Hi
I purchased a unit in a hotel complex a few years ago, bookings have been consistent and pretty much cover the mortgage and utilities, downside is that due to current market forces the value has gone down like most investments
However the major problem is the cost of the body corporate charges and the previous committee sucking the owners dry with extortionate costs, they have now been removed and the new BC appointed whom are trying to reign in the costs but its left me and a few others owners with a sizeable debt which personally I cannot repay and with the interest at 30%… its escalated out of control. They have now appointed solicitors, applied court charges and unless I can come up with an acceptable plan will seize the property for sale to recover the debt.
Would appreciate any advice or views on this and if they have the authority to carry out the threat and then what happens…I'm not in a position to pay the debt but could the ongoing quarterly costs now its all be restructered.
Any help much appreciated!
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mulderbauer wrote:HiI purchased a unit in a hotel complex a few years ago, bookings have been consistent and pretty much cover the mortgage and utilities, downside is that due to current market forces the value has gone down like most investments
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Really? None of mine have gone down.
Hotel complexes are always risky. I'm guessing you bought off the plan?
Sorry to hear about your situation. Maybe try for a personal loan. At least the interest rate is manageable. If the price has dropped you may need to pay back some of the loan also. Difficult situation to be in.
Good luck.
Did you look at body corp costs before you chose this property?
The reason I ask is that by your own admission the rent has pretty much covered the mortgage and utilities so I struggle to understand why you haven't been able to cover the body corporate costs.
While you are doing some navel gazing the fact that you are not paying your body corporate fees over an extended period of time is placing an impost on other investors.
Are you completing a PAYG tax variation and do you have a depreciation report to assist with cashflow.
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