retirement unit

[chris1]

Hi all,
Can anyone share with us any negatives they can think of in regards to buying a reirement unit for $80,000 with rent approx $160pw??
We realise that resale could be difficult as only for investor/ retiree market, but good cash flow to possibly off set a neg. geared property. The small initial outlay is also attractive.
Any thoughts????
thanks
Chris1

 

[Aceyducey]

Originally posted by chris1
Hi all,
Can anyone share with us any negatives they can think of in regards to buying a reirement unit for $80,000 with rent approx $160pw??
We realise that resale could be difficult as only for investor/ retiree market, but good cash flow to possibly off set a neg. geared property. The small initial outlay is also attractive.
Any thoughts????
thanks
Chris1

Chris,

From the information provided it sounds like a good buy, but there is information you have not provided which is really required to analyse the purchase fully.

1) What is the vacancy rate in the area?
2) What infrastructure & facilities are in the area?
3) How much building of other units is going on in the area?
4) How old is the unit (for depreciation and) - does it require any work?
5) What are the strata fees like - what are they likely to be in 5 years (massive increase? Roughly the same?)

There are probably some other questions that also need asking - and don't foget that while you're discussing the property on the forum another investor might be putting down a deposit, so don't delay too long before deciding

Cheers,

Aceyducey

 

[chris1]

Thanks AceyDucey,
We have a few more details now, and all but your last point looks favourable. We still have to talk to some more people, but it appears to be organised as a trust, with all expenses and rent put into a pot and anything left over is divvied(?sic) up to the investors. It is a bit like DHA hosing in that they have a pm who looks after everything for you...you just have to pay!! Will let you know if it is worth persuing.
Thanks again
Chris1