Would you be wary of this IP?

[Electro]

Or could it be ok...

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007693200#

The description appears to be one of those "too good to be true" deals. It appear as though this will be CF+ from day one and look good even though the rent increases are fixed.

Is there a catch? Do you see anything wrong with this investment?

 

[Electro]

After another look I think I found "the catch".

"Leased until January 2011, and the tenant has a further 3 x 5 year options to extend the lease until 2026."

Does this mean after 2011, I can't kick the tennants out.. Is it a Quest Apartments restriction?

 

[luvvit]

i think my first question would be, how much are Quests' management fees, as Im sure that'll come out of your monthly repayment.

Also, the lease... 2011 is cool, we could all live with that. But can the lease be broken by you after the 2011 deadline? or do Quest get the say in if they keep it till 2026..


2026, gawd thats a long way off.....

 

[Electro]

2026, gawd thats a long way off.....

That's what I thought

I guess I'll have to call to find out further details.

 

[jaycee]

Service apartment.

Usually decent cashflow

Do a search for 'serviced apartments' on the site, you'll find a lot of discussion and information on them.