Good question.Buyer perception is that anything over 21 years is a life sentence, anything under and they start amortising the lease purchase price into annual costs.Leases with only 15 years remaining are not easy to sell.One formula would be – the market value of the lease with 25 years remaining minus the cost of buying 10 years from the…[Read more]

Hi Steve.Unlike the US situation where many Americans had "walk away" mortgages and the Banks copped heaps of "jingle mail",  Australians are and feel accountable for their housing debt, even when values fall, a bit like "for richer for poorer" , and they'll back it with continued hard work to dig it out of a hole.  They know the values will re…[Read more]

Nice to have so many ways to skin the cat, options are a pleasure to have, Rent vs Buy works out the same either way for us. We prefer to rent, optimise the capital for investment, max the income and then enjoy options on what to do with it. Cash is 100% king, whereas leveraged equity cops LVR discount and begging at the bank again.Good to crunch…[Read more]

I guess it depends on what phase of wealth creation you're in, like acquisition or whatever. I liquidated and rented, while seeking the right motel property to buy (which returns me 20%+, ) so for me renting frees up the bulk of my capital for a better use of that capital than buying a PPOR.  Also, if I did buy a PPOR and use it as security for b…[Read more]

Hi HowardWelcome to the Forum.If you owned the freehold of a motel with a tenant in place, it is a passive investment, where the tenant operates the business and pays you rent. Typical rent returns around say 9% – 9.5%.There are a number of criteria for the selection of an investment, and location is one of them. The strength and stability of the…[Read more]

Hi st81hp79Glad & sad someone else is seeking the same solution.Perhaps I should fax my accountant and request a quote from him for engaging a tax / trust specialist to look at my situation  and propose a plan and report back to my accountant and include in the quote the cost of my accountant's evaluation of the proposed plan. Might try that,…[Read more]

Hi god_of_moneyNo I haven't, what's the story on them ?Cheersthecrest

Hi EarlstongardensBanks may want a valuation of both leases. Costs about $3K each.Michael is right about the 60-65% LVR currently.Cheersthecrest

Hi st81hp79Looks like your intended words didn't make it on your post, only a quote of my post.Please try again. Any comments welcome.Cheersthecrest

Hi RuthThere are enough big country towns with growth, say over 20,000+ population so maybe those are a better risk.In NSW there are strong growing towns like Dubbo, Orange, Parkes, Bathurst, Goulburn, Wagga, plenty to choose from.Cheersthecrest

A rent increase demand for the stated reason of offsetting water costs would very likely be overturned by a Tribunal even if morally reasonable because the legislation states that you can only charge for water as per the individual meter for that tenant. No meter : no charge.A rent increase demand for "market" reasons will stick if the increase is…[Read more]

Might help to review in detail all the ways the agent is marketing the property, assuming you've been getting advertising invoices.Put signs on the fence and building for those who want to expand in the area or are driving around prospecting.List with 2 other agents, competition creates urgency and activity.Insist on being included in tenant…[Read more]

Hi RXracerYuk factor of 10. Wonder if the ant and maggot problem is related ?Have they got pets ? Sounds like the pest controller needs to kill the whole food chain before it enlarges any further.Suggestion – After the pest treatment, request in writing to the tenants to schedule some weekly inspections inside the house for the next few months…[Read more]

Hi RichardIf necessary, yes. Sound timely expert financial information is vital, for obvious reasons.Post here, or PM me,  or email with what you have in mind .Thanks RichardCheersthecrest 

Hi Catalyst   "   I guess we're seeking a great accountant / financial planner who understands property, tax and investment structures, who is friendly, has a sense of humour, likes people and genuinely wants to help them with their wealth creation. "  Thanks for your thoughts.There are many great people out there, including "great" accou…[Read more]

Here's an update for anyone following this thread.Current offering by NAB is 60% LVR on a strong motel business, (leasehold), and can be improved to 70% if there is sufficient experience in the CV's of those operating the business. Leaseholds selling for above $700K and returning 30% ROI should show at least a 20% return ROI under management…[Read more]

Commercial property investors must be feeling the squeeze right now, with commercial loan interest rates near 9% which is about the same for many returns on commercial property. Makes it hard unless you have a big deposit.But, don't forget, for those interested in motel leasehold investment, that motel leaseholds operated under management costing…[Read more]

Suggest you see the ad in the right hand column "1 on 1 mentoring, make your own enquiries.Our mentor was Brendan, highly successful for us.Cheersthecrest

Hi RechargelifeIt's a long path from where you are now to the front door of a motel of your own.But it can be done.I suggest you read all the posts on this forum about motels, talk to the Chains and ask them about the benefits of membership vs fees. You usually don't inherit previous owners' chain agreements, usually free to make your own…[Read more]

Hi Alec
Welcome to the forum, enjoy yourself, it’s a powerhouse of info and help from members, it’s been a big help to me.
Like any Forum, add your help and input and members will help you in return.
Hope it’s as profitable and enjoyable for you as it has been for me (and many others).
Cheers
thecrest