Hi Royce.

Salary $137K and you're giving Dad $50 every 3 weeks, ?  well I spose it's the principal of the thing but I suggest you make it a coupla grand and start your journey on a better footing. 

If you're not sure where you're going and how to invest, Terry certainly has the expertise to make it as simple or as comprehensive as you need, but with flexibility, which you need when there's indecision.

I'd be living on the $37K and investing the $100K p.a. for a few years, while the going's good.

Cheers

thecrest

Hi Bacon.

Is the a/c working properly ?

Firstly, is it rated as big enough for the size of the apartment ? Are the filters and especially rotary fan blades clean and dust free ? It's amazing the difference in temp achievable when filters and rotary fan blades are cleaned, especially if they're partly clogged.

Cheers

thecrest

Providing prospective buyers with full financial information on a property is the agent's responsibility. If he hasn't got it, tell him to get it, it's an important expense.

cheers

thecrest

Hi LeanneB.

Not the norm, and not true. Suggest you deal with someone else.  The terms and conditions of the lease can affect the value of the leasehold so a copy of the lease should be available same time as the P & L's and careful reading and full understanding of the lease forms an important part of your due diligence, so how could any reasonable broker with nothing to hide expect you to make an offer without being given a copy of the lease.?

Some leases are so oppressive and onerous, valuers react negatively to them. Those leases reduce the market price. 

If you are ok with reading legal verbiage for about 35 pages with the lease, then as you read through,  make a list of the following :

what items does the landlord have to pay for to replace or repair; same for the tenant;

how is the rent increase calculated, and graph rent increases out for 5-7 years and see what it amounts to;

in the case of partial or total damage by fire or flood, is the landlord required to rebuild;

how long before the lease expires;

are you held over as a guarantor for the new lessee if you sell the lease in the future (unbelievable but true);

if it's an older motel, who pays if you have to excavate to fix old plumbing or stormwater or wiring (you can't inspect it);

List all the things you have to pay for in the lease, inspect them all to assess their condition and the likelihood of that expense, inspect all the motel for likely expense, and make allowances accordingly in any price discussions, and don't forget the signage which is expensive and makes money or repels guests. Naturally you must get well informed legal advice for yourself and make your own decisions based on your own due diligence. 

Always best to use a specialist in any field if you can find one. Otherwise, use one who is capable and at least has your interests at heart.

Some brokers recommend their own experts, but that seems very close to vested interests to me. Can't see their expert suggesting you don't buy something the broker wants to sell you.

You're blessed with your kids and their background. 

Cheers

thecrest

Hi LeanneB.

Busy hwys go east/west, and go north/south. Where they intersect is a good start. The map will tell the story.

Some towns are destination towns if they have enough to offer, some are only through towns because they lack natural or man-made attractions. You can search for those figures from Visitor Information Centres in those locations. Councils and RTA (now RMS) have traffic counts, but getting cooperation from RTA would be doubtful. Also the ABS provides detailed information like Occupancy for towns and regions. Strong businesses need good reasons why they have been strong, and those reasons need to be proven to be enduring. 

Leases are a lengthy subject, they must be well read and fully understood by someone on your team. If it's under 20 years, expect to want to buy more years down the track, and the landlord might say no. Best time to negotiate more years is when buying – the vendor can probably negotiate more years at that time better than you. Very important items in a lease are – who pays for repairs or replacement of what items; how is the rent increased; is the landlord required to rebuild partial or total damage like fire, flood etc; but you MUST get legal advice re leases and buying a lease, be guided by your solicitor.

 We raised 2 kids in hospitality like motels, very challenging, very educational for them. They like being useful, plenty to do. Casual work pays too. SOHO is never easy. It helps if the school bus stop is closeby.

Good luck

Cheers

thecrest 

Choady is on the money. People say it's not just what you earn but how much you keep.

If the goal is important, then shop frugally, live as cheap as a mouse for a month, just try it,, turning off lights like mad, reduce heating or cooling, walk anytime possible instead of the car, delete bought lunches and cappuccinos, stay home, do everything yourself. It's only 30 days, and then u can ease the choker in alternate months. You'll amaze yourself.

What's your goal worth to you ? You'll soon find out.

Cheers

thecrest