I curently work in Ireland I am an Australian,
My home is rented out in Hillarys WA.Through an agent all is fine there rented at 200 pw 150000 mortgagelast year put deposit of 10.000 and paid stamp duty on 3bed 2 bath flat in Joondalup(nearby)Purchase price 381000. to be completed sept+ 05 Expected value on completion late 400s should I sell and pay off house or try and Raise mortgage and rent out as well I doubt if rent would come near mortgage any advice appreciated.Hi Kieran,
Welcome to the community and I am sure that you will get some conflicting comments. To be of real assistance the community would need some additional information about your long term investment goals, timeframes you are working in and so. The more information you provide the better response you will get.
I just had a scan of the weekend papers and 3X2 units in Joondalup are renting for between $250 and $375 depending upon location, standard and fitout. A rental factor you may want to consider is the imminent arrival of the Edith Cown Campus – that and the Policy Academy, TAFE etc means that there is a potential student market to be tapped into. A local REA will be able to give you a better indication of expected rental returns.
Based on the information from the weekend papers you will find that your weekly cashflow will be negative – on the plus side is that the central area is now almost completely built out, commercially viable and growing and as such future capital growth is assured. However I am not sure that you can ‘bank’ on a sale in the late 400’s in 12 months time. Even though the Perth market is still reasonably durable at the moment I suspect we will not see that level of growth in 12 months time.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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