Hi all, A mate of mine is looking at investing an a Hilton apartment tower. He said the listing states there council rates, and strata costs etc as normal, then states that Hilton offers a 'Holiday Pool Return of between 27k and 30k PA'. Anyone know what this is? The way I've interpreted it is that perhaps you can rent access to the pools? But $500/wk seems steep when the beach is 50 metres away. The yield will be 3.6% on normal costing, and double that if I've interpreted the pool rental correctly.. Can anyone shed some light?
I have a friend that has a unit on the GC and she has hers in the holiday pool of units. It means (as far as I understand it) that the manager of the complex gives her a set amount per year. And then he gets the unit to manage as a holiday rental. If he gets more money for it then he gives out - bonus for him. If he gets less - too bad for him. She gets the set amount regardless.
As above would be my interpretation We had an apartment is a complex - choice was to manage ourselves or hand it over the the complex management (into a pool of apartments) We didn't (as we did not agree with the % splits, something to check if theirs will rent above the pool average). Typically you will also need to purchase a package of linen/kitchen stuff etc so all the pooled apartments are the same (and a lower cost to maintain/clean etc), flip side is you get there management, advertising etc It's a math call (also check owner options, important if you want to use it) cheers greg
Ahh haha makes so much sense now. I kept picturing the swimming pool. Thanks guys! Ill let him know. Works out to be a 2.6% yield after expenses then. Not great.
Downside is that if you've got the best apartment/highest demand, it gets used the most but you have to maintain it more often for no additional return. Conversely, if yours is worst unit it gets the least use but the best return.
