Forums / Property Investing / Help Needed! / ATM Machine investing?

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  • Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Hi,
    has anyone invested in ATM's through ownyourownatm.com.au? It's run by the same couple Corr and Helene Thomas (bluehorizons property consultants) advertising cashflow positive properties in the Surat Basin in the API magazine. The returns claimed are 20%. Be interested if anyone has gone through with this investment and what they think. Many thanks.
    Cheers,
    Gats!

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,173

    I had a mate who had one or 2 ATMs in his shop, think he was getting around $180pw for them. So it can add a bit to the income received – but you will need somewhere to put them, good location etc.

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    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Thanks for your reply Terry. The offer is for a minimum of 5 ATM's which costs $70k plus GST returning 20% or 20 cents per transaction, whichever is the greater ($70k x 20% = $1,167 per month).  Also it qualifies for Rudd's 50% tax deduction if purchased before the end of this year.
    It really works best for people who are selling investment properties and have a large CGT. That's what my friend is doing who has sold four investment properties to pay down borrowed debt and cover his CGT bill by investing in them for a passive income cash stream.
    It runs on a 5 year lease and it's a bit like commercial property in that the deployer of the machines covers all maintenance/repairs issues, etc.
    The problem I have firstly is that banks aren't keen to lend against them and compared to investment property, there's no capital growth over time. I'd love to be able to borrow from a line of credit, etc and buy 10 or 15 to make it really worthwhile but you would still have the debt in say 10 years but with no capital growth in an asset (like investment properties) to offset this. Fifteen of these would replace a wage!
    Frustratedly yours,
    Gats!
     

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,847
    Terryw wrote:
    I had a mate who had one or 2 ATMs in his shop, think he was getting around $180pw for them. So it can add a bit to the income received – but you will need somewhere to put them, good location etc.

    Reasonably cheap when compared to some of the deals I've seen done on these in shopping centres etc.

    Gatsby, how does the deal work? ie who has to acquire the lease location? who pays for the fitout (eg signage or other decorative treatment)? who pays for the make good? who pays the rent on the location?

    Profile photo of GlennsaGlennsa
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    @glennsa
    Join Date: 2009
    Post Count: 19

    Who pays for it when it is blown up?

    Glennsa

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    All costs are covered by the deployer (ie, vandalism, upgrading, relocating, repairs even in the event it is 'blown up'). If you check the website in the API mag that advertises it it will answer more questions than I can. I'd love to do it but I don't know if banks will lend against this anymore since the days of easy lending a year ago. It would mean that I wouldn't have to work (or choose not to to a great degree) however in ten years nothing has gone up in terms of capital growth compared to buying an investment property would . I'm very keen to enter into this but the absense of capital growth is what holds me back. I'm going to contact my bank after work to see if I can draw down equity and if no go then I'll give it a miss. If I can draw down equity then I will seriously think about it.
    Cheers,
    Gats!

    Profile photo of vegveg
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    @veg
    Join Date: 2009
    Post Count: 4

    Hi Gats,

    Very interested to know if you went ahead with the ATMs as we looked at it ourselves but don't have the funds.

    Cheers

    Veg.

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