Hi, I was wondering if anyone had any advise on investing in mobile homes? The reason being that my sister in law currently lives in park on the Tweed River in NSW & there was some storm damage done to it and she wants to rent out another permanent m/home in the same park. I was thinking about purchasing one for around $30 – $40k and have her rent it @ $130.00 per week, she would be an excellent long term tenant, but after paying site fees($86 p/w) to the park it would only leave me with about $44, does anyone know if the site fees would be tax deductible or not? And also what if the park was to be closed down, would I loose out alltogether if the home couldn’t be relocated or would there have to be some kind of buy out or compensation do you think? I just though also it might be good as a holiday house in the distant future.
Any suggestions would be great[
]Cheers
Ginayou may sent a email to Matt P, He/She may give you some advice.
Regards
Thanks I’ll give it a go[
]Yes the site fees would be tax deductible if you were renting it out. But these sort of investments are high risk as you basically have no security. Depending on what sort of contract you have with the park, you could lose everyhitng if the place closes down.
If you are only going to make $2000 per year for $40,000 investment, then that is only a 5% yield. You could get that with any old bank term deposit these days and your funds would be returned at the end.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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