High yielding retirement complex units

[jaspn]

I'm posting this purely out of curiosity with no intention of buying one. I come across many units in over 55 complexes which have very strong yields.

Have a look at:
http://www.realestate.com.au/property-unit-qld-bethania-111595583

Some immediate cons which come to mind are

- Limited tenant market
- High, sometimes unexpected tenant turnover
- Possibly higher than usual management costs

Does anybody here have any experience in investing in these properties?

 

[Shahin_Afarin]

This is a terrible investment. Add extremely difficult resale and extremely difficult to finance (you would be looking at 80% and only 3 lenders would touch it).

There are some over 55's development which are almost ok but this is certainly not one of them.

 

[Brady]

As mentioned above financing these is the issue...

If people struggle to get finance, means you struggle to sell.

Don't have many to sell to means limited demand which drives growth.


High yield, high risk.