Forum Replies Created

Viewing 1 post (of 1 total)
  • Profile photo of NigelWardNigelWard
    Member
    @nigelward
    Join Date: 2001
    Post Count: 1

    As cashflow is king, I guess if it was a straight purchase you’d be looking at the rental demand in the area and reaching a view about this particular property’s suitability for tenants.

    In the wrap context though I suppose the issue is more – would somebody be prepared to buy this place for say 60-70K on the basis that they would eventually own it. Looking at your repayments and the spread thereon, would their likely repayments be higher or lower than the rent they’re paying now?

    The current tenants may be settled enought that they might want to buy?

    Another issue may be your bank’s willingness to lend on a regional property and the LVR they will allow.

    Why is the owner selling? Is there some circumstance eg urgency which you can help them with (for a price!)

    where’s the win win win (seller, buyer and wrapee?)

    By the back of the envelope test it should be cashflow positive up to $60K and they only want $50K so I’d certainly investigate further.

    Cheers
    N.

Viewing 1 post (of 1 total)