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Can you take out a Limited Recourse Mortgage on a existing property in the superfund that is fully or almost fully owned to get the deposit for the next, ie using the equity to move forward ie one property is valued at $185,000 and I want to purchase a second of the same value so I use 30% equity in one via a LRL to make a deposit on the second borrowing the remaining 70% on that via a LRL as well.
This would bring the funds holding to three properties.
The regional cities rather than towns make more sence, I just bought two properties in Wagga and they rent at a higher rate than in the towns near by due to higher demand. Many country towns have a high number of properties on the market and this tends to push down rental returns.
Its like anything get to know your market. Wagga for example has two military bases and a university so there is high demand for smaller rental properties.
Holiday Accom is a very difficult market, there are some great opportunities, I owned three of them however you need to look at booking fee of about 20%, change over and cleaning fee and you Body Corp fee and in many cases a management charge.
In a recent no reserve Auction for a developer at a well known ski resort, there were many so called bargains however the cost of owning in many was higher than the returns so even if you bought for $1 you would lose money.
I looked at some in Japan and the same deal, no matter what you did, costs outwayed income.
Be very careful in that market, it can be a great investment or it can look a lot more like time share in the end where you carry the costs but own very little.
Thanks, in that case yes, in this case no to seperate unrelated owners and two different selling agents.
Hey Scott wanna nice FC Apartment going cheap
Thanks Scott and Evolve, the apartment does have a management agreement where one company has the rights to take booking and provide cleaning and change over. All bookings and payments need to go through this company. We could stay there if we wanted but on leaving the management company charges us a change over. We can not allow friends to stay.
We recieve payments minus all charges twice a year.
