- Scott No Mates wrote:Breammaster
What sorts of costs are there on the holiday rentals? Cleaning, letting fee, management fee, & how are these determined/rates increased?
SNM
i dont use holiday rentals cause i find th return with a long term tenant is higher. Not sure on exact costs but the return was on average $20 less per week for the entire year.
That would obviously depend on a number of factors: quality of management, fees charged, level of maintenance, length of stay, occupancy rate both in peak and off season.
Depending upon the quality & costs of management, the returns far exceed a traditional rental property.
Is that where you have yours breammaster? There's one for sale on realestate.com in that price range still. Might go and check it out. Cheers
Breamaster – thanks for the guidelines.
Have you heard anything about the Azzura Group and the deals they offer?The Biggest thing with commercial is that it is all lease based,…. Meaning the Value of the property is based on the quality of the tenant and the quality of the lease,… you can have 2 properties side by side that are exactly the same,… one leased to a dodgy curry shop on a shaky month by month lease and the other leased to a Subway Franchise on a10 year lease with built in rental adjustments and outgoings paid,
So you really have to examine the lease and talk to RE agents specilizing in commerical in that area to find out if the lease is undervalued,
amil wrote:Breamaster – thanks for the guidelines.
Have you heard anything about the Azzura Group and the deals they offer?No probs. I've heard from a developer that the azzure group are quite good. But thats only one person. I know they have a development about to go public which will be one of the biggest developments in surfers paradise. Its called Pacific Resort. They have bought a whole block next to budds beach which they plan on building 4 towers with a amusements park similar to wet and wild in the center. I was going to buy one and hold it cause settlement is not for another 3-4 years and sell it before but i have stretched my finances as it is. You can see their plans and drawings for the building at there surfers paradise retail outlet. I know that 1 bedroom apartments are going for about 520-550K off the plan with settlement in 3-4 years. I think a lot of speculative investors have bought into it with plans to sell before settlement, i am sure plenty will also hold onto them. Only a 10% deposit(deposit bond or bank guarantee is accepted) needs to be paid initially and you have 3-4 years of capital growth before dishing out anymore money. The returns could be quite good though and the body corporate would be reasonable considering the facilities in this place. I think body corporate is something around $100 a week which is about the average for high rise resort style gold coast apartments. Apartments can be rented out through onsite managment or you can get a long term tenant through your own real estate agent.
Hope that helps
Sure does help – thanks again Breammaster. Are prices for these type of spec apartments usually fixed or negotiable?
amil wrote:Sure does help – thanks again Breammaster. Are prices for these type of spec apartments usually fixed or negotiable?They are usually fixed, and because people are always interested i dont think they need to lower them. Definetly do some research into their other project though and see what other people in the forums think of the group
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