Peppers at Salt Village, Kingscliff

I am currently looking at purchasing in Peppers resort at Salt Village. My reasons are as follows:

1. Lifestyle investment, I plan on using it once or twice a month for 1 or 2 nights which is similar to my current use of a similar townhouse on the Gold Coast.
2. Pooled income which will allow more predictable income and not rely on my unit being used to make an income, it also allows me to use my unit over the weekends and at peak times and not have any penalties attached to its use over these periods.
3. 5% for the next 3 years guaranteed return net on the unit (this is a brand new unit, 3rd/top floor hinterland facing)
4. Keep and use for at least the next 5 years if not longer if all is well
5. 2 bed unit which is dual key meaning that even when used you still get a portion of the pooled income.

My main concerns are:
1. What happens after 3 years, what sort of capital growth should I expect if I need to sell
2. I will be using an interest only loan and heavily geared so capital growth is really my main concern.
3. High body corp fees after year 3, they are high now but absorbed as an incentive.

Any issues that anyone has had with a similar lifestyle investment or anyone who has an investment here or similar it would be great to hear your opinions as well.

I know that there are better investments out there which I am pursuing as well, however I am stating up front that this does suit a lifestyle decision that I have made for myself so it is really about getting the numbers to make sense, not for them to be compared to another investment.

I do appreciate any comments to assist me with this decision.

Regards
Neil
 
Hi Rolf, the bank has offered 100% loan plus all costs on the property at 7.37% if i want it. I do have some security though so i guess that makes them feel good as well as another loan with them already so my establishment costs are nil. What do you think? I also need to find a good accountant/tax person who knows property and can do some hand holding. I have searched the board but still haven't found anyone near Milton in brisbane that seems suitable. I am a real newbie so need alot of help. Any suggestions.

Cheers
Neil
 
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