i have come accross a property its value is 85,000 its goverment guarented rent at $190 pweek, a 1 beder 1 bath room a car guarage…WOULD THIS BE a cash positive investment please allow for $10,000 in leagle cost also IT WOULD BE GOOD TO HERE YOUR VIEW !!! THANKS MICK
ta
Why such a high legal cost?
Is it a regular house or apartment?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
It would probably be cashflow postive, but that does not necessarily make it a good investment.
Terryw
Discover Home Loans
Parramatta
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I think I saw these IP’s also. Are they the retirement apartments in Caboulture? There may be high body corp fees and/or management fees. But I’m just a newb so could just be making excuses to not start! Check it out.
sir bob u r correct!! with the $10000 legal cost , i meant allow $10000 in legal cost, stamp duty pest and building inspections etc etc etc!!!
ta
My gut feeling is bad investment.
These cannot be highly geared and will need a lot of equity. They will slow you down.
Don’t be seduced by the high yield. These type of things need to be sold on a high yield to make them even marginally attractive.
My advice is stick to middle class housing…..
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
Hi tamtam,
It is difficult to say if it would be CF+ because you have only given the gross return. What are the other costs involved eg: strata, body corp, sinking fund etc? and what sort of loan interest rate can you get?
1x bedders tend to have other drawbacks. Do you know what the floor space is? because this can be a problem for lenders and may make it difficult to resell if you need to. You will also need to ask what type of title exists on the property.
Todd Burns
http://www.freepropertyhelp.com.autodd, what do u mean by title????
ta
Hi Tamtam,
Click on this link fir Info on titles-
http://www.echoice.com.au/servlet/HomeLoanInfo?pn=/homebuyercentre/findrighthome/typestitle.html
Todd Burns
http://www.freepropertyhelp.com.auHello tamtam…
These “units” have been questioned here recently…
I did a considerable amount of due diligence last year on these units Tam and there are tons of these units in Queensland; entire areas of Brisbane suburbs are consumed by these units AND the catch cry they use to hook people in is what sets off my alarm bells; “government subsidized rentâ€â€¦
The population is aging, yes, however savings are not, in fact we have become for the first time In 50,000 years in this country a nation of over spenders, therefore the Government needs to compensate from two angles. The government will phase out that guaranteed rent over the next ten years, that means your capacity to maintain the rental yield will be mechanically forced down and interest rates will rise up so more than likely you wont have a +CF-IP well before the ten years is up…
Over and above that, when the property becomes vacant it will not be as readily tenantable because your target demographic is limited to who you are allowed to rent to therefore the rental requirements are very restrictive…You can’t redevelop, can’t extend and can’t re-furbish. The “cant do’s†far out weigh the “can do’s†and the CG really won’t go anywhere…Basically its an expensive caravan park…
Yes we do have an aging population but that population is becoming and headed to become a very under superannuated population of retirees who will be looking for very cheap accommodation…
tamtam if your paying $190 a week today what would you expect to be paying in ten years time and if your wage was cut in half or abolished what do you think you could afford?
Lets hope bennyM gets that thesis out soon…
“ask and you shall recieve”
Sincerely, Jarrah
++CASH FLOW PROPERTY HUNTER
(your not hunting if your not hungry)[email protected]
Climbing & Consulting
Arboricultural Services
0431433288“be ye angels?”,
“nay we are but MEN!”Hi Tamtam
I think these are the units I looked at last year, I had all the info sent out and I think you actually finish up with $8.00 per week once everything has been deducted so if I were you I would continue to shop around – do your own due diligence with them first though in case they are not the same ones.
Sparky
Hi Tamtam
It is inherent in the previous replies but may not be obvious to you that “government subsidised ” is NOT the same as ” government guaranteed”- I suspect that if you have vacancies you will not receive rent- ie the government does not guarantee the rent at all like they do in say Defence Force homes.
Hope this helps
Cheers
[exhappy]evo] Hi Tamtam
I also looked into these types of properties and quickly left them alone. When you are dealing with retirement facilities the Government insists you maintain the standard of the unit and this can mean thousands of dollars in unwanted upgrades to the unit – even to things you think look ok – you dont get to have much of a say. The management fees can be a little high as well and it is the manager and not you that decides what needs to be done to the units.
It can be expensive! Also – most are under 50sq so most lenders wont lend on them and they can be vacant for long periods – no rent – no positive cash flow. I did the calculations and must say that they did look attractive first up but after applying due diligence – can say they are far too dicey – my suggestion to you is to leave them alone……..just my opinion though! good luck whatever you decide to do!!
Lee[biggrin
thankyou at all of you!! u have opened another window in my learning curve!!![biggrin]
ta
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