I have had the opportunity to invest in a hotel apartment style property. The following terms applied: 10 year lease with a 6% rental return guaranteed and a rental review every second year during this term. Subsequent to this a 4 X 5 year arrangement is possible.
Having reviewed the figures, it is able to give me a positive cashflow. I’m not familiar with investing in commercial property and would appreciate any thoughts before I decide to proceed with the transaction.I’m not even sure if you actually own the apartment, just the freehold like a business. You just own the right to recieve the income from the lease, not the floors, walls etc.
Beside’s I’ve seen lots of ads for hotel apartments returning much more than a dismal 6%
Hope this helps, G7
You must be logged in to reply to this topic. If you don't have an account, you can register here.
