New to property investment and need some advice. Have an oppertunity to invest in a specilised property with a 20year leas back agreement returning a garenreed 7% net return cpi indexed.
thoughts
alan
coops- please provide more details so we know what we’re talking about when we give our long-winded, gasbagging, hot-air reply- hehe :o) Oops- I was channeling me!!
Seriously, we need more detail to answer properly.
kay henry
Agree with Kay, more detail please…However, in anticipation of that, I am pre-empting some of my questions….
Whos is the person/organisation giving the guarantee? Will they still be around in 5, 10 years
What are opportunities for capital growth? Location
Is the property ‘specialist’ because it is designed specifically for lessee? Could it be leased out to another tenant without substantial costs?
James
And residential or commerical?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
more info for you,
It is a new two bedroon chalet in a rainforrest getaway on the gold coast hinterland. The company is well established and been around for ever with the prinicipal owner having many years of commercial, tourist and corporate experience. this particular business, under his management, has won numerouse tourism and hospitality awards.
This particular business caters for day visitors, weekend and extendended stays as well as corporate functions with conference facilities, resturant and bar ect, as well as many activities such as fosicing and hourse riding. there is also a caravan park and small motel on site.
The unit is fully furnished and all outgoings met by vendor. My only expences are my personal ones involving the purchase of the property. I am able to on sell as long as the new owner takes on the lease. Similar properties with the same deal in the late 1990’s made acceptable capital gains.
I haven’t delved too deep as yet as I thought the figures (7% return with interest rates the way they are) were a cutting it a bit too fine and I was concerned about commiting to a 20 yr lease, also as it is not a proper residential property the pool of potential buyers for resale would be limited. I imagine that the company wish to dispose of some assets and gain working capital.
well these are my thoughts, any advice.
Thanks coops
yuk yuk yuk, seasonal with the holiday market. What if we have a 911 or something that prohibits tourism. Standard 3 bedroom “rent a box” investments will always do well in a good or bad environment economically. Dont be a bunny who has to ask for a guarantee. They usually factor the guarantee cost into the purchase price anyway so you are paying for it up front without knowing it.
Your call but it wouldnt be me.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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