Has anybody here had experience buying these IP’s? Was it hard to get finance? Who did you use? I’ve heard that they are considered differently by the banks to normal IP’s and thus only lend ~60% LVR.
I have my eye on 2 atm, each producing +cashflow. But I was also told that they are not a good idea for beginners (I have only 1 IP) as they cannot really be borrowed against (due to next to no growth) to build a portfolio. Have I heard right? Whats everyone’s views?
ThanxMy first IP has just settled and it is a 2 unit retirement property with Sunnycove in Qld. The purchse price was $183,250 (including furniture) and the Bank of Queensland valued the building only at $178K. The furniture package is $8,800, so I was in front even before we settled.
If you are buying to hold, it doesn’t matter if the growth is slow, because of all that lovely pension rent (usually 85% of the pension.
The return on my property will be 12% gross. Now that’s +ve cashflow[
][][]Thats great Peter. Could you please mail me with more info ie. management costs, %LVR etc
Thanx
[email protected]Anyone else? Anyone know of somewhere that will lend for these properties up to 80-90%???
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