Hi,
We bought 2 units in a block of 4 in Kirra beach (Qld) few years ago.
These 2 units are costing us every month couple of hundreds $.
I have fixed lately the IR of the loans, but still, due to vacancy rate, low demand, etc..it has been a bumpy road.
I'd like to hold and hopefully see some CG on theses 2 units in the next few years, but first and foremost I'd like to experience +CF in a near future.
Unless the demand grow significantly in the area and that I can increase the weekly rate, I'm wondering how to achieve +CF.
Thank you for your comments/advices.
Hi David
Welcome to the forum and I hope you enjoy your time with us.
Have you considered trying to sell the property thru Vendor Finance.
We are receiving a large number of enquiries from both investors and buyers wanting VF so definitely a healthy market back again for such a product.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
Thank you for your comments.
VF could indeed be an option.
Having not done any yet, I will need to dig out T&C before to plunge.
Cheers
Hi David,
Be sure to check out the "break cost" of your Fixed Loans with your Bank before putting the units up For Sale. There could be a nasty surprise, depending on where variable rates are sitting.
Benny
Hi David.
Have you assessed what's on offer with your local competitors and how you could improve your accommodation offering to increase the rent and occupancy ?
Suggestions .
Convert to furnished serviced apartments with external signage and rent online..
Furnished student accommodation.
Refurb and go upmarket.
Might be a simple answer to improving the bottom line.
Good luck
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Benny,
My understanding on VF monthly instatement repayments process is that the owner keep his loan until last payment done by the buyer.
As a result no need to break existing loan arrangements.
Am I correct?
Cheers
Hi Tony,
Thank you for comments.
We did some refurb (painting, carpet, kitchen & bathroom) when we bough to make sure we will get maximum return, but in between the GFC impacted the renting market and the supply is exceeding the demand, so we had to lower the weekly rates…
Regarding the current market condition and how we are comparing to similar products in the area, we are in the high percentile, so I doubt that doing another refurb will allow us to achieve the financial result expected.
As for the furnished option whether for student, holiday renting or services apartments, well i need to do some research to find out if applicable.
Thank you
Cheers
Hi David,
Quote:My understanding on VF monthly instatement repayments process is that the owner keep his loan until last payment done by the buyerThat could well be right – I am not familiar with VF loans.
Just beware that if someone is buying from you in the "normal" manner, that the break costs could be large, depending on tenure of loan (3yr Fixed, 5yr Fixed, etc)
Benny
Hi David
Yes that is correct.
The loan and Title remain in your name and the buyer pays you a series of installments which you credit to his loan account.
You could offer a potential buyer a fixed rate on the installment contract to run in parallel with your fixed loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Benny,
You're correct there is always fee's when you break a fix loan which could be quite pain-full to pay and impact badly your planned CG.
Thank you for your comments.
Cheers
Richard,
The idea of a VF on an monthly installments is to act nearly as a bank, Correct?
So what happen if major damages to the property occurs. Theoretically the buyer is responsible for the R&M/upkeep as well as rates, etc…
Also what happen if the "buyer" stop suddenly the payments or die before the end of the repayments terms and that the property has been somehow let down?
Thank you for sharing your knowledge on VF.
Cheers
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