Dear All,
I'm new to Aussie properties and would like to hear views regarding the above proposition for a studio unit costing AUD220K situated in Melbourne CBD. Leased to a renowned 4 Star Hotel Group. Would this be a fair, good or excellent deal? Thanks.
Well, it must be gross return of 7%…
with management fee 25%, lease cost fee 10%, linen fee et…. probably the return close to 3-4%When you want to sell it…. you probably looking at 10-20% below the market value… as it is hard to sell as no investor would like to buy…
AVOID at all COST
This one claimed to give 7% net return and body corporate fees and maintenance to be absorbed by the Hotel Group on a long term lease. By the way, this property is being marketed overseas (I wonder why?) but by a quite reliable agent, based on properties they have been marketing and introducing for years in those respective countries.
as god or moneys says, the supply and demand equation is not in your favour on this deal, limited supply and strong demand is the key to a good investment , then worry about the yeild.
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