Who do you hope to onsell to?

[miket]

Property Investors,

Besides the 'never sell' rule, who is dedicated to servicing the lifestyle needs of wealthy baby-boomers who are trading their suburban homes in the big city for sophisticated property easily accessible to perhaps beach side or even canal suburbs in search of idealistic retirement?

What is your strategy or criterea when buying an IP? Who are you hoping to onsell to and reap the Capital Gains?

Personally I prefer to purchase property with seaviews, walking distance to beach or canal property with deep water access. Even dabled in large secluded rural acerage lots with easy drive to a thriving township. The gains are very good and seem to attract buyers with money, lot's of it purely for the lifestyle these purchasers are adapt too.

I would be interested in your views.

MikeT

 

[iLuxo Jr]

Originally posted by miket
who is dedicated to servicing the lifestyle needs of wealthy baby-boomers who are trading their suburban homes in the big city for sophisticated property

We have done. The place we live in is a 255 sq metre "townhouse" (3 level modern interpretation of a terrace would better describe it) in inner Sydney. There were several "must haves" when we bought it and we know few new developments have them. I have never missed the traditional house & garden.

The only comparable properties being built now in our area are selling for 4 times what we paid 5 years ago.

The IP's we have are the sort when a prospective tenant walks in the door their jaw drops a couple of inches when they see the view and they're reaching for a chequebook faster than you can say it.

Have had 2 older units in waterfront site in inner Sydney 16 years, they are like a small private resort to live in (we lived there for a while). Lovely city & water view, facing east, pool by the water.

Also another very posh one in Pyrmont with wall-to-wall view of Darling Harbour, Harbour Bridge, Balmain right behind casino (with 24 h cafes, light rail, bus stop AND a taxi rank at the door. This one we bought new, it was by Mirvac and is a top grade one. Pools, all mod cons.

Have to look after the tenants - they expect everything to be perfect for what they're paying, and we have renovated the older units (one of them twice) in fairly upmarket style.

The other problem is that there comes a time when the investors need to get control of the body corporate and make sure the building and grounds are kept up and given a major refresh when necessary. If you let a bunch of old scrooges run it, they will penny pinch and let the building run down till it is fit only for backpackers.

The rental return isn't spectacular - we're in these for capital gains which have been so far bout 14% pa. The longest we have ever not had a tenant is 1 week (usually a few days).

 

[willair]

iLuxo Jr
Well done,and good luck..
willair