Hey all, Hoping I can get some advice or potential negatives about buying a holiday apartment in Surfers near tram station and Cavill Ave. Net return is about 7%. Due to the restrictions of only being able to live there 3months at a time, leases are only allowed to be 3months long. I've been told banks view it being a riskier investment and may require a higher deposit. Also that I doubt I could ever claim it as a PPOR. Anyone else that can shine some light on property like this would be greatly appreciated. Regards, Arc
Haha, but why though? Trying to learn all I can. I'll do more research tonight when I get home. Regards, Arc
Can't live there for more than 3 months. Can't claim as a PPOR Owners are a captive audience for management High rental yields (if you get them) = lower capital growth Banks don't like lending on them - that alone should tell you something Limited resale market zzzzzzzzzzzzz I'm getting tired just thinking about it.
So there would be no entry price point to yield ratio that you would purchase an apartment such as the aforementioned I imagine? Perhaps short term thinking but there is the Commonwealth games coming to GC in a years time also. Regards, Arc
You will almost certainly do very well during the Commonwealth Games. But don't let an event that may last for a few weeks cloud your thinking. Marg
Thanks Marg. Indeed it would be fleeting in the long term view. I also understand to leave emotion at the door for investing, I just see there are more that just CF to be obtained, especially at a sub 220k entry point. Will continue to do my DD. Regards, Arc
