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Buying Over 55 unit

Discussion in 'General Property Chat' started by Burramys, 14th Aug, 2016.

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  1. Burramys

    Burramys Well-Known Member

    Joined:
    28th Jun, 2015
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    Location:
    Melbourne
    A property has come to attention with an unusual condition. The block has a dozen units, all on one level, one and two BRs. The land looks to be 90-120 sm each, plus car units. It's well presented with a lovely garden, quiet street, close to shops. The place I'm looking at has a big under cover pergola and a small shed. The kitchen is tiny and will need extra cupboards, say $2000 or so. If I say 90 day terms and access for measuring, a cabinet maker can do the job in a few days after settlement.

    Data is sketchy. The last rents in this block were January 2013 $210/week and October 2014 $220/week. I was quoted $280/week by the REA but I think that this is too high, with $260/week more ballparkish. The last sale of a like unit in this block was 2005, $155,000. Long-term CG seems reasonable. All units have low turnover of rent and sale. Asking is $275,000 and an offer was made for $240,000. Two units were OFI yesterday, and we were the only people looking.

    One reason may be that the title has a clause that only people over 55 years-of-age can buy or rent. I've not seen this before. This greatly limits the rental market. OTOH, older people tend not to have wild parties, trash the place or do a runner, which is hard on a mobility scooter.

    I'm not sure if the unit is acceptable given the over-55 condition. Comments would be valued. TIA.
     

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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    In NSW this is a SEPP5 restriction. We have a block of 3 on a standard R2 residential block next door to us. 2 stories &subterranean parking. Usually owner occupied.
     
  3. hash_investor

    hash_investor Well-Known Member

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    11th Oct, 2015
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    Location:
    Sydney / Canberra
    I have seen this quite often. Every time you search for low price high yield rentals stuff like this comes up.

    I have not been able to convince myself that I will be able to sell this quickly when I wanted. And rental growth is limited as well. On top of that it is always strata development which reduces your potential further. I would buy a single title dual occ instead of this if I was after yields.
     
  4. MrFox

    MrFox Well-Known Member

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    Melbourne
    This is quite common. It is basically a retirement village.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
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    @MrFox - not quite. These developments don't have to provide common lounges, dining rooms, central laundry facilities, onsite RN/Staff etc. They must be located within x metres of a 6 day covered bus stop/station, proximity to doctors/chemist, pokies/bowlo/RSL, major highway/high bridge/cliff, include at least one accessible unit, can be on a standard residential/low density block.