hi all
couple of problems for sepp 5 developments and the reason I don't get involved in them.
1. you can only have over 55 people living in the unit per the strata so you can't just rent to any one
2. most are in high income areas and over 55's are hard to get loans for so you are looking for cashed up buyers.
3. even harder to get presales to over 55's as the markets is nearly dead as is on presales and you won't get renounceable option on over 55's as the put option holder want the ability to rent or hold if the deal goes west.
4. the areas that the sepp 5 are in
the build costs are the same but the sell market is very reduced
so you do have to market to the grey power and that is a very powerfull group
they have made there money over 35 to 40 years in the labour force
they have most of them been in business and as such are very good negotiators
so would you have say 20 units trying to sell to a hard nose ex car dealer,ex bank manager, ex middle manager,ex doctor, ex dentist,
or a 21 year old straight out of school/uni and has a girl friend straight out of school/uni looking for there first home ie a unit.
I know which I would take.
the second also can get a loan.
the grey power is and will become a very powerfull body and there are fund that invest in retirement villages
there is also a new fund that is investing in very large trailer parks, to take the very large rv coaches driven by the grey power
and that is increasing at a very high rate
and you can't park a 40ft coach pulling a merc 4 x 4 at a motel
and if you haven't seen them then drive up the highway from newcastle to taree and you will see them all the time.
the trouble for sepp 5 for me is that the margin is there and they are good product
but you can't get presales
there are not alot of point to hold unless you lease not rent.
and would be hard to find tennants when one left.
this will change as the grey power grow in numbers and remember that wave is comming when the current 40 to 50 get to 65 there is going to be a very big problem.
for me I will be the 40ft with the merc by then.
