Has anyone heard or invested with the Donald Group based in Edgecliff ? Does anyone know of any of their investments and Coral Cove in particular.
Any feedback is greatly welcomed.
Thankyou,
Cautious [rolleyesanim]Can’t say I have….only know one thing for certain; whatever they are promoting….if it sounds too good to be true….IT USUALLY IS.
Hi Cautious,
I assume you are contemplating a purchase in the resort.
As such you will find there are a number of issues you need to carefully consider; are the occupancy rates real or projected? – I am assuming they are projected given that the resort is currently under construction or recently finished. How achieveable are these figures? What research has been done on the area as far as tourism goes to ensure the occupancy rates canbe obtained?
How is the income distributed? Is it pooled and distributed according to ownership ratios? Or is it your unit = your income? What happens if your unit is one of the less desirable one under these circumstances?
I am also aware that some complexes developers still holding a share of the units always seem to have their units occupied – whereas Joe Public seems to miss out.
Resort costs can be a little on the high side and being a resort you will be up for a regular clean irrespective of whether it is clean or not.
Be also aware that the size of the unit will determine how much security the bank will recognise in the unit you own. You will need to check this out with your lender.
One of the things you will have to be awre of is the cashflow projections – being classified as traveller accommodation you will be eligible for higher capital depreciation claims and these will positively distort your final cashflow figures. This, along with, the high depreciation claims available to you due to the furnishings can give a little distorted point of view.
As always do your research and go with your research findings.
What attracted you to this development? Was it a recent holiday? If so bad time to buy property – for some reason holidays seem to cause our guards to drop.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Resorts are not residential property.
Ensure you look at appropriate comps and do appropriate research.
Finally get independent legal & financial advice!
Frankly many of these resort deals exist for one reason only – fleecing naive, gullible or lazy investors.
After all they do say that Australia rides on the sheep’s back!
Cheers,
Aceyducey
be very very careful!
DANGER WILL ROBINSON! DANGER!
If you were to sign up I would get the contract checked over by the very best with the possible aim of legal action (either as a defendant or to get what the contract says). (Of course I would do that for most contract [blink]).
FFComm
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