Ouch !!

From: Glenn Mott

After seeing the following advertisement http://www.property.com.au/cgi-bin/ppmsg/ppsearch/ppview.p?

I called the agent to enquire. He advised that this group of properties was being operated as a hotel but that the rental guarantee had run out and that to achieve the 7% return indicated, the property should be priced at $160k. The original owners all paid around $225k so are sitting on quite substantial losses if they wished to sell now.

It seems the 2 winners out of this are the developers and the hotel management company who are 2 years into a contract that is 5+5+5. Any bets that the developers and the management company owners are more than just business aquaintences???

The agent also advised that most of the investors were expats working overseas who wanted to invest in property but did not want any management hassles....you just have to feel for these guys.

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Reply: 1
From: See Change


Couldn't get link to work

see change
it's better to be guided by your dreams than your fears
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