new to this, can someone take a look

Viewing 5 posts - 1 through 5 (of 5 total)

bozzaa
Participant
@bozzaa
Join Date: 2009
Post Count: 1
April 27, 2009 - 12:29 am
hi guys, i am new to this, have seen these apartments up for sale on nepean highway frankston, beach frontage, sounds pretty good to me, can i get some opinions,
thanks
brendan
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=105668822&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=69196970&s=vic&snf=rbs&tm=1240791935
maree_bradross
Member
@maree_bradross
Join Date: 2007
Post Count: 401
April 27, 2009 - 12:35 am
Ah I know the ones – used to be a large motel complex. There seems to have been no action there in developing for a long time.
They seem good value and probably walking distance to town/train
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
April 27, 2009 - 1:29 am
As ex-motel rooms they will most likely be <50m2 which may mean that you will have some difficulty in financing a purchase. Turnover of tenants will be reasonably high and your levies will also be high if there is to be a fulltime concierge onsite/swimming pool/lift etc. This will hammer any returns.
dr house
Participant
@dr-house
Join Date: 2001
Post Count: 281
April 30, 2009 - 1:52 am
it doesn't say if they are serviced apartments?
You can't really add value, capital gain may be limited and outgoings are often quite high.
god_of_money
Participant
@god_of_money
Join Date: 2008
Post Count: 970
April 30, 2009 - 2:43 am
Ask for Management fee, strata fee etc (big cost)…. and get the gross rental valuation. The nett return may be ~5%.
It may be difficult for re-sale in the future (main concern).
also problem with financing.. but only A$80k …. can pay with cash and park it in DFT