Anyone used a Bungalow for positive cashflow?
I found a Bungalow in the paper today. Boy I wish I had a bit of land next to a house, suitable to put a little fully self contained Bungalow down there or out the back.
What are other peoples thoughts on buying a Bungalow? Anyone done it befor anyone doing it?
This is +CF to the max. What I see by running this through my calculator, is that it would be about 49% cash on cash renturn, and $75 odd dollars Positive Cashflow per week, you would have no loan repayments as I think you would buy it straight out at 8 grand cash, actaully I would give 9 or 10 grand just to make sure I got it. Am I missing something? There would not be any stamp duty would there?
Rental Details:
Rent = 120 //rented before for this amount in this area, as disclosed in the paper!
Occupancy rate ‘6 Weeks’ = 88.46 PercentClosing costs:
Deposit 100 Percent = $8000.00
Legal fees = $0
Stamp duty = $.0
Mortgage app fees = $0
Mortgage insurance = $0
Valuation fees = $0
Other borrowing costs = $0
Clean up costs = $0
Inspection costs = $0
Other costs = $0
Total closing costs = $8000.00Mortgage details:
Loan Principle and Interest = $0.00
Interest rate = 7.5 Percent
Term = 25 Years
Weekly mortgage repayments = $0.00
Total repayments for life of loan = $0.00Annual costs:
Management fees 8 Percent = $441.58
Letting and advertising = $0
Body corp fees = $0
Rates = $800
Utility rates and fees = $0
Insurance = $350
Miscalanious costs = $0
Land tax = $0
Maintenance 0 Percent = $0.00
Other ownership costs = $0
Total annual costs = $1591.58Summary:
Total annual rent = $5519.80
Total annual mortgage = $0.00
Total annual costs = $1591.58
Total annual cashflow = $3928.22
Total funded costs = $8000.00
Risk free return = $320.00 Bank interest rate of 4 Percent.
Annual Cash On Cash Return = 49.10 Percent
Cashflow Positive Weekly = $75.54**********
Interested in Joint Venture Reno Projectswo
i think Jaffasoft is onto something herecarn’t you image it…….bungalows everywhere
Toorak, Kirrabilli, Subiaco, etc
what a great idea……..it work in the last war………
Jaffasoft, you’ve hit on something here
but bugger the $75 a week
lets get into building bungalows….if this ideas catches on, we can buy an island in qld
and put our left over bungalows on itwell done
hb
Boy I wish I had a bit of landHi,
This may be the weak link in the plan ??
I’ve always felt the dirt is the big thing in this game, the thing sitting on top is quite irrelevant in the long term.
Na Na Na Dazzling
what are you sniffing over there at West
you’re getting all spiritual on us
land??????look
WOOLLOOMOOLOO $2,500,000 apartment 2 bedroom
NO LANDST KILDA ROAD MELBOURNE $4,000,000 apartment 3 bedroom
NO LANDSURFERS PARADISE $4,840,000 apartment 3 bedrooms
NO LANDwhen your paying those sort of prices , i wouldn’t have thought the thing your sitting on was irrelevant
hb
when your paying those sort of prices , i wouldn’t have thoughtG’day hb,
I’m assuming those examples you’ve listed are reasonably new and not 60 year old dives. I did say in the long term.
It would be fascinating to take the same amount of money you have quoted and purchased a nice waterfront vacant block of land.
Wind the clock forward 60 years.
Now check the value of the apartments (no matter how many bedrooms) vs the value of the block of land. My money would be on the dirt and I bet the market would think those apartments were indeed irrelevant, and ready for the swinging ball.
Good luck with your strategy.
hi dazz
60 years from nowi’ll be 155
are you serious
postage size blocks of land…that’s all we need.
straight up….just like the jensenshb
what exactly is a bungalow, what is your description. A Hut? like in the Maldives?
Sampson ,
Well going by the add and the photograph’s I have seen and also I have seen the building itself. Not inside but visibly from 20 metres, because I know where it is, where the guys selling it from.So it’s just a transportable rectangular building 6 by 3 meters, with shower bay, kitchenette, sink, hot water service, all electric with power points and safety switch, guttering, flat roof. Doesn’t say it has got a toilet.
They were used for the 2000 Olympics.
Jaffasoft
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Interested in Joint Venture Reno Projectshttp://www.amitybungalows.com.au/forsale1.htm
http://www.beechworth.com/barnardst/
Couldn’t find much on Bungalows?
PS- Granny Flats are out; they are now called Self Contained Units I’m told by my sister who wouldn’t think of renting a “GrannY” flat
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by Jaffasoft:So it’s just a transportable rectangular building 6 by 3 meters, with shower bay, kitchenette, sink, hot water service, all electric with power points and safety switch, guttering, flat roof. Doesn’t say it has got a toilet.
Did I miss something? What’s the difference between this and a caravan park cabin? Are caravan parks giving these kind of returns?
Originally posted by hb:look
WOOLLOOMOOLOO $2,500,000 apartment 2 bedroom
NO LANDST KILDA ROAD MELBOURNE $4,000,000 apartment 3 bedroom
NO LANDSURFERS PARADISE $4,840,000 apartment 3 bedrooms
NO LANDwhen your paying those sort of prices , i wouldn’t have thought the thing your sitting on was irrelevant
I think you are ignoring one of the basic rules in property investment – “location, location, location”. These examples are fine as long as the apartment, bungalow, unit, studio, flat, or whatever you want to call it is located in the right place
Cheers
PyramidI see, so if it’s not called a Granny Flat and it’s called a fully self Contained Unit it’s alright [smiling], Redwing.
My mum used to have one that each of her sons spent a bit of time each in at some stage or another and we called it, ‘The Love Shack’.
Out Hut, Granny Flat, Hut, whatever you like to call it, it’s more or less a little unit that may be only small enough to contain a bed small cupboard TV, small fridge etc. Some are pretty flash and made of brick with one or two bedrooms, toilet etc. So they vary but usaully are out the back or down the side of the house or somewhere just away from the main house.
I just called it a Bungalow because that’s what was used in the add and says it’s returning 120 per week.
Caravan park units that I have seen are about $50 a night, they are much better then this thing. Jaco make em up to sell to caravan parks to look like almost a small house with small Veranda and everything, I quiet like them. I haven’t gone into any details about running a caravan park. Though I have researched the price of the Jaco cabins and they vary from anything from 20k to 30k ‘Fully Self Contained’ transportable units.
This is smaller then them, I can’t see how he has got $120 per week before, I know the area here and I have gone through every RE Agency and the cheapest one bedroom (Normal) unit goes for $90 -$110. But even getting $90 per week for this in the back yard would still be pretty good. Provided you had a suitable area for it, so that the person residing there had privacy and was able to come and go through a driveway or something.
The extra 40 dollars in your pocket wouldn’t be bad.
Jaffasoft
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Interested in Joint Venture Reno ProjectsI drove past this, this morning and it’s sold.
Someone must have snapped it up over the weekend.
That took four days to sell.
I assume it is sold? The sign has been taken down.
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Interested in Joint Venture Reno Projects
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