Hi Jacko10. Without knowing other details of the leasehold, on face value it is overpriced at ROI 24% ( Nett $170K is only 24% return on cost price of $720K ). 30% is more like the market rate, so price should be more like $570K, provided it is in good condition, minimal maintenance, reliable income etc. (remember school groups are low tariff but high wear n tear, sorry kids). Hope the rent is low. Economic downturn on spending and reduced consumer confidence will impact immediately on school groups and on parents' excursion spending decisions except compulsory curriculum trips. Periods of tight lending reduces buyer numbers so that should reduce sale prices if it continues long enough. But these comments are only based on very limited info you have provided and the whole picture of the leasehold may provide compensations. What a difference a week makes in banking attitudes. Lending for motels has tightened since last week when the USA 's credit rating slipped. Banks spook like gazelles, or make a good show of it at any excuse. More reasons to use finance brokers, like the ones who regularly post their help on this forum and have thousands of posts to their credit showing how long they have been on the forum helping us. They're the ones who deserve our business enquiries. Had exactly this problem with NAB this week and I'm fuming at NAB. Customer service from banks is really about the smile on the face of the tiger. And they serenade us about building relationships….? . So when finance is tight, you need to structure a quality deal through your accountant showing cash flow projections, with a quality property and supporting valuation, and submit it through an experienced broker thereby surrounding yourself with a strong team. Post more details if you want more info. Good luck Cheers thecrest