Hi there,
I was hoping to get some feedback from anyone with experience in investing in Aged Care strata titles. I’ve come across some opportunities ( i’m new at this game ), where a management company gaurantees a leasing fee with options for further 5year leases. I can see +ve cash flow possibilities, but is there anything I should look out for?
Any advice is most welcome !Finance will be the issue.
Many lenders will want to know that the property can be used as a normal self contained residential dwelling if you want a residential loan.
Otherwise commercial deal applies.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hello Humbolt, I advise you to do a search on this topic, in the past this has been discussed on the forum and there may be usuful info for you. Just search for “pensioners” and “aged care” etc and info should come up.[
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Thanks guys. Did a search already, and can’t seem to find any information regarding aged care serviced suites as strata titles though. Assuming that these are either very new, or just simply a bad idea I haven’t worked out yet !Hi Humboldt,
We are about to finalise purchase of a couple of aged care units in Qld. We have quite a diverse portfolio and this is just one of our investments. The bank has treated it as a residential proposition but only lent 70%. The two dwellings are side by side so eventually when hubby and I get to geriatric status we can move in and continue to annoy the hell out of each other. []
Fibejebe.That’s pretty cool Fibes, then when you argue you can slam the door and go back to your own place!!! [
]Cheers
MelI think it is important with PI to have a diverse range of investments. That is why we added the retirement village to our portfolio. We also have an inner city apartment, house and land, and a development block which currently has an old house on it, but is zoned R40 for a four unit development in the future. Whether we personally develop it or get the DA approval and sell to a developer remains to be seen. I sold my PPOR yesterday (settlement 18th Feb) so now in the market again for more investments. YIPPEEEEEE! [
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Fibejebe.That’s interesting Fibejebe. I wonder if my suite will be treated as residential or commercial, especially as it isn’t standalone.
Still unsure if this is a disaster waiting to happen or a great way to enter the investing realm.
Thanks for the adviceDon’t know a lot about the Aged care units, only that usually Tenants enter into an tenancy agreement with the on-site management and allocate 85% of the aged pension and 100% of the Government rental assistance, rent usually inclusive of meals, laundry costs. Owners costs ( Management and body corporate ) paid by management out of rent and the remainder goes to you- the owner Monthly, rents reviewed 2x year according to pension reviews…
And finance who ?
These deals seem to be popping upall over Queensland, saw a few advertised on API magazine with some form of ‘rental Guarantees’
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hi Guys,
Isnt true that on Aged Care strata titles, you must be age 55 or more to be able to live in one. So really, if so, aren’t you limited to which area of the market or people you want to targer?
Cheers,
sis
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