All Topics / Help Needed! / Lifetime Leases for Retirement Properties?

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  • Profile photo of mikenickomikenicko
    Member
    @mikenicko
    Join Date: 2007
    Post Count: 3
    July 8, 2010 - 2:53 am

    Hi all,

    Just wondering if anyone is across the issue of Lifetime Leases on retirement (over 55s) properties, particularly in Queensland.

    I am looking at some retirement villas that are for sale and have positive cashflow. My mortgage broker says that having a lifetime lease on them may make it difficult to loan money for purchase.

    Any comments or advice is much appreciated.

    Regards,

    Mike

    Profile photo of philspropertydealsphilspropertydeals
    Member
    @philspropertydeals
    Join Date: 2010
    Post Count: 5
    October 4, 2010 - 8:03 am

    Just be careful as most villas you are only paying for the building and leasing the land the building is on. You should discuss this with the agent as this may affect your cashflow for the property.

    As a rule of thumb, I would stay clear of them as investments unless it was an amazing deal.

    Hope this helps,

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 4, 2010 - 10:08 pm

    Big issues with loans, but also with tax as well. I would steer clear.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    October 5, 2010 - 10:12 am

    also watch that capital gains aren’t split between management & yourself.

Viewing 4 posts - 1 through 4 (of 4 total)

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