I have just read Steve’s book 0-130 Properties in 3.5 years, and I am inspired.
Just ordered BuyerBeware as well.
Searching properties around my price range, I found some retirement units for 75,000ea with government subsidised rent of 182.93 week.
This look Cashflow Positive under the 11 second formula.Would this be worth looking into further?
Cheers
Bobbackoz[cap]
Yes they would fit the 11 second solution. Furthermore I’d like to buy a few, do you know anyone that could give me the details that would be looking to collect spotters fees aswell?
Fast Lane- The poster formerly known as g7
Hi bobbackoz
those returns look excellent for Australia. Do you know if you get title to the land for that sort of price i would imagine not ??
It looks too good, i just wonder if there is some catch to it ?
let us know how you progress. If all looks good those returns are a winner.
regards westan
Over 100 deals done in the USA in 2005
Buy in the USA email me at [email protected]What are the management & body corp fees. I’m guessing $$$$++.
The LVR lend on specialised units is often not good (especially if not fully contained and/or <50sqm). Hard to buy, hard to refinance, hard to sell.
The CG is likely to be very small.
Sorry to be a wet blanket on this. It all depends on whether it is a special purpose unit, if not then disregard my negativity above.
The units are specialised retirement units with 100% occupany rate and at least 8 people on a waiting list to get in. Good location waiting for the financials to come in. Anyone recommend finance broker.
Originally posted by bobbackoz:The units are specialised retirement units with 100% occupany rate and at least 8 people on a waiting list to get in. Good location waiting for the financials to come in. Anyone recommend finance broker.
OK, all my negative comment stand then. For the reasons stated I wouldn’t touch it with a 10 foot pole. Occupancy and waiting lists mean nothing, it is a very poor investment IMHO.
Hi Bobbackoz,
Are there other costs – like management fees ? Body corporate ?
Any other costs that wouldn’t normally apply to an IP investment – like (perhaps) built-in laundry costs, registered nurse subsidy, ….
I don’t know, as I’ve never chased this kind of deal. But I’m seeing a HUGE return, and I’m looking for the catch. Is there one ? Do let us know, Bob, as we’re all learning too
Benny
Hi Bobbackoz
I looked into retirement units a while back & they were positive however only by $8.00 per week once everything was taken into account. Yes it is positive but the Capital Growth could take a while to get you anywhere I suspect. You could do better elsewhere but don’t focus only on the positive cash flow. I am $80,000 ahead in 6 months after investing in the right place at the right time so I don’t plan on worrying about $8.00 per week or I will be working forever!
Sparky
Sharon
Don’t be so modest.
With the speed your portfolio has been increasing it is a lot more than than that.
Thought you would have least known a good mortgage broker.Not sending my ironing down any more !!!!
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Just in case those intersted are still wondering, the net income on these properties is $100 giving a 6.9% yeild. Not that flash!
The government subsidies comprise of State and Commonwealth subsidies. The State subsidy will be phased out over the next 10 years. However the agents say that the rental income will not reduce.
Hi
just 2 quick points.Most of these units are under 50sq metres and finance can be a big problem.
I think demand will increase very soon with our aging population so prices must improve big time[biggrin]
Peter
Here is the link and I do have the documents if anyone is interested in all other associated costs.
http://www.realestate.com.au/cgi-bin/rsearch?a=o&s=qld&c=14192167&tm=1140391382&id=102897810&f=120&p=10&t=res&ty=&snf=rbs&ag=&cu=&fmt=&header=
give me email address’s and I will send the documents I received.Hi all!
I am in agreeance with lattam, having sussed them out last year (and having attended lectures at Melbourne Uni on the “Aging population”) I doubt they will hold up to the light considering the phasing out of subsidies, those cheery agents will always forcast optimism on a posible sale…Future vacancies when they do come wont be filled like any other rental vacancy, better to buy some cheap land just off a small city or big town and build your own village for retirees (or even a hospital) check out Toowoomba theyre going to need retirement villages…
Better to be wrapped in a wet blanket than a sinking ship…
“ask and you shall recieve”
Sincerely, Jarrah
++CASH FLOW PROPERTY HUNTER
(your not hunting if your not hungry)[email protected]
Climbing & Consulting
Arboricultural Services
0431433288“be ye angels?”,
“nay we are but MEN!”
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