In the end, I try to be objective and not fall in love with the deal (this one included).

I have invested in property previously that many other investors/buyers saw as too risky (the ‘bad’ neighbourhoods) and these have worked out to be good cash generators and increased in value over time, not to the same lofty values of other suburbs, but as I…[Read more]

In the end, I try to be objective and not fall in love with the deal.

I have invested in property previously that many other investors/buyers saw as too risky (the ‘bad’ neighbourhoods) and these have worked out to be good cash generators and increased in value over time, not to the same lofty values of other suburbs, but as I was getting a…[Read more]

Hey Jaxon, you and Corey are 100% correct, capital growth potential is weakened due to the nature of the over 55’s for sure.

In regards to the math, total expenses are $10,432 and rental income $11,440, so a net positive cash flow of $1007 before tax offsets, which goes up to around $1,736 after offsets. It is around $33 income a week.

Not as…[Read more]

I have received advice today from my mortgage broker that Westpac are happy to provide a loan, secured against the unit with 20% deposit. It all seems to be stacking up so far, even finance is coming from one of the big 4 banks.

I found this opinion from http://www.homeloanexperts.com.au/property-types/over-55s-village/

Why are the banks so conservative?

The banks are concerned that it may be more difficult to sell these properties if the need arises.

As a result, most lenders won’t lend for them at all while others will restrict the amount you can borrow so that t…[Read more]

Interesting insights Corey. I can’t help thinking that the fact that lenders won’t lend to investors for these units is actually an opportunity. There are tenants who cannot look after maintenance of yards etc and who need residence’s purpose built for impaired mobility who can’t afford to buy their own unit. This unit had 7 applications to rent…[Read more]