Hi all. ive been looking around and came across this option in Perth. these returns are nothing spectacular but in my case im looking for guarenteed income. has anyone out there bought a similar kind of PI. if so can anyone offer any comments both positive and negative.
heres the link, i hope it works
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2004470623
cheers PaulHi Paul,
These units are pretty close to central Perth and are located just below Kings Park and in close proximity to the recently opened Perth Convention Centre. No doubt the developer is trying to cash in on the Convention Centre.The units themselves are below 50sqm and as such 80% lending may be difficult (impossible ?) to secure. Given the units are classified as short stay higher than normal management fees may apply and associated costs may be proportionally higher.
Medina is also the name of another Perth suburb some distances from this development and as such if you are looking for statistical comparisons this may confuse the issue.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I take it they are serviced apartements? If so check out who is managing them as this could affect your return. It said “Medina or Leasee”. So if Medina aren’t managing them, then who is the leasee and what are their management skills like? Or even if it is Medina, what are their management skills like, what other properties have they managed, have they been able to meet the yield on their other properties that they advertised prior to managing them? I believe the average rental rate for serviced apartments is around 65%, so perhaps ask them what their yield is based on. If they say an 80% rental rate, then they may be being unrealisistc and the yield then won’t stack up to what they have advertised. If they have based it on this type of rental rate then they are at least being realistic.
These are the sorts of questions I’d be asking. If you’re happy with the answers then go ahead, if you’re not happy with the answers then don’t proceed.
Good Luck
PKYeah for the same $235k I could get you a 3 bed house with a 12 month rental guarantee of $150/wk and a 2 bedroom unit in a complex of three with an expected rent of $110/wk for $185k and thats without trying.
Make sure that the investment you want is the real one you need. Thats all im saying as I initially misread your “Medina” as being the suburb in Perth south. I have a 3 bedroom unit there which I bought for $70k august 2002 now worth $120k and getting $145/week rent.
The property you looked at sends warning bells through my head the same as the previous responders as the less tha 50sqm footprint also means that you are guaranteed to hit LMI as well as only a 65% lend. Every time you have holiday or short term letting situations you have an incredible escalation of costs due to wear and tear. As it is fully furnished expect with the pool and other services to be super stung for the body corp fees and ongoing special levvies for things like lift repairs and security problems in carparks etc. You may find the ‘secure and dependable’ investment you seek becomes a bad cashcow mooing all the way to the bottom of your wallet very quickly.
Please just treat this as another investor giving an opinion, as I am sure you are researching other alternatives as well as this property.
The main thing is to hold off until all the relevant data can be deliberated. All deals with glossy adds make me question why they are trying the hard sell. Most deals you think are too good to be true, usually are.
Good Luck
DDDon’t sweat the small stuff,and it’s all small stuff!!
hey thanks for the replys
im looking to buy something in about 3 or 4 months time so im looking at all options. the reason this place first took my attention was that im going over to perth in a couple of weeks so im going to have a look around while im there. i dont want to buy in NSW because of the 2.5% tax. does anyone know if the stamp duty is any different in perth or any changes happening soon. i ask this as i read a comment a real estate agent had said in one of his adds which got me confused.
cheers paulHi Pgrim,
Without knowing what the REA ad said it is difficult to comment but I am assuming the commentary was about the changes to stamp duty legislations & levies that into place on July 1 of this year.
For a definitive answer – check out
http://www.dtf.wa.gov.au/cms/osr_content.asp?ID=178for some official information.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
thanks for the link Derek, here is the quote.
“Take advantage of the Multi-Million dollar Northbridge Renewal Project with this value-plus, top floor apartment in the award-winning St James Estate. Plus, with stamp duty about to plummet this is your chance to get into one of Perth#8217;s fastest growing areas”
cheers
paulOriginally posted by pgrim:“Take advantage of the Multi-Million dollar Northbridge Renewal Project with this value-plus, top floor apartment in the award-winning St James Estate. Plus, with stamp duty about to plummet this is your chance to get into one of Perth#8217;s fastest growing areas”
Hi Paul,
Hmmmmmmmm – Northbridge renewal project and Medina Apartments are on opposite sides of the city centre and as for stamp duty rates ‘plummeting’ – I shave more off my stubble each morning than was taken off stamp duty rates.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
sorry didnt mean to confuse. this add wasnt for the medina but as i was talking about perth i thought i would ask the question about the quote on stamp duty.
cheersHi Paul,
Not a problem – some ads do stretch the truth a little.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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