling about investing in this project?
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6 REPLIES 6
Super Contributor
Dont know about commercial property, but with recent experience in JHB residential property usually costs around R 10,000 - R 12,000 per sqr meter.
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Super Contributor
I wouldn't touch small commercial props with a barge pole. The rates are huge and the returns are miserable. The banks don't like this kind of property either - so you need to use a lot of your own cash. It took forever to get out of the commercial stuff I owned. Never again.
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Super Contributor
I wouldn't touch small commercial props with a barge pole. The rates are huge and the returns are miserable. The banks don't like this kind of property either - so you need to use a lot of your own cash. It took forever to get out of the commercial stuff I owned. Never again.(LAND, on the other hand, is different story altogether.)
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Super Contributor
I wouldn't touch small commercial props with a barge pole. The rates are huge and the returns are miserable. The banks don't like this kind of property either - so you need to use a lot of your own cash. It took forever to get out of the commercial stuff I owned. Never again.(LAND, on the other hand, is different story altogether.)
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Super Contributor
my advice would be that for a venture this big, you need proffessional advice since it requires your life savings or a massive loan....this forum is a BAR, so the only stories you goin to hear is the ones about how things went bad...Good luck. Hint: dont take any advice from ALSItrader!
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Super Contributor
I would suggest that this is not be a "big" venture or it wouldn't have surfaced here in the first place. It is almost impossible to get meaningful advice on this kind of venture if it is below a certain size. You need to do your own howmwork. That said - the fact that this forumite has felt the need to bring this venture to this venue immediately indicates that he should probably not get involved in the first place.
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