Hi all,
Just curious as to weather anyone has some info on purchasing apartments in resorts as IPs. How would you go about finding a tenant for one of these? Do you look for someone such as a single person to live there or young couple? or do you rent back to the resort and they in turn book it out to guests?
All comments appreciated cheersGenerally you will find that resort management will have the sole letting & management rights ie you cannot independently lease the unit.
There are 2 types of return – pooled, whereby you have a set % of the income & expenses or income and expenditure is based upon your unit solely (then you will need to ensure that there is an equitable distribution of bookings).
Thanks for the reply Scott. In the instance of pooled return would the resort then take care of maintaining the room eg cleaning, fixing fittings etc? or is this something you would have to take care of as well?
You will find that there is an obligation on the owner to keep the property to a particular standard (same as all of the other rooms), this may be managed by the resort manager or they may require you to do it (generally done by resort though). You will find that you are sticking your hand in your pocket quite often eg cleaning, linen supply, change lights, common area cleans, rates, power, furniture/glass breakages, property maintenance…………….
Sometimes it can be hard to get lending for these properties. You might have a maximum 80% LVR that you can achieve, and they might be harder to sell as well. But if they work into your investment strategy then I don’t see why they can’t be a viable investment.
Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click AwayRyan McLean | On Property
http://onproperty.com.au
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