Hi Guys,
I've recently come across an investment opportunity which is a 56sq 1 bedroom apartment, currently leased by Quest.
It gives a guaranteed 7% gross return (+ approx $2000pa rates etc) with 4x5yr options.
I've already read some archived threads on similar situations, so feel I already have a good handle on the pros and cons.
However, my main question is that if I feel confident enough in the investment in general, is this a good/the best option for my husband and I?
We are in our late 20's, have another property with a comfortable mortgage, and are keen to find an investment property to help us get ahead, or at least be helpful in retirement.
I believe this type of investment may be suitable, as the mortgage will be mostly covered by the rental return (which increases by 4% each year), meaning that we wont be making an annual profit (not our aim right now), but in the long term, someone else is paying off the mortgage, so even without much capital growth, we will end up with a good retirement fund...
If the hotel chain goes bust and the property ends up becoming residential, I'm confident the value of the apartment will be substantially above what we have paid.
I realise we may have concerns getting lending for the property, but that done, I'm just wondering what other option would be better, in that it pays off itself & looks after itself. I find it difficult to find a residential property that will do the same...
Thanks in advance for your thoughts!
I've recently come across an investment opportunity which is a 56sq 1 bedroom apartment, currently leased by Quest.
It gives a guaranteed 7% gross return (+ approx $2000pa rates etc) with 4x5yr options.
I've already read some archived threads on similar situations, so feel I already have a good handle on the pros and cons.
However, my main question is that if I feel confident enough in the investment in general, is this a good/the best option for my husband and I?
We are in our late 20's, have another property with a comfortable mortgage, and are keen to find an investment property to help us get ahead, or at least be helpful in retirement.
I believe this type of investment may be suitable, as the mortgage will be mostly covered by the rental return (which increases by 4% each year), meaning that we wont be making an annual profit (not our aim right now), but in the long term, someone else is paying off the mortgage, so even without much capital growth, we will end up with a good retirement fund...
If the hotel chain goes bust and the property ends up becoming residential, I'm confident the value of the apartment will be substantially above what we have paid.
I realise we may have concerns getting lending for the property, but that done, I'm just wondering what other option would be better, in that it pays off itself & looks after itself. I find it difficult to find a residential property that will do the same...
Thanks in advance for your thoughts!