Plain-English review of a light industrial / workshop income property using the new lease data: two leases totalling $5,682.51 per month including GST and OPEX.
The key issue is that the provided rent includes GST and OPEX/outgoings. After removing GST, the starting income is about $59,296 per year, and that still needs to be split between base rent and outgoings recovery.
This does not make the property dead. It means the price needs to be tested hard. At the current information level, the deal looks more sensible below $600k, stronger around $500k to $550k, and much harder to justify at $750k.
The goal is not to make the headline yield look good. The goal is to test whether the property can survive real-world problems: GST confusion, unknown owner expenses, commercial debt rates, one tenant leaving, and possible capital repairs.
| Term | Plain-English meaning |
|---|---|
| GST | If rent is quoted including GST, we remove GST before estimating real income. |
| OPEX | Operating expenses/outgoings such as rates, insurance, body corporate/common costs, repairs and unrecovered tenant costs. |
| NOI | Net operating income: income after OPEX, before debt, tax and major repairs. |
| CAPEX | Larger repairs/upgrades such as roof, drainage, roller doors, electrical or fire compliance. |
| LVR | Loan-to-value ratio. 40% LVR on $750k means $300k debt and $450k equity before costs. |
| P&I | Principal-and-interest loan repayment. It pays interest and reduces the loan balance. |
| DSCR | Debt service coverage ratio. A rough lender-style safety measure for debt coverage. |
The two leases add to $5,682.51 per month, but that amount is not clean rent because it includes GST and OPEX.
| Step | Monthly | Annual |
|---|---|---|
| Headline received, incl. GST and OPEX | $5,682.51 | $68,190 |
| Approx amount after removing GST | $4,941.31 | $59,296 |
| Still needs separating | Base rent vs OPEX recovery | Actual owner income depends on lease/outgoings split |
Public listing evidence suggests 43A Linwood Avenue is a small industrial/workshop style complex with multiple units, not a simple standalone building. Earlier unit listings in the complex describe 120 sqm to 254 sqm workshop/warehouse spaces, roller door access, bathroom/kitchenette facilities, car parks and good motorway access.
Market context is only a sense check. Colliers' 1H 2026 Auckland industrial report said average prime warehouse net rents were around $198/sqm, while secondary warehouse net rents were around $148/sqm. JLL's Q1 2026 Auckland industrial update reported Auckland industrial vacancy at 3.7% and North-West vacancy at 6.5%.
| Rent benchmark | Area implied by $59,296/year |
|---|---|
| $148/sqm secondary net rent | about 401 sqm |
| $198/sqm prime net rent | about 299 sqm |
| $200/sqm net rent | about 296 sqm |
| $222/sqm prime combined rent | about 267 sqm |
This is not a valuation. Exact unit area, title, base rent and outgoings recovery must be verified.
If the property is bought without debt, the question is how much income remains after operating costs, before tax and before major repairs.
| OPEX scenario | Estimated annual OPEX | Estimated NOI | Monthly NOI | NOI yield on $750k |
|---|---|---|---|---|
| 25% | $14,824 | $44,472 | $3,706 | 5.93% |
| 35% | $20,754 | $38,542 | $3,212 | 5.14% |
| 45% | $26,683 | $32,613 | $2,718 | 4.35% |
At the $750k price, this produces roughly $2,718 to $3,706 per month before tax and CAPEX, depending on true expenses.
These figures use 7.5% interest over 15 years on a principal-and-interest basis.
| LVR | Debt | Equity/deposit before costs | Annual debt payment | Monthly debt payment |
|---|---|---|---|---|
| 30% | $225,000 | $525,000 | $25,029 | $2,086 |
| 40% | $300,000 | $450,000 | $33,372 | $2,781 |
| 50% | $375,000 | $375,000 | $41,716 | $3,476 |
Each cell shows annual surplus or shortfall, monthly result and DSCR.
| OPEX scenario | 30% LVR | 40% LVR | 50% LVR |
|---|---|---|---|
| 25% OPEX | $19,442 / $1,620/mo / 1.78x | $11,099 / $925/mo / 1.33x | $2,756 / $230/mo / 1.07x |
| 35% OPEX | $13,513 / $1,126/mo / 1.54x | $5,170 / $431/mo / 1.15x | -$3,173 / -$264/mo / 0.92x |
| 45% OPEX | $7,583 / $632/mo / 1.30x | -$760 / -$63/mo / 0.98x | -$9,103 / -$759/mo / 0.78x |
At 35% OPEX, 30% LVR is workable, 40% LVR is thin, and 50% LVR is already negative.
This shows monthly P&I loan payments at the $750k purchase price. It does not include OPEX.
| Interest rate | 30% LVR debt $225k | 40% LVR debt $300k | 50% LVR debt $375k |
|---|---|---|---|
| 5.5% | $1,838 | $2,451 | $3,064 |
| 6.5% | $1,960 | $2,613 | $3,267 |
| 7.5% | $2,086 | $2,781 | $3,476 |
| 8.5% | $2,216 | $2,954 | $3,693 |
| 9.0% | $2,282 | $3,043 | $3,803 |
This is one of the most important tests because there are only two leases. This table uses 35% OPEX, 7.5% P&I debt and the $750k price.
| Vacancy scenario | Rent lost | NOI after vacancy | 30% LVR | 40% LVR | 50% LVR |
|---|---|---|---|---|---|
| No vacancy | $0 | $38,542 | $13,513 / $1,126/mo | $5,170 / $431/mo | -$3,173 / -$264/mo |
| Larger tenant vacant 3 months | $7,596 | $30,946 | $5,917 / $493/mo | -$2,426 / -$202/mo | -$10,769 / -$897/mo |
| Larger tenant vacant 6 months | $15,192 | $23,351 | -$1,679 / -$140/mo | -$10,022 / -$835/mo | -$18,365 / -$1,530/mo |
| Larger tenant vacant 12 months | $30,383 | $8,159 | -$16,871 / -$1,406/mo | -$25,214 / -$2,101/mo | -$33,557 / -$2,796/mo |
| Both units vacant 3 months | $14,824 | $23,718 | -$1,311 / -$109/mo | -$9,654 / -$805/mo | -$17,997 / -$1,500/mo |
| Both units vacant 6 months | $29,648 | $8,894 | -$16,135 / -$1,345/mo | -$24,478 / -$2,040/mo | -$32,821 / -$2,735/mo |
| CAPEX event | Why it matters |
|---|---|
| $25,000 repair | At middle-case NOI of about $38,542/year, this absorbs about 65% of one year of NOI before debt. |
| $50,000 repair | This is larger than one full year of middle-case NOI before debt. It would need reserves or extra funding. |
This is the clean buyer view. The income does not improve because you pay more. If the income is the same, a lower purchase price improves yield, lowers debt and increases monthly surplus.
The table below uses 35% OPEX, 40% LVR debt and 7.5% P&I.
| Purchase price | NOI yield | Debt at 40% | Monthly debt payment | Monthly surplus after debt |
|---|---|---|---|---|
| $750,000 | 5.14% | $300,000 | $2,781 | $431 |
| $650,000 | 5.93% | $260,000 | $2,410 | $802 |
| $600,000 | 6.42% | $240,000 | $2,225 | $987 |
| $550,000 | 7.01% | $220,000 | $2,039 | $1,172 |
| $500,000 | 7.71% | $200,000 | $1,854 | $1,358 |
| $450,000 | 8.56% | $180,000 | $1,669 | $1,543 |
| $400,000 | 9.64% | $160,000 | $1,483 | $1,729 |
A lowball offer should be defensible from income, debt coverage and risk. The table below shows how the same income looks at lower purchase prices if bought outright.
This table uses the middle OPEX case: 35% OPEX, which gives estimated NOI of $38,542 per year. It assumes 40% LVR, 7.5% interest, 15-year principal-and-interest repayments. Deposit means buyer equity before legal costs, valuation, due diligence, GST/accounting advice and reserves.
| Purchase price | Deposit / equity at 60% | Debt at 40% | Monthly debt payment | Monthly surplus after OPEX + debt | Annual surplus after OPEX + debt | DSCR |
|---|---|---|---|---|---|---|
| $650,000 | $390,000 | $260,000 | $2,410 | $802 | $9,619 | 1.33x |
| $600,000 | $360,000 | $240,000 | $2,225 | $987 | $11,844 | 1.44x |
| $550,000 | $330,000 | $220,000 | $2,039 | $1,172 | $14,069 | 1.57x |
| $500,000 | $300,000 | $200,000 | $1,854 | $1,358 | $16,294 | 1.73x |
| $450,000 | $270,000 | $180,000 | $1,669 | $1,543 | $18,519 | 1.92x |
| $400,000 | $240,000 | $160,000 | $1,483 | $1,729 | $20,743 | 2.17x |
| Purchase price | 25% OPEX | 35% OPEX | 45% OPEX |
|---|---|---|---|
| $600,000 | $3,706/mo (7.4%) | $3,212/mo (6.4%) | $2,718/mo (5.4%) |
| $550,000 | $3,706/mo (8.1%) | $3,212/mo (7.0%) | $2,718/mo (5.9%) |
| $500,000 | $3,706/mo (8.9%) | $3,212/mo (7.7%) | $2,718/mo (6.5%) |
| $450,000 | $3,706/mo (9.9%) | $3,212/mo (8.6%) | $2,718/mo (7.2%) |
| $400,000 | $3,706/mo (11.1%) | $3,212/mo (9.6%) | $2,718/mo (8.2%) |
| Purchase price zone | Buyer view |
|---|---|
| $700k to $750k | Weak / hard to justify unless hidden details are much better. |
| $600k to $650k | Only worth discussing if leases/outgoings are clean and building risk is low. |
| $500k to $600k | More sensible buyer range based on current income. |
| $450k to $500k | Strong buyer range if building/legal/lease risks are manageable. |
| Under $450k | Very strong income price, but check carefully for hidden defects. |
| Category | Information needed |
|---|---|
| Lease evidence | Full leases, rent schedule, expiry dates, renewal rights, rent reviews, arrears statement, bonds/guarantees and tenant details. |
| Rent split | Base rent, OPEX/outgoings recovery and GST separated clearly for each lease. |
| Outgoings | Rates, insurance, water, management, body corporate/common area costs, repairs and what is recoverable from tenants. |
| Property details | Exact unit numbers, title, floor area, car parks, common property share and body corporate rules if applicable. |
| Building risk | LIM, building report, roof, drainage, roller doors, fire compliance, electrical, asbestos, seismic/NBS and contamination history. |
| GST/legal/tax | Whether the sale is plus GST, inclusive of GST, or zero-rated as a going concern. Accountant/legal review is needed before unconditional. |
| Lending | Actual commercial rate, term, LVR, valuation requirement, guarantees and lender treatment of the leases/income. |
The lease payments are weaker than the original $6,000/month assumption because they include GST and OPEX. At the current numbers, the deal is most defensible only if bought at a materially lower price or if due diligence proves that the income/outgoings are better than currently understood.
Source notes: public context reviewed from Ray White, Bayleys, PropertyValue, JLL and Colliers. Public records may refer to different units in the same complex, so exact unit verification is required.
Disclaimer: This is a preliminary property analysis for discussion only. It is not financial advice, lending advice, legal advice, tax advice or a registered valuation.