在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
Anyone have any experience with caravan parks as an investment, both in increase in value and income streams ??
Not sure but finance is a bit difficult to obtain because it is considered a 'specialised security'.
Why is it considered specialised ??
It is freehold land......and a business.
Beware land tax if it is in any half decent location.
SamSiam said: ↑
Why is it considered specialised ??Same thing with hotels and motels. They are freehold land / building and business wrapped together. But they are considered specialised because of their zoning and permitted use. Plus there are limited buyers for these type of assets so lenders are wary of lending against them as the resale market isn't so hot.
It is freehold land......and a business.Click to expand...
Aaron_C said: ↑
Same thing with hotels and motels. They are freehold land / building and business wrapped together. But they are considered specialised because of their zoning and permitted use. Plus there are limited buyers for these type of assets so lenders are wary of lending against them as the resale market isn't so hot.Click to expand...Watched a TV show last night.
The owners borrowed from West Bank (?)
When their LVR dropped below the contracted %, they were required to make payment on their mortgage until it was brought into line again.
They were never permitted to view the valuation from the bank.
They and many others on the show lost their businesses.
it was an interesting show. The receiver had some interesting comments about property developers. He obviously wasnt a fan...
Loan contracts can be called in. They arent usually called in while the mortgagor is making the payments, but there are numerous conditions that give the lender that right. On the flip side, mortgagors can refinance, any time they like. Obviously they are a little stuck if their circumstances, or the securities have changed since the initial loan application.
The story didnt mention those businesses who moved their lending to another bank after being tapped on the shoulder, obviously not nearly as newsworthy.
Friends own a caravan park. Good cash flow business but you need to either manage it yourself or keep a close eye on management as that will make or break your business.