Holiday cabin???

[voodoo]

Hi all,

I am currently looking in to a fully furnished and managed holiday cabin.

It is in a great location 4.5 star and returning 21% gross on the purchase price.

Take out managers fees, maintenance, body corp, rates and services and it drops to about 6% net.

It looks like it could be a great investment, but holiday IP's are a new thing for me, so what are your thoughts or words of advice.

I have the statements for the past 12mths on 3 of these cabins and they are very consistent.

any thing i need to know about holiday IP's

thanks

 

[Harris]

What sort of CG you are expecting on those voodoo..
6% net though sounds good...but nothing close to some of the yields you can expect in regional areas

Is that 21% gross return on full occupancy or does it factor in some vacancy as well ..?

What part of aus..?

 

[voodoo]

Harris,

These figures include a vacancy rate, as some months only grossed $600 and other months were up to $5200.

The CG has been a bit slow, I dont know why.
They are on the beach with pools, tennis etc.

NSW North Coast,

for more detailed info just send me a PM

 

[geoffw]

Originally posted by voodoo
The CG has been a bit slow, I dont know why.

It may be because it's an investment place, which limits the markrt to investors, and not to owners (I'm making an assumption here). Though now, that shouyld not make much of a difference.