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Thanks for the advice note the property was negatively geared and only became cash flow positive after depreciation. As the property location it is in QLD (20-30 km from brisbane cbd) and was nearly completed projected to be completed within a couple of weeks. While there is a rental guarantee of 470 for the first year, this feels like something developers place in order to get people to buy places quicker (not absolutely sure). i look at the area and see old properties with much more land which may need repairs and maintenance and offering at the same or a smaller price (i don’t know if this a large red flag – not that i intend to buy old). When i raise the holding costs and the negative cash flow the advisors say in a manner of speaking that the rental guarantee provides security, that several of them have invested in the area and that it has capital growth potential (still i feel that capital growth of one property among 56 will be spread heavily across all the properties affecting ability to redraw to buy more- also that will only lead to further negative cash flow before tax if a redraw the equity and buy another property.
The only thing i did was put a holding deposit of 1,000 down and i have not signed anything and i am thinking that i will ask for the deposit back and spend some time done doing some more research reading a few more books before looking to buy early next year so i can concentrate on my CA course exam for December.
Any Further advice is greatly appreciated
thank you very much
Josh
