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
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