Investment opportunity in SA Mantra resort

Discussion in 'Property Analysis' started by New2prop, 11th Jul, 2017.

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  1. New2prop

    New2prop Well-Known Member

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  2. Phase2

    Phase2 Well-Known Member

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    I'd avoid any managed holiday-let like the plague.. unless your NET cash returns are really high. Cap growth will be very small.. and your rental returns will get eaten by fees and levys.
     
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  3. Marg4000

    Marg4000 Well-Known Member

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    Resale would be difficult with limited buyers.

    Sure, the saying is that you do not plan on ever selling, but life has the habit of tossing us curve balls and you don't know that you won't need to sell, possibly in a hurry.
    Marg
     
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  4. Tonibell

    Tonibell Well-Known Member

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    Need to do your research - what does a house go for in Wallaroo and would you want to be one ?

    Make sure you are comfortable with the value of the underlying asset - is Wallaroo on your research list (if it was not a heavily marketed Mantra contract) ?

    The contract with Mantra is unlikely to be so attractive that it will offset what you might overpay up front.

    Generally you pay a highly inflated upfront costs with these type of offers.
    If it was a great opportunity I'm, sure Mantra have many other sources of funds.
     
    Last edited: 11th Jul, 2017
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  5. Ed Barton

    Ed Barton Well-Known Member

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    Mantra are hopeless hotel managers. Selling real estate? maybe a bit better.
     
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  6. Gavin Ng

    Gavin Ng Well-Known Member

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    usually have very high fees involved and very restrictive bylaws, furniture, appliances all need to be bought through them. Make sure you read the fine print and as others have said, very minimal capital growth.
     
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  7. Tom Simpson

    Tom Simpson Well-Known Member

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    I can't recall the details but I tried to get finance for a client mid last year and none of the usual banks wanted to touch it above maybe 60% (I struggle to recall).

    Don't let your motives confuse you. Are you being sold the dream of using it yourself in between tenants? Stay focused on what you're trying to achieve, don't let your holiday ambitions get rolled into your investing ambitions. If that happens more than likely they'll both suffer.
     
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  8. New2prop

    New2prop Well-Known Member

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    Thanks guys... this is the first deal in my inbox and got me all curious. As always the wide PC gang to the rescue
     
  9. D.T.

    D.T. Specialist Property Manager Business Member

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    I'd avoid it just because they are in control of it. Buy a normal house or unit.
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Finance is tough, because re-sales are tough, because finance is tough :)

    I do have a few of these types of props in client portfolios though

    they can make a decent cash cow inside an SMSF or for someone that has large cash holdings, and can work of limited LVRs........

    ta

    rlf
     
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