You can invest your cash in a bank term deposit and probably get a 4.8% return but there won’t be any capital growth at maturity – for every dollar you put in, you only take out one dollar.

What about investing your cash in real estate? This property is showing a 5.8% annual return plus the prospect of capital growth when you decide to sell.

The motivated seller has authorised the agent to drop the asking price by $29 000 from $168 000 to $139 000 to bring about a quick sale. It’s an ideal opportunity to take your first step into the commercial investment arena without having to raise massive amounts of capital deposit.

This freehold retail shop is situated in Northam’s busy main street and occupied by an independent fast food/take away trader. The brick and iron building was built approximately 1912 and has a floor area of about 52sqm situated on a 218sqm block of land zoned Town Centre. The shire rates are $1 577pa and the water/sewer rates are $1 108pa. There’s loads of public car parking space at the rear of the property in Minson Avenue which overlooks pretty Bernard Park and the Avon River foreshore.

The current tenant commenced operation in October 2005. However, his business known as Hunger Busters and has enjoyed continuity of trade through successive owners for many, many years. The tenant pays rent of $8 087pa plus outgoings plus GST and has one renewal option from October 2009 to September 2010.

The freehold is to be sold under the ATO’s ‘going concern’ principle therefore the asking price of $139 000 is GST-free if buyer has an ABN and proposes to continue with the lease arrangement.