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thanks every one,
I must admit that I basically am doing all the thing you have mentioned, ie good due dilligence, finance arranged and specific clauses in contract ect. It’s good to know i’m on the right track.
My original question was a general one for my enlightenment and something that just occured to me. It seems to be sorted now as well as having generated some interesting comments. Thanks again for your thoughts
coops
Thanks Matt
I understand that a lot of the due dilligence shoud be done before you make an offer and you’ll have to excuse me if My questions seem silly but i’m new to this.
It’s just that from all Ive seen and read that the fewer the clauses in an offer the better. My thinking being that if due dilligence is finding out all you can about a property this would include inspections ect. therefore a due dilligence clause should be a catch all clause and cover all bases. Or have I got the wrong end of the stick alltogether.
thanks
coops
more info for you,
It is a new two bedroon chalet in a rainforrest getaway on the gold coast hinterland. The company is well established and been around for ever with the prinicipal owner having many years of commercial, tourist and corporate experience. this particular business, under his management, has won numerouse tourism and hospitality awards.
This particular business caters for day visitors, weekend and extendended stays as well as corporate functions with conference facilities, resturant and bar ect, as well as many activities such as fosicing and hourse riding. there is also a caravan park and small motel on site.
The unit is fully furnished and all outgoings met by vendor. My only expences are my personal ones involving the purchase of the property. I am able to on sell as long as the new owner takes on the lease. Similar properties with the same deal in the late 1990’s made acceptable capital gains.
I haven’t delved too deep as yet as I thought the figures (7% return with interest rates the way they are) were a cutting it a bit too fine and I was concerned about commiting to a 20 yr lease, also as it is not a proper residential property the pool of potential buyers for resale would be limited. I imagine that the company wish to dispose of some assets and gain working capital.
well these are my thoughts, any advice.
Thanks coops
