Hi, This is my first time so please excuse me if this has been discussed before.
I am looking at a penthouse apartment (one of 46 apartments in the complex) right in the middle of Wellington which is sub-leased to an company who treats them like service apartments for corporates. There is a gym, pool, sauna and a car park thrown in that brings in an extra $50 pw (guaranteed for 2 years)
Rent is high at $800 pw, guaranteed and fixed for 3 years. After that it is reassessed on a 2x2 basis for up to 11 years. You can however choose to sell, or rent independently as it is on an individual title. After Tax Cashflow is around $10k-14k per year depending on whether you believe their assessment of the chattels.
My question is - is this too good to be true? What are the things to watch out for? (only my second PI). For instance almost all of the other apartments are sold but only one of the four penthouses are sold which makes me suspicious. What sort of questions should I be pumping the developers agent with? Lastly, is there a need for a builders report on a multi-story complex?
Any help for this green-horn much appreciated!!!
I am looking at a penthouse apartment (one of 46 apartments in the complex) right in the middle of Wellington which is sub-leased to an company who treats them like service apartments for corporates. There is a gym, pool, sauna and a car park thrown in that brings in an extra $50 pw (guaranteed for 2 years)
Rent is high at $800 pw, guaranteed and fixed for 3 years. After that it is reassessed on a 2x2 basis for up to 11 years. You can however choose to sell, or rent independently as it is on an individual title. After Tax Cashflow is around $10k-14k per year depending on whether you believe their assessment of the chattels.
My question is - is this too good to be true? What are the things to watch out for? (only my second PI). For instance almost all of the other apartments are sold but only one of the four penthouses are sold which makes me suspicious. What sort of questions should I be pumping the developers agent with? Lastly, is there a need for a builders report on a multi-story complex?
Any help for this green-horn much appreciated!!!
Comment