Forum Replies Created
NN – rental guarantee is via leaseback from the agent who manages the apartments. The $440 is simply the weekly rent, I assume it is NETT. It is in Sydney CBD, not far from Townhall Station.
Strata $3600 per year
Council $600 per year
Water $560 per yearHi Terry – why would financing be harder because the apartment is in the city?
Additionally, what is the issue with "serviced apartments"? I have heard people saying this in the past, but I haven't yet heard a good reason for it.
Hi petrona – thanks for the info.
Regarding the reduced capital appreciation potential, do you know roughly how much percentage lower than regular house appreciation the growth rate would be?
Regards,
AjayThanks – where can you get price history? I have heard of this in the past but I have never been able to find it via internet search.
Any suggestions?
Thanks Richard. So basically, I assume that the bank believes that the number of square metres will impact how easy it is to resell the property?
Cheers
Thanks Courtney – when you mention 7.7% property fees, do you mean this percentage in relation to the weekly rent? e.g. if weekly rent is $400, property fee is 7.7% of this, which is roughly $30.80 p/w?
Cheers
AjayGood point – thanks Kevin.
Terryw wrote:The problem with units in general is the high strata fees. CBD units pose additional problems in restrictions on finance. This can limit the number of potential buyers and hurt your borrowing capacity if you have low equity.Hi Terry – any particular reason banks would apply restrictions in regards to financing a load specifically for CBD units?
Best regards,
AjayHi all – another quick thing.
My previous property purchase was DHA – I like the fact that it is a totally "hands off" investment although the management fees are high.
By investing in a "regular" (non-DHA) property, is there some way I can make the investment still "hands off" by engaging someone to look after ongoing maintenance, repairs, locking in tenants etc? I want to avoid involvement in checking on the property or being involved in servicing etc. Since I invested in my previous DHA property in 2005, the most I have done is simply driven past the property a few times.
Look forward to hearing you comments on this non-DHA situation.
Regards,
AjayHi guys,
I recently purchased a DHA property in Sydney for $475,000 in the suburb of Castle Hill..in around June or so.
To me, it seems like a fairly sensible investment if you are happy to wait 3-4 years..and currently the prices have almost bottomed out IMO so I think it could be a good time to buy.
The main attraction is that it is hassle-free and tenants are guaranteed…also the rents are guaranteed at a minimum level..so the rent can only go up..
So yeah, I think if you find a well-priced property, go for it!
Thank you all for your comments, particularly Michael – they were most helpful.
Anyway, I recently purchased a DHA property in Castle Hill for $475k…4 bedroom townhouse..approx 2 yrs old..seemed fairly well priced…i own 50% of the property..the other 50% owned by another family member..
Hoping to generate some return by 2010 or so…which is about 5 yrs away….sit and wait i guess..
thank you all again
by the way, it comes to nowhere near $900 per fortnight.. it is more around the $200 mark..per fortnight..
That website should provide the details of rent, etc. that people were quoting before..
I am paying approx $90 from my pocket per week for this property. If the house price doesn’t go up within a few years time, I am happy to keep it longer – it doesn’t bother me. In my way of thinking, there will eventually be capital return on the property. Since it is my first investment, I went for defence housing to minimize risk and guarantee tenants. Maybe my next property will be non-defence… we’ll see what happents.
Thank you.
Regards,
Ajay
hey people – thanks for your comments
this is the property i’m going in for: http://invest.dha.gov.au/dha/details.app?property_id=1826&finder_uid=64123f2737a2125bd3f2737a217414
That should provide the details of rent, etc. that people were quoting before..
I am paying approx $90 from my pocket per week for this property. If the house price doesn’t go up within a few years time, I am happy to keep it longer – it doesn’t bother me. In my way of thinking, there will eventually be capital return on the property. Since it is my first investment, I went for defence housing to minimize risk and guarantee tenants. Maybe my next property will be non-defence… we’ll see what happents.
Thank you.
Regards,
Ajay
Hi Derek,
The reason behind going 1/2 1/2 on this investment is because it is my first investment and I am 21. I’ve only been working for about 1 year and 1/2 full-time so I can’t go on a $475k house on my own. I am investing with someone who I trust so there’s no issues there.
Thanks.
Regards,
Ajay
Hi & thanks for your comments,
When I say 3-4 years, I mean that it would be nice to make a capital gain within that time.. of course if there’s no gain, I will hold onto the investment for a long time… but there’s always the option of selling.. as far as the income side of things goes.. I am going into this property 1/2, 1/2 with another family member…so its not as daunting as expected.. my investment is somewhere around $240k…
Thanks
Regards,
Ajay
1-2%? Just wondering on what basic you quote this figure..
thanks
regards,
ajay
Hey ppl,
Looks like we are moving in on a 4-bedroom townhouse in castle hill for $475,000… not confirmed yet but looking v.promising…
Defence housing, of course…. my 1st investment i’m v.excited about it
cheers
ajay
Hi Terry,
I’m not sure if the rents are market price.. but they are approx. $380 p/w.
I am thinking of keepingit for 3-4 yrs…and making capital gain.. thinking of investing in a townhouse somewhere in Castle Hill or Kellyville area…
Let me know your thoughts.
Regards
Ajay
Hi Anubus & thanks for your reply,
Yep, you are right – $500,000 is a fair amount for a townhouse in Nth Parramatta.. the reason is that it is Defence housing.. so as you probably know, the higher price is justified since the house guarantees tenants through a 12-year lease… so I guess I am looking at North Parra as a long-term investment…
Thanks.
Regards,
Ajay
