I’ve recently came in contact with a retirement unit that would generate positive cashflow. I have been informed that banks do not lend to investments for retirement villages/units.
Has anyone heard of this. If so do you know why. Lastly is it a good idea to invest in such properties?thank you and happy new year.
Mulanyou need too check terms and conditions on these.
I didn’t think you oculd buy one to rent. More to it, but to occupy. Don’t they have too provide a carer and other care for the residents?
Not my field and one i have never entered, so would be curious to find out more
Byronent
Adelaide SAHI Mulan,
Recommend you do a search of the forum as the ‘retirement village’ question has come up a few times before.
The search facility is available under the ‘forum boards’ button top left side of the screen.
In a nutshell many lenders will not go to 80% lends – most around 70%. Hence they are a niche market and their growth prospects doubtful.
Derek
[email protected]Property Investment Support Available.
I haven’t looked into the financing of these, but beleive major lenders won’t touch them because they are specialised security. They would be very hard to sell, so if anything went wrong, the bank may have trouble getting back their money. There may also be probelms with the bank forcing out old residents if they have to forclose, ie public relations probelms.
I personally would not invest in a retirement village. Especially when there are so many other good ‘standard’ property investments out there.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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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