Just $98,000, but you need patience
A SURFERS Paradise holiday unit is on the market for the rock-bottom price of $98,000 – but there’s a catch.
The new owners can’t live in it and won’t make a cent for the next six years.
Glenn Shillig of Ray White Surfers Paradise is marketing the “lowest priced unit in Surfers Paradise” and said the one-bedroom unit in the Alpha Sovereign Hotel has a lease in place with the on-site managers. “These units were sold in 1997 with a 25-year lease with the on-site managers and they gave a very high return for the first three to four years,” Mr Shillig said.
“No one asked what would happen next and after that they were basically covering the outgoings.”
But he said it wasn’t all doom and gloom for the potential new owner.
“I just sold one recently that didn’t have that type of lease and it sold for $155,000,” he said.
“Whoever buys the property now will know they will definitely get an increase in sale price and rental for the unit if they hang on to it for at least six years.
“During the six years the sale price will keep increasing as the number of years reduces on that existing lease.”
Part of the lease agreement means the new owners cannot live in the property or privately rent it out.
“We’ve got to be upfront about it as we’re not trying to trick people into buying something that they can’t live in,” he said. “We’ve had a huge amount of interest and the only reason it hasn’t sold is the lease it’s under hasn’t got a net return.
“That’s why the price is low.”
The new owner is able to stay in the property for 10 days each year at a discounted rate but it is predominantly a short-stay holiday rental.
The 80sq m unit at 213/132 Ferny Ave is on the second floor and comes fully furnished with airconditioning. The complex has a pool and a restaurant.
There are four other units for sale in the Alpha Sovereign Hotel ranging in price from om $99,000 to $ $150,000.,