Hi,
I'm looking at IP around Melbourne area and was wondering if there's any downside to this sort of apartment? Particularly with the pharse [Securely leased to the "Punt Hill Group" until …..]
http://www.realestate.com.au/property-apartment-vic-melbourne-107039650
Yes, there is everything wrong with it. A quick google search for "Punt Hill Group" shows that they are in the serviced apartments game. If you search this forum for serviced apartments, you will see that such property has little or no capital growth, a very reduced market for resale, and no ability to add value. Stay well away from such a thing.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Looks / sounds like a Serviced Apartment
There are differing opinions on these and will depend on your own objectives (income versus capital growth etc):
Pro's – Strong Returns (7.2% in this case) & Body Corp Fees, maintainance etc paid by tennant
Con's – Can experience low (if any) Capital growth & some lenders don't like them as security (and/or to be low LVR >60%)Understand now. Thank you.
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