what area???

let me know how it goes!!!!

desk top

thank you michael for all your advice, appreciate you taking time out to inform me.

i have talked to many other investors about serviced apartments and most say the same thing. “stay AWAY”!!!!!! everything you have mentioned makes complete sense now.

not having had alot of investing experience in property my first attraction was the rental…[Read more]

the one thing ive learned by reading steves book is ask yourself one question when investing in property:

“What are you buying for? and how do you intend on making money from this investment”?

positive cash flow – earn money from day one?
negative gearing – cost you money now for possible capital growth in the future??

Why did you buy these…[Read more]

hi derek,

have you had any experience with such property investments? or do you know anyone that has??

thank you everyone for your advice.

ive looked into the contracts for a number of serviced apartments in the melbourne CBD. the deal usually is this.

terms are 15 – 25yrs with annual increases. however:

each term is based on 5yr only. thereafter the tenant (being the hotel chain) issues a rental notice before the end of the term to stipulate…[Read more]

thanks jo

btw Jaffasoft, i really like your property calculator….fantastic idea

I do like the idea however I was not aware that such investments are hard to find Finance for, like Terryw kindly pointed out. I like to know people that have invested in similar apartments to make me 100% confident….you can never get enough info

Desk Top

$400 p/w would be a great return if he can pull it off.

The apartments I have been looking at are with established hotel chains. You would be bound by an existing lease agreement and the property is managed by the hotel. Your income is set in the agreement with annual increases. The thing I find attractive about these kinds of investments is…[Read more]

hi russ…thanks for the tip. im not sure what OPM means, can you please clarify?? buying 2 smaller IP’s are you suggesting that they should be positive cashflow properties? im not sure if the combined rent would equal the amount i could receive for the one larger IP property. perhaps if you look for properties with higher potential capital…[Read more]

hi..not sure who you’re after..

this is desk top from melbourne

thanks simon, appreciate the options you are suggesting.

Simon said:
“They lend 65% of the total valuation which covers them if they need to sell the property to pay the debt”

will they ever lend 100% of the value of the property, and then use the 2 properties as security to recover the debt??

desk top

very good question…..i would also like to know how lenders manage unemployed clients with equity.

desk top[suave3]

thanks chan dollars

appreciate everyones comments

desk top[suave3]

i havent lived in it however ive been told that if you sell after a certain period of time, you are not subject to capital gains. ive owned the property for over 16yrs.

desk top

im confident that i will be able to make the repayments, and i wont be un employed forever! id would much rather look for another IP now rather than later. out of curiosity…if i did sell, will it be subject to capital gains??

desk top

thanks kay henry – what kind of smaller properties do you recommend that will return a higher yield? i was thinking if i could hang on to this property, seeing that im still at home and my outlay is low, i could use the equity to service another “positive cashflow” IP. im yet to find a property that can return a positive income, (but still…[Read more]

hi mel

thanks for the advice, appreciate it. looking like i will find new tenants and rent it out again. after my renovations, i should be able to get a higher return.

i will also take up your advice and talk to a mortgage broker.

cheers,
Desk top

thanks for the advice…..

not really familiar with wraps and how they work. have only read about the concept. also, im not sure what you mean by 20k per month???

desk top