FAQ 44 Is this property a good investment?
Lets firstly define what is an INVESTMENT
It is something that delivers EITHER Income or Capital growth or BOTH. If it delivers neither then it is not an investment and then comes into the realm of speculation.
What is good or not is really about the level of investor expectation.
Only The investor can answer this question because only The investor will know Their
goals/aims and what they require the property to give them.
As an example, a cash flow of $100,000 in 5 years time is set as a long term goal .
It is understood after having a finance and strategy review that starting equity is low ( under $200k)
To address this, a decision is made to enter a JV and to provide
some of equity for a chunk deal that will be sold down at completion.
The short term aim is that the JV deal will produce EQUITY
Should this deal be entered?
The answer to this question is YES if it delivers the EQUITY that you are seeking.
Mike & Sara
Ultimate Coaches