Hi guys ,
I’m reasonably new at this , so please be gentle with me [confused2]I am currently having a look at a unit in a retirement village ,it is practically new and has lease for life tennants in it paying 190 a week . The asking price is very reasonable.
So reasonable in fact that it leads me to wonder what I may have missed. Does anyone have any experience with these types of units in Oz ?Al
Hello swoffer,
Do you reckon there is any upside for cap gain later onj, or are we looking purely at income?
Also, perhaps a check on body corp costs and any other levys?
I take it you mean a lifetime lease for the elderly tennants not your own lifetime.
Might not be a particularly long lease?![confused2]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
How ya doin Giddo , yeh it would be a capital gain scenario as it would be neg geared .
I may have answered my own question though in that we have just found out that the banks wont lend any substantial amount on these type of retirement units because Govt regulations prohibit them from evicting elderly tenants in the event of a loan default. Understandable really when you think about it . Probably a good oppertunity for a cashed up investor.Al
Hi Swoffer,
Well picked up – LVR, access to security and so on are all issues. While there may be movement in bank policies further down the track (in fact it may have happened already) this is the big ticket issue at the moment.
Also recommend a search of the forum – this topic comes up quite frequently. See under forums button at the top of the page.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
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