Matt, what sort of return are you looking for on your investment?
Are you after rental from it or future capital gain?
Looking at a 5 year loan at the moment then interest will set you back over $60 a week alone. What other fees are there for the berth?
I just can't see it having the same appeal as a Holdfast Shores or Wallaroo type berth. The typical river boat is a lot smaller than the ocean boats and therefore most users are happy enough to use a trailer to get their boat out of the river rather than leave it at a berth.
I like the idea of the development but I'm just not sure the town is ready for that many blocks of land at that price. What have they been selling like?
Gools
1. There were several rental options. The most likely and the path I would feel most comfortable was considering renting the berth long term to a house boat owner that lived on the river, then the expected weekly rent would be approximately $90-$100 p.w. (appraised by a local agent). There could also be a possibility to rent it to a commercial House boat Hire company. The intention was to try to achieve a slightly + geared investment but to eventually use the Berth myself on retirement in 15-20 years.
2. The outgoings including water rates, sewer rates, council fees & community fees/sinking fund have been estimated at approximately $2000 p.a. Note: You can depreciate a part of the berth.
3. The idea is to rent it to a House boat owner to moore & live full time not a casual river boat owner, as the berth comes complete with mains sewer & pump, mains water, power & telecommunications, the area to house the house boat is 10m wide by 21m deep + included on the title is 100sqm of land (10m x 10m) for parking of vehicles, this equates to a total of a 310sqm community titled allotment.
4. I feel the demand would increase once the proposed government legislative amendments to the house boat/river act took effect, these changes are to prevent house boat owners from mooring the boats on river and forcing them to use the off river marinas and also to prevent the house boats owners from discharging the grey/black water into the river & must pump into a mains sewer.
5. The developer has sold a few of the Berths off market & I've been told that at least 4 of the on market Berths have been sold. I'm not looking to buy any land in the development but have been told the sales of the land have been slow but steady.