autumnbronze:

Wow Chen!!!!


You certainly know your math

I am still struggling to work out the math at the one I am looking at. It doesn't help that math is not my forte and I have always had a phobia when it comes down numbers :scared:

Edit: of course now I realize you must be an old hand at this ....

autumnbronze:

3boys,


:thankyou: once again for sharing.

This is very insightful to me, a novice, who has just started looking into property investment.

Will take note of your tips

verykiasu2010:

as to Chen's 500,000 investment, it could be used to invest in US and get the green cards for the whole family. after 5 years, the P+I will be returned, with full citizenship granted at 24 months for the whole family and enjoy local students status for uni fees :offtopic:

verykiasu2010:

(1) if you hold it under company name, you can easily sell it off, if the returns remain attractive ..... but then you won't want to, or you could have earned enough from price appreciation .......

verykiasu2010:

(2) why would u want a guarantee to perpetuity ? don't want any upside ? okay being optimistic here ..... but anyway it says guaranteed for first 5 years ...... reason being most hotel management contract last for 5 years, and usually a good hotel chain will renew / renovate / refresh every five years ..... and who knows it may change into a 5 star hotel when the next 5 years come ? or become apartment if no hotel chain going to take it .....then rent to uni students lor .... anyway it is just 50,000 pounds if no borrowing .....just one COE will kao-tim

Chenonceau:

VKS_2010


RE: REITS... http://www.martinlee.sg/are-singapore-reits-a-good-investment/

Do you have the answers to the 2 questions though?

(1) How difficult really is exit? More difficult than selling property?

(2) The $12,000 a month is guaranteed till perpetuity for as long as I own that room? Or will there be future rights issues?

Do you know? I really dunno much about this instrument. It sounds quite exotic to me because I've never heard of it till now... but then, I am pretty much a scaredy cat investor... not very adventurous. Nonetheless, I am happy to explore and think and poke around at it.

verykiasu2010:

autumnbronze:

Vk2010,

The property link I posted earlier has a similar offer.

Developers are refurbishing an old mill and converting that into studio
apartments condo style with facilities like pool etc ...

It is freehold, located in a residential area, based on google map. About 2km from Leceister Uni.

That's what we are thinking too ie to finance kids' studies/expenses in about 20 years time.

Can you please share your findings from other postings. Like Chen, I am learning tooo :please:

not the same one

the promotional literature i saw said this is hotel in central london, actually is one of my favorite chain and i know how busy they are, and I presumed 2 nites of occupancy to provide 300 rent per month on leveraged basis seems conservative enough, and i presumed the occupancy would be higher than 2 nites and such additional nites were actually their pure profit because actual repair and maintenance and renewal cost would not be that many nites on top of the two nites equivalent paid to me.....

autumnbronze:

Vk2010,

The property link I posted earlier has a similar offer.

Developers are refurbishing an old mill and converting that into studio
apartments condo style with facilities like pool etc ...

It is freehold, located in a residential area, based on google map. About 2km from Leceister Uni.

That's what we are thinking too ie to finance kids' studies/expenses in about 20 years time.

Can you please share your findings from other postings. Like Chen, I am learning tooo :please:

verykiasu2010:

don suan lar ....

Chenonceau:

verykiasu2010:

[quote=\"Fat Mama\"]Hi verykiasu2010


Is this property freefold?
Regardless of occupancy rate, we still get our $600/mth nett?
Any other hidden costs?
Tks

freehold

600/month is presumed calculations based on promotional literature I saw.

there should be other costs but presumed net off already

I did not ask for further details yet as I am just posting for responses from more well informed and wiser people

this kind of overseas investment must do lots of due diligence lar

other people's success story is also built on thorough due diligence

verykiasu2010:

3Boys:

[quote=\"verykiasu2010\"]Investment Highlights:

\tHotel rooms from just £49,950
\tNon status finance available at 50% of the purchase price
\tExcellent average yields of 14.52%
\tImmediate returns as completed operational hotel
\tHotel will operate under one of the Brands of the second largest hotel Company in Europe
\tIncome will be paid on a six monthly basis in arrears

say, cost = 50,000 and yield at 14.52% = 7250 per year, or approx 600 per month; too good to be true ?

what is the occupancy rate ?

maintenance cost charged to the room ?

management fees ?

any one has more info on this type of investment ? not a time share hor.....

This kind of 'hotel room' ownership apparently quite popular in UK and US. Fairly legit, decent yields. Downside? I don't see an exit strategy. These types of assets got no market, not easily tradeable. Try this company --> http://www.ducalian.com. I spoke with them before, lack of exit dampened all interest for me.