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Hi the crest
Thanks for the reply, your knowledge is excellent and we really appreciat the tip and advice. Will look over lease and compare to a commercial property lease.
Hi The crest
Just reading previous posts and I would be interested in looking at your lease, this might highlight some areas of concern. Would this be ok. Also when you sold your freehold did you draw up the lease or did the purchaser and what lease term did you or the purchaser want.
We are looking coastal Queensland. Price under $2m. with rental returns of around 9%. – 10%. Are you aware of motel leases and is there a provision under Qld law for a market review on rents. Some leaseholders have these in their leases and some don't. We would like to have this written into the leases(we are looking at one that the owner will stay on as a leasee and sign a new lease), that at the end of each option, e.g. every 5 years a market review takes place therefore an additional increase in rent happens, over and above cpi. What should we look for in a freehold motel, approx 30 – 40 rooms with regard to age of building, maintenance of building, grounds, electrical, hot water systems and roof. What are the downfalls of motel freehold against general commercial buildings? Do the owners of the freehold have lots of expense or simply buy and forget?
Hi thecrest
I have been looking through your information and I have a question. We are looking at a passive freehold investment in Queensland, we currently have commercial property and comparing the difference in leases. Can you tell me is a freehold motel has a provision or can have a provision for a market review at the option of the lease, 5 x 5x 5x, after each 5 year option a market review is in order and each other year cpi or 4% in the norm. We have only started researching motels, never crossed our minds before but returns look good. Any other downside to motel freehold against general commercial properties? Would appreciate your comments. Regards
