I’m currently shopping for a unit in my area. I originally had it planned on buying a house, but to not overstretch myself, i’m going to buy something a little cheaper. So a lot of my reasearch was done on houses… not so much units.
The one i am looking at is for over 55’s, independent living complex. It says that the rent goes up with pension increases. And comes with a new 12 month tenant.
So, are there any things in particular i should look out for when buying a unit, i checked some other posts out, and basically checking out the body corp. certificate is important. Is it generally pretty easy to deal with, look after etc with the body corp. Anyone have bad experiences with it all?
I was always considering getting a Property Manager when i did purchase an I.P. But would this really be necessary just buying a unit for the elderly?
Any help in appreciated, especially any more important info on body corp. etc…
Thanks.Check it out thoroughly before you buy.
Is it Cash Flow Positive?
What is the net income and what are all the expenses?
Are you allowed to live there yourself if you want?
What is your long/short term plan?
What investment structure are you going to use?Regards
Demkel
Hi,
I believe the over 55’s units are good low cost entry into investing or a great general cash + investment, which supports debt servicing as ones portfolio grows.
One key item is the Manager – what is their tenant turnover like – if the tenants are not happy they will move on like any property. See what seniors competition is within a 5 or 10 km radius. These units are for low/mid income/pensioners so high cost/middle class plus communities are not really competition. Must also have within 2 km or so a doctor, hairdresser, supermarket, etc. A milk bar, newsagent and bustrain within very easy walking distance.
Your capital gain will be moderate and should be just ahead of inflation.
The cash flow must be positive, all body corp & agreement costs clear, etc.
The Management agreement must have a termination clause so can get rid of Mgr and also same for bidy corp Mgr if they don’t perform. They usually have 10 – 20 yr license/management agreements or ownership.
I can help with the numbers if you wish. I am currently involved in the development of a similar community, have bought same also.
e mail me on [email protected] if you want specific info. I don’t get on forum very often so may not be able to contribute in near future.
Regards,Steven B
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