Hi there,
Fairly new to the forum. My name is Kurn. I have recently been looking at buying IP and particulary at the hotel room investments in the city. Basically they gurantee a yield of around & % for upto 20 years in some cases , so you effectively sublet to them. They also pay the body corporate fees and seems like a great deal. Cashflow is good however I guess the capital appreciation would be slower. Has anyone purchased one of these or has any advice re. pros and consor similar experiences as looks almost too good to be true. No tenants to worry about guaranteed income and hardly any fees.
Also a separate matter I recently sold a house in UK and t ferred the cash to Aus so have quite a sizable amount of cash to invest and could buy either one good 3 bed house or 2 apartments cash however re. investing strategy etc would welcome advice on best to use cash to buy one property outright or best to use as deposits for a couple in order to build portfolio. Other scenarios could be to buy one outright then use equity to purchase another etc.
I guess there would be tax implications etc? Any pertinent advice would be most welcome. Thanks for your time.
Kurn
It depends how involved in property investing you want to be. I had one for a few years as I was away a lot. As the capital growth depends on any increase in rental, I sold it when I had more time and I wanted property that I could affect the income yeild and capital growth of, by improvements, etc
I sold it and made a profit, but mainly because the market was accepting a lower yield.
These are not for everybody. Do lots of research.
Kurn
Look very carefully before you take the plunge for many reasons.
Do a search and I am sure you will see various previous posts commenting on such an investment.
One thing is trying to finance such a project especially if it is a tiny single hotel room under say 25 sq m's.
Richard Taylor | Australia's leading private lender
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