WHERE IS ALL THE MONEY GOING????
Do you own a managed investment unit but receive ever diminishing returns?
City Sales is working on 6 different buildings at present where owners are becoming very concerned at the levels of rent they are receiving.
We sold in September two apartments which showed a Nett income for the past year of $2,846.37 (no, not for a month, for the year) and $4,748.88. They sold for $46,000 and $50,000 – a serious loss for the owner.
But the curious factor in this was when marketing the suites it was extremely difficult to actually show the units because they were permanently occupied.
We are also working with investors on student units where the “manager” is reneging on guaranteed returns and incomes have dropped by half.
Another complex has been paying investors out at an average $100/week for two bedroom (four single beds) student accommodation but the units appear to be highly occupied at the advertised room rate of $25/night ($350/week – although we suspect this is $25/bed/night which could generate $700/week fully let).
As City Sales' vacancy rate is almost nil we can't quite understand what is going on.
We have studied carefully management lease agreements in all cases and some complexes require only 28 day's notice to terminate the arrangement although a once only penalty fee (under $1,000) applies and there is a GST complication.
Given the scenario it is hugely beneficial for owners to let us organise the termination and for City Sales to manage the suites.
Are you a frustrated investor unsure of what to do next?
It's easy – we already understand the solutions – call us.
Go on – just call us.
MARTIN
