Commercial property in Mackay CBD offers secure investment
THERE'S hardly a more secure commercial investment than a funeral parlour - whether you like it or not, business does keep coming in.
Eventually, everyone will require the services of a funeral home and if you've been waiting for an opportunity to invest in an intriguing business venture then your chance will arrive this coming week.
A commercial property at 189 Alfred St, in Mackay's CBD, will go to auction on Wednesday, August 7.
Tenanted by Mackay Funerals, a business that has operated in Mackay for more than a century, the property is owned by ASX-listed InvoCare.
The 609sqm site includes the 287sqm funeral home, which features a 50-seat chapel and a mortuary and has undergone a major $450,000 refurbishment in the past year.
Burgess Rawson director Raoul Holderhead said funeral parlours ranked among the most secure commercial property investments, as there would always be demand.
"You think about doctors, dentists and vet clinics, they'll be there for decades, and it's the same for funeral parlours," he said.
"They're technology-proof - people will always need them, and that's what makes them very popular and successful as investments."
Established in 1881, Mackay Funerals has occupied the site since the 1990s.
The company recently signed a 10-year lease with two additional 10-year options. Current return on the lease is $107,000 plus GST per annum.
Mr Holderhead said price expectations were about $1.55 million, which would deliver a yield of about 7 per cent.
Burgess Rawson's 130th Investment Portfolio Auction will be held in the Crown Casino River Room from 11am next Wednesday. For more information, phone 0413 860 304