What's the catch? (Deagon, QLD)

[ps0104]

Hi folks

I came across this one today: http://www.realestate.com.au/property-house-qld-deagon-114297559

$137k for a 1 bed villa in a decent location with rent of $238pw. On the surface, that's an excellent yield.

The complex, while not a retirement village per se, has been designed for elderly people and (apparently) has a waiting list for tenancies and an extremely low vacancy rate. Add in an ageing population (particularly in this part of Brisbane) and it all looks very promising.

So - what's the catch? If it seems too good to be true it probably is. Especially given there appears to be quite a few of these villas on the market at present.

The most obvious one I can think of it that very high body corp/management fees eat up much of the yield. Does anyone have any other theories? But that is pure speculation (I'm yet to find out what the body corp etc costs are).

Would you touch it?

Thanks

 

[Nth Brisbanite]

Why don't you contact the agent for more details?

 

[vaughan]

From the property listing:

"To be sold partly furnished, the villa is complete with dining setting, TV and cabinet, fridge and washing machine...."

So it's a furnished apartment, and you are buying the furniture -- and the responsibility to replace it as it wears and tears.

There is also strata costs to consider, this could reduce the returns considerably.

 

[Andrew_A]

To begin and since you can do this online or by phone anyway:

> Find the floor plan size
> Car spaces/allocations
> Waiting list for renting... check this claim carefully
> Strata fees

If anyone's still interested after that list is completed I can continue.

 

[Rolf Latham]

To begin and since you can do this online or by phone anyway:

> Find the floor plan size
> Car spaces/allocations
> Waiting list for renting... check this claim carefully
> Strata fees

If anyone's still interested after that list is completed I can continue.

I will add, call your lender or broker to enquire if the place makes for suitable security

ta
rolf

 

[ramblin]

I wish I knew what the catch was also. When we were looking for IP's in the past few months I kept seeing these come up. There is a lot for sale and that worried me...was everyone bailing for some reason? We ended up buying elsewhere.

 

[Andrew_A]

I wish I knew what the catch was also. When we were looking for IP's in the past few months I kept seeing these come up. There is a lot for sale and that worried me...was everyone bailing for some reason? We ended up buying elsewhere.

I thought if you worked your way through the list I provided you would have an answer? They are fishing tools more than a fish being served up on a plate ready for consumption.

 

[Beanie Girl]

So - what's the catch? If it seems too good to be true it probably is. Especially given there appears to be quite a few of these villas on the market at present.

One word possibly - flooding

Deagon recent creek flood information

http://www.brisbane.qld.gov.au/comm...-alert-service/deagon-creek-heights/index.htm

It might be too uncomfortably close to the designated flood area.
The overland flow path might also be a tad too close to the complex for the owner's liking.

Check with Youi insurance if they will insure this property and how much.
Apparently Youi has 100 year projection of sea level rises, which will in turn affect creek, river, estuarine, pond (!) level rises

 

[RPI]

I suggest taking Andrew up on his suggestion and posting the results here. He will clarify pretty quickly.

 

[ramblin]

I thought if you worked your way through the list I provided you would have an answer? They are fishing tools more than a fish being served up on a plate ready for consumption.

Thanks but I'm not buying there. Was just mentioning we were looking at them last October and decided elsewhere