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OK, so I got 7.9% as well. I didn't know that it is worked out on the current estimated value, not the original purchase price. Thanks for pointing that out:) I guess that figure looks great but doesn't take into account the fact that it has dropped in value by around 40-50K. I know this...

BTW, the rent is no longer reviewed and has not been increased for three years. Dad said Waldorf would probably tell him no if he asked for a rent increase.

Thanks for your interest guys... I have since found out that dad is not under a contract to do anything with Waldorf - they are simply managing the unit and guaranteeing weekly rent. His contract with them ran out long ago and now he is free to do what he likes with the unit. Dad says he...

4.7% income based on a purchase price of 209K.... but I just reliased I forgot to factor in the buying costs. Thanks for picking me up on that! It's more like 3.7% net yield and a fall in value of about 50K - so absolutely dismal. I just found out that Waldorf have not increased the...

Thanks Jingo, that's great advice!

So why dont these appartments grow in capital?? Is it because serviced appartments are not in demand?

The 40K equity is not from capital growth, it's from mortgage repayments - so no need to worry about CGT? They bought the property for 209K and it is now worth about 160K. I know most property increases in value eventually but, as they are about to retire (next 5-10 years), i thought it may...

The approximate net yeild is 4.7%, if the figures I have been given are accurate. Dad said the property has been useful in reducing his tax. Thanks for your interest. I guess the main issue is, should my parents continue to put money in a property that has fallen in value with little...

Hey guys...just after some advice. My parents own their own PPOR and are paying off an IP. Their IP is a serviced studio appartment in the waldorf complex at Rosehill in Sydney. They purchased it for around 200-220K some years ago and the same appartments in the same complex are selling for...