All Topics / Help Needed! / Chalet investment in health retreat

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  • Profile photo of Tracey HobsonTracey Hobson
    Member
    @tracey-hobson
    Join Date: 2006
    Post Count: 1

    Hi there

    We are looking into investing in a chalet within a health retreat – $110K – it will be positive geared but feel that there will be no capital growth – the health resort pays and looks after the property with a 2yrs lease option left with another 5 year option after that – is it worth the small cash flow per week

    kinds regards

    Tracey[blush2]

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Tracey,

    I believe you have really answered your own question.

    Probable limited capital growth, minimal cashflow, probably low financing LVRs and occupancy rates firmly tied to performance of the health retreat.

    Without knowing the location details or the trading name of the health resort I suspect that your investment is too heavily aligned with a business operation.

    For me keep things simple and remain with more standard proeprty investments.

    Derek
    [email protected]
    http://www.pis.theinvestorsclub.com.au
    0409 882 958

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