Does anyone have experience or any advice to give about holiday units. In Darwin we often have holiday apartments or units advertised. For instance there is one at the moment that the real estate advert says is currently getting 7.6%, and the only cost is $100 a month maintenance, (I have emailed the agent to check on Body Corp costs). The total price is $98K.
This seems to be like one of the better ones that I have seen but there is actually quite a few around Darwin like this.
ThanksDianne Mitchell
Hi Dianne,
Be very careful with industry specific investments. Usually management fees, body corporate etc. will eat any decent cashflows generated. Besides 7.5% doesn’t sound that good either for this type of investment and sometimes financing them can be prohibitive.
Having said that though, good deals on these properties do exist and there have been people who have done all right out of them. It’s just a matter of weeding the good ones out off all the other riff-raff on the market.
Also, if you do decide to go ahead there always seems to be plenty of these on the market. So there is no reason why you cant be hard nosed in your bargaining for them. The one for $98k might be able to be bought for $80k or less. If not there are probably many more out there at around $100k that could be. You’ve nothing to lose and everything to gain, plus the experience will be invaluable.
Good Luck…G7
Watch the cleaning/laundry costs on holiday apartments. They can be a killer.
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Dianne
Dianne Mitchell
Be careful they love to over charge for out of town investors
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