Hello all,
I have recently came back from north queensland, palm cove to be exact. And was amazed about how cheap some of these resort units were selling for. How do you guys feel about buying real estate in a resort…?
Excited and confused… please help..?
HI Stevie24
When you say units are cheap? compared to what??
I own a unit in a resort complex.
What I have found is that success is directly related to the competency of the managing agents.
When I first bought the unit the managers were very efficient and the place worked well. The unit was always tenented and there were very few problems.
The managing rights were then sold. This manager let the complex run down, didn’t follow-up problems and vacancies began to happen. Other owners became disillusioned and sold at basement prices just to get out. This reduced the valuation of all units.
As the complex is in FNQ & I’m not, I wasn’t aware of many of the problems that were happening. I was getting satisfactory reports on my unit so thought all was fine.
Now, new managers have bought the rights. They seem to be rectifying many of the problems in the complex but I think it will take time to improve the vacancies factor.
Cheers,
Shushar
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
We have 2 units in FNQ. 1 in Trinity Beach and 1 in Cairns. 1 perm rented and 1 in holiday pool. Very happy with both, however do your homework cause the agents know you are from out of town and they know what prices are like in other states. And are very happy to take your money!!!
TED
Cheers guys thanks for your input…..!![cap]
I alway think that resort unit is very expensive regarding management fees and you just can’t sack the management because they have management right.
I do invest in unit and alway nominate myself as executive committee because you can control the situation in the complex. If other unit complaint and need some sort of work the strata manager usually contact me first before going ahead with anything.
Every year they want to raise the strata fees, but I alway oppose and bring it back to the original amount or a bit highter.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Hi Stevie,
You wil also need to find out what your lender thinks of them – depending upon the size of the units some will require more than the typical 20% from you.
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
stevie,
The only thing i don’t like about big complexes is the value of the property is driven by the last sale price in the complex. Meaning if you have an inexperienced investor who has geared themselves to much and needs to sell in a hurry they sell it way under value, and guess what that will be the value of your investment.
There are far better investments to be had.happy days
gav
Hi Stevie,
there generally good – agree with Chan they there expensive on the management side but good in the sense that I think the managemant agrees that it will be rented the whole time.
Either way this is what I say: whether a resort, townhouse, unit, commercial property or whatever – what you need to do is calculate the math. See what the returns are and what the risks are – if the returns outweigh the risks, then its a good investment I’d say.
“If You never never ask, you’ll never never know”
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