On a recent trip to Fiji I were rather interesting in a place called Denarau Is. While it is an island it is only a short bridge to the mainland. It is 10 mins from Nadi Int airport (not under flight path) has 3 Sheraton resorts, Novatel anf Hilton resorts. Also is 5 mins from major marina. Land cost $120k Fj or $95k AUD for about 800 to 1100 mts sq. Or villas start from $200k Fj furnished. Rental as holiday rental would be about $200 p/n for 1 br. As perm rental it would be about $300 p/w.
Wondering if any one has any thoughts ? Bare in mind only 7% of the land in Fiji is available as freehold the rest can only be leased from the native Fijians.[8D]Hi Rickhy,
$200k property rent only $300 per week is negative geared property. Why would be buy overseas -ve property when we can get here plenty.
Cheers
Hi Propertylogist,
You misread what I wrote, long term rental $300 p/w (not $200 as you said) and the other option of holiday rental of $200 per NIGHT. Figures from developer anticipate 65% occ if you choose to have a 3 mth holiday block for your own use.Points to consider –
You need to make sure 65% occupancy really translates to 65%.
Also they are putting up resorts in Fiji at a fast pace – you need to make sure you dont end up getting superceded.
Additionally, Fiji is not a very politically stable place – it’s had 2 coups in 10 years. Ask the locals what happens to the market each time – it dies big time and take a long time to recover..
It’s also in the tropics and cyclone prone.
I was in Fiji a couple of weeks ago so decided of have a look at property – the yields on property (at least in Suva) is very average for a higher risk location – about 5%, so its negatively geared .. if their tax systems considers this.
New Zealand is a much better option.Cheers,
Tim BarrettHi there,
Having been to Fiji in the last 6 months and having visited Denarau Island, although it’s very beautiful, I tend to agree with Tim. There is much unrest within the people, wages are lower, etc.
There are spots where buying property is potentially more lucrative (ie. Raki Raki), some in Suva etc, but why take such high risks when you can get the same yields here in OZ?
Buying as a holiday rental is a good idea, except Danarau is a very pricy area due to the Sheraton Resorts etc, why would people pay $2-300 per night when they can stay there in the resort for less (especially UK and USA travellers, where things are way cheaper due to the exchange rate)?Cheers
Soosh [
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