hi. hope u can help me here.been looking at pensioner units.they sound like a good investment.but what i would like to know is do they really go up in value (capital gain).Buying brand new they are around 105,ooo.Seen some on website from 65 to $80.000 dollars.Im confused any help would be appreciated.
t.c.butterfield
hi trev,
from what I have heard, getting finance for these units would be difficult unless you put down a sizable deposit, due to the size of the units and their resale ability. Banks tend to be conservative when lending on these types of properties. Your best bet is to speak to a broker. There are also the high management fees etc to consider. These would eat in to your cashflow. Hope this helps a bit.
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
**********************************Hi Trev,
PC is correct most lenders don’t do an 80% lend on these and as such they may suck more from you than they give back. It really is a question of balance for you and your circumstances.
Management and ongoing costs can be a little high and rents are typically 85% of pension + rental assistance receied from the government. Soem units also include a food service.
Be aware they haven’t been fully tested as a growth option yet being relatively new on the market- as such growth is questionnable.
I recommend you do a search on pensioner units and also retirement homes as the topic has been discussed a bit before.
Derek
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