Motel Apartments/Units

Viewing 3 posts - 1 through 3 (of 3 total)

The Pups
Member
@the-pups
Join Date: 2005
Post Count: 15
April 3, 2006 - 6:18 am
Hey all,
Just curious as to whether or not anyone has had experience with motel appartments or units. There seems to be a few about that, on the face of it, offer decent returns. I cant help but feel that there is more to it though, the old “too good to be true” cliche keeps springing to mind!
So if anyone can offer insights into this type of investment re: capital growth, hidden costs, things to be aware of, depreciation for tax purposes, or even just positive or negative experinces people may have had in the past would be tops!
Belinda and Daniel
AKA The Pups
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
April 3, 2006 - 6:53 am
I agree with the too good to be true feeling.
you need a bigger deposit, get a higher rate and the demand isn’t there for resale.
Same with studio apartments under 50sqm, purpose built student accm and retirement homes.
Stick with normal residential dwellings or straight commercial and you wont go wrong.
These things sell on a higher yeild for a reason…
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Dave L
Member
@dave-l
Join Date: 2005
Post Count: 40
April 3, 2006 - 11:15 am
Hi Pups
I have recently purchased an appartment which gives me the option of having it managed by a company or renting/ living in it myself. Returns are guaranteed 6.5% for two years if you have it managed no guarantee if you dont of course. Paying interest at 6.72% plus about $3000 to corp body, rates, sinking fund etc does not make it a real attractive investment, take into account good depreciation for the first few years and still not so good. The reason i bought was its in a good location near the city and harbour close to good restaurants at a very reasonable price and the fact I can manage it myself if I choose. The LVR was 65% as it was 48sqm but it had some nice park views and I felt it might be a good long term investment. Just one of those gut instinct things.
Dave