how to identify positive geared property

[WebBoard]

From: Kevin Fielding


Hi again all,
With ref to my previous post.
I have read that one of the most effective positive geared types of property is tourism property (esp managed apartment style).
I always thought that tourism property was a bit risky.
Could someone kindly elaborate please.

Many thanks again.
Kevin

 

[NigelW]

Reply: 1
From: Nigel W


On 5/14/02 9:22:00 PM, Kevin Fielding wrote:
>Hi again all,
>With ref to my previous post.
>I have read that one of the
>most effective positive geared
>types of property is tourism
>property (esp managed
>apartment style).
>I always thought that tourism
>property was a bit risky.
>Could someone kindly elaborate
>please.
>
>Many thanks again.
>Kevin

Good to see that you're critically evaluating everything you "hear".

My 2.2 cents worth is that I stick to the basics. Humans need food, clothing and shelter. They don't always need holidays...post Sept 11 you do the maths.

I'm sure people have done, and are making good $ in it, but I suggest that there is more risk (and perhaps thus more reward) in it than residential property investment.

You may also find it more difficult to get finance to the same LVR as you would with resi property.

Good luck and do your DUE DILIGENCE!!!

N.

 

[WebBoard]

Reply: 1.1
From: W W


Just a bit on serviced apartments.

A friend of mine bought a serviced apartment in Broadway Sydney about 6 years ago for about $115,000. it is an excellant location, between 2 unis, close to city etc. She told me it is now only worth $105,000. I couldn't beleive it and did some checking and found 2 others from the same building for sale for about $120,000.

That means no capital growth in Sydney during the biggest boom ever, plus she has been whacked for ridiculous charges, so it was negatively geared the whole time.

I'd stay away from anything 'serviced'.

PI

 

[gailh]

Reply: 1.1.1
From: Gail H


Hi Kevin,

Yes, I agree with the others for the reasons given. There also seems to be an oversupply of them in many areas (eg Coffs Harbour, Brisbane, Noosa). The yields sound good, but capital growth can be poor. In addition, if it is an appartment used for holiday letting, vacancy rates can kill you. I like nice, regular, long term leases thanks very much.

Gail