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Hi Nathan,We have a 2BR holiday unit in FNQ from which we get pooled income. It is managed by a good onsite manager who paid considerable money for the management rights – it is his income and he is there working you may as well say, 24/7. We paid $95000 for the unit (includes all furniture, whitegoods.) The income is seasonal and can range from say $500pm to currently $1500. Not all the units in the block are in the ‘pool’ and we have just let ours our through the onsite manager for $250pw. With the pool, you have other expenses such as I think 17% commission, room cleaning, linen hire & clean, electricity, Pabx hire, advertising, audit, Austar, etc. It’s quite a lot and of course as well as the income from the units that are rented, all these other expenses are divided among those unit owners in the pool.
Income goes down from around now, is big in winter, that is up north where our unit is. Even though ours is OK, I would not recommend this type of investment as it is surely better to get a consistent income. The onsite manager would not be impressed if the unit were to be let by an outside agency either as he would lose income.
On top of the expenses, you also have B/C and rates.
Anna
Thanx heaps anna for all of your thougts. I will have to sit down & really think about this one. Thanx again, Nathan [
]Thanx for all of your insights guys & girls…. unfortunately the unit does not have the added bonuses of heated pools or any balconies, let alone 2 levels? Bummer, sounds like you have found better deals than I have….congratulations!! The unit is only 1 level and is in a block of seven, 4 one bedders & 3 two bedders. I am very concerned of the sale price & therefore the resale ability in the future? I am tempted not to pay any more than 100k given the fact that there are similar size units out there with more “side accessories” like heated pools, balconies etc….around the same prices. Not sure, will need to sit down & think about this one a bit more. Thanx for all your extremely valuable advice [
]Thanks for tour advice LR, I will check it out. I would prefer myself to go solo, but my cercumstances dont allow me to do so at this stage…. one day though, that is my alterior motive[
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The first real step is to get out on the ground. Have you read Dolf de Roo’s book “Real Estate Riches”? He has a nice little ratio, as follows, to show that real estate is a numbers game:100:10:3:1
Basically it means that you look at 100 houses (I’d say you’d want to look at 90% of them in person, not over the net), of those you may make 10 offers, of which 3 offers will be accepted and one offer you’ll be able to obtain finance for.
Of course there are no hard and fast rules, but generally if all your offers are being accepted then maybe you are offering too much (but if it’s positive geared and you’re getting a nice income that may not be too much to worry about). On the other hand, if you’re lucky enough to get finance for all 3 offers that have been accepted then you’re laughing! [8D]
Conclusion: Just keep in mind that you may have to look at over 100 houses before you are able to find just one property that you can buy.
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Jeremy Lunn
MelbourneThanks for your advice jeremy, I have read “real estate riches” but it is still good that you refreshed my memory, wish me luck
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