I have found a purpose built project which appears very good and provides me with $88pw positive cashflow. I’m just not sure about this type of investment. Can anyone help?
I have a student rental property and am quite happy with it so far.
As to how to answer your question – I don’t know where to start.
Please post some specific questions or email them to me and I will see what I can do.
Feel free to give me a call if you want to have a chat.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
How much less growth should I expect than a standard 3 BR unit in the same area that does say 12% in a particular period?
I wouldn’t have any idea. Mine is a house so it will be equivalent to the market.
I imagine a purpose built unit could be residential flats in which it would be similar to the mainstream residential market or a full on commercial motel type setup in which case it will be tied to return and the market in the same manner as commercial property.
Hard to say.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mikefrost,
Not sure about the project you are referring to so cannot talk specifically, however, I had looked at student accommodation in Melbourne. Next to Swinbourne University in Hawthorn.
The size of each apartment is between 25-40 sqm. Banks are not keen on giving loans even to 80% LVR. Therefore you will have to put in more as a deposit to qualify for finance. The greater the deposit you need to fund, the less you have to invest elsewhere.
Land component is very small for these apartemnts, and I think, will not have a substantial capital growth potential compared with say a 1 br apartment of more normal size. (Of course to be honest, I am biased towards capital growth over cashflow).
The ‘market’ for your rentals are students, and whilst with greater numbers of international students, will probably always ensure they are filled, we are not necessarily talking about renters with substantial disposable income (whether international or local) and am suspect about the potential for growth in rents over time.
Similarly, I think the market for potential buyers is also small, so if you needed to re-sell, it may take some time.
I think, I have probably painted a negative picture from my perspective, but would be interested to see what other people think.
James
Hi Mike,
As George and Simon have said we really need some more information to give you a reasonable answer. There are all sorts of issues associated with student accommodation some of them negative and many of them positive. I suggest you provide a little more information and you’ll get better answers.
How big is the property? How many bedrooms? Where is it? What rent are you receiving? Ho wmuch did you pay? Furnished/unfurnished? o/seas or local studnets? etc
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Its on hold I havent bought yet.
3BR apartment in a complex of 64 in Labrador on the Gold Coast, near griffith Uni. Complex has a pool, gym and rec area.Price is $245k plu $20k furniture pack. Onsite manager charges 7.5%, BC is $1820, Rates $1200 and rent min $405. Every apartment is the same
Targeted at overseas students.Uni holds the rent in trust.
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