I'd appreciate some input from the business brains here on a problem that's vexing me... I've been thinking about buying a dual-key (1 bed+studio) holiday apartment on the Sunshine Coast. Returns are just slightly positive on costs. But banks are very dubious about lending on dual-key places (some refuse outright, some will only do 50% etc etc). Financing the purchase isn't my concern BUT I think this makes the place a very illiquid asset? Future purchasers would have to come from cash or investor (willing to give another property as security) pool which limits the number of potential purchasers? Also means no negative gearing benefit available? Anyone think of any other potential problems? I'm still interested in the idea because it suits my personal lifestyle to be able to have somewhere in Australia I can spend periods of time at and then just get on the plane and leave again without having to pack up a large apartment. Sensible suggestions appreciated!
don't touch it Karen - these types of units always underperform the market and are hard to resell. Buy a conventional one or two bed unit in an area with consistent rental demand, you may not get the short term return, but will make up for it with capital gain in the long run.
Thanks Ian. I already have a large-ish conventional unit close to the beach. Residential letting is a PITA. This is more a lifestyle idea (lock and leave to holiday managers) BUT I'm trying to understand if there are any OTHER problems apart from liquidity?
Cause I think that you are a bull duster. Just let us know who you had the bet with and for how much.
Happy that you agree. Not sure why you had to make up all the things about winning bets with dream people and that you won against the post leader. WITFWWY
I think you might be a BFITH I don't make things up. My life is awesome enough without needing to. OLIO...I crack me up.
Am sure your life is awesome enough [in your little mind] I think you make things up as far as bets go. Let us have the facts - you have had enough time to gather your fans together for enough support to make your case.
