hi all, i've noticed a lot of apartments in perth with "long secure" leases to an operator showing really good net rental returns. I'm guessing Capital Gains on these would not be huge.
Does anyone have any experiences with these types of investment purchases and anything to look out for?
thanks in advance
sIf something has a "long secure" return attached, most of the time this been priced into the original sale price. So initial capital growth will be reduced as a result of this. After this then capital growth should return to normal and be dependant on factors such as location, rental vacancy, etc
Are you referring to the several apartments which are within managed buildings? Like the Quest ones, for example? Or company shares?
During my (short) time reading around, I understand than some investors avoid these… which makes me avoid them… which makes them more difficult to sell.
Discussed this with a REA at the weekend and he said they were difficult to sell also
Thanks for your reply, yes i am referring to apartments which are within managed buildings, some of them also state that owner/operator pays all associated costs such as strata levies and management costs..
sgk wrote:hi all, i've noticed a lot of apartments in perth with "long secure" leases to an operator showing really good net rental returns. I'm guessing Capital Gains on these would not be huge.You guessed right. Typically low CG and high management fees out of which the operator can afford to pay all those nasty outgoings.
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