Forum Replies Created
I think Beenleigh is worth a look. Just my thoughts.
I think the Patinack properties changed hands sometime around March 2015, so well before the last 2 months.
Thanks for your response Benny, I appreciate your thoughts!
Check out what houses are selling for before you buy.
Capital gains? Don’t know. Really not sure. I’m hesitant to comment on areas I have not researched. All I can offer is that I think that it will go up eventually, and with a positively geared property you can presumably afford to wait. Does seem currently undervalued though. I mean, I’ve just had a quick look at what they’re selling there. When they’re selling houses there with asking price of $229,000 with rental returns like that, it can’t be too bad, can it…
Oh, check proximity to high voltage power lines, and flood zones. :)
Personally, I would have gone across the highway to Beenleigh. New town square going in, railway station there, height limit increased on high-rises etc. However, should be very good yields at Eagleby. What returns are you getting? As long as you have good tenants, I think you’ll do ok. The entire Logan area seems undervalued to me, but that’s just my impression…
Good luck!
Good luck! :)
Thanks for the response, I appreciate it. I was more interested in units than townhouses. The total size of both blocks would be 2024m2; buying both and combining the blocks was what I had in mind. Still not sure whether to proceed, but I'm leaning against it, as I'm based in Brisbane, and Kingaroy is probably a bit too far away for me to manage the project effectively. Thanks again!
Well, thanks for all the great advice, everyone!
If it helps, the two blocks are in Kingaroy. What are your thoughts? I can get enough finance to purchase both.
Cheers,
Originalsinner.
And further to that…
Erm… anyone?
Celeste, check your PM.
Thank you all for your responses. Much appreciated, and I’ve learned a lot.
Originalsinner.
Not dead yet.
Ooh, almost forgot. No phone lines, but Telstra says that it’s no problem to install them.
Originalsinner.
Not dead yet.
Originally posted by celeste:Hi Originalsinner
Questions for you
Ok. I’ll answer as best I can. I could well be wrong on anyrthing I say, so bear that in mind, as I’m relying on things like what the agent’s told me, what the questionably competent people at the council have told me, etc.
1. how many apartments in the complex?30, I think, on 15 lots. On building. The lots are all split into two units each, from what I gather.
2. any other features ie pool / caretaker / security?Pool, yes. If you can call it that. You ever see the movie “Envy” with Ben Stiller, with the pool he was planning on putting in his back yard? Just about big enough to bury a dead horse in? This pool’s a tad bigger than that, but not much. Also, there’s some weird lady who was sunbaking there. The agent who showed me the place (not the normal agent) pointed her out and told me that she often sunbakes next to the road instead. On the sidewalk.
Caretaker I don’t know about. I’m guessing they hire someone to mow the lawns etc, as the place does not appear too shabby.
Don’t know if there’s security. The complex front door was unlocked and there were no security screens. Car park has no front gate or anything of that nature.
3. what are the strata fees?Rates: $1314/yr
Body Corp: $1270.40/yr
Sinking Fund:$428.28/yr
Admin fund: $1294.96/yrTotal: $4308.04/yr. I think that’s it for fees, but could be wrong.
Hmmm. Come to think of it, I’m assuming they meant per lot, not per unit. Must clarify that.
These figures were given to me as quarterly figures, but I converted them to yearly for ease of calculation.
BTW, rent is apparently currently $185/wk and $180/wk, for a combined rental of $365/wk. Agent seems to think they won’t take offers under $200,000, despite the fact that the place has been on the market for some time. Like I said, they’re not going to like my offer. If I bother to make one.
4. I have never heard of 2 apartments on 1 title – was it 1 split in 2 or built like that?It was built as a motel complex and later subdivided under community title. So, built like that. The units are across the hall from each other, if that helps. I rang the Council and they said that under community title it was ok to rent them separately. Or live in one and rent the other. Made sure I wrote down the Council person’s name and when I spoke to them, too!
5.brief description of complex & studio’s pleaseCeleste
-heh- You sound interested. Complex used to be a motel, apparently, it was later a backpackers, and then subdivided under community title in December ’02 with lots sold off individually. so the units look like motel rooms. They could do with a paint and with the carpet being replaced, but aren’t in too bad condition. Not sure if the smoke detectors are up to spec. The units are air conditioned and furnished and on the second residential level (bottom level is the car park so three levels total). There is a small bathroom in each, a kitchenette (no stove, but has a microwave and sink etc), and there is no laundry in the individual units, though the complex has it’s own coin operated laundry. Currently with one drier out of action, from memory. One of the two units in question has a tiny balcony (3m2). There is a tiny pool as I said, the landscaping isn’t bad, and apart from a fair bit of cracking in the driveway etc, the complex is externally well presented. Lobby really needs a paint. There appears to be a general storage area on the carpark level, well fenced off and locked behind wire netting. Which is good, because there’s not a lot of space in the units.
Not dead yet.
Originally posted by mum:Hi OriginalSinner
I would be wary of these units for the following reasons.
The state of the common areas would indicate that little has been spent on their upkeep for some time. Ask for a copy of the Strata accounts and minutes of the AGMs. You are entitled to the most recent but try to get more than that. Unless there is a substantial ballance in the sinking fund account for repairs and other matters, then I would be budgetting for a charge in each of the next few years. And I would also be budgetting for a big argument at each AGM for several years to get essential repairs done.
There’s apparently $25,000 in the sinking fund. Er… is that good? I’ve not bought a unit before. The agent informs me that there are plans to paint, but the body corp agency is giving me gyp getting hold of minutes of meetings as I am not an owner. Go figure. I’ll ask the agent to get them for me.
Check recent sales of units in the complex and similar units close by.Done that. The poor current vendors were ripped off. They paid more for theirs than other buyers paid for bigger, much better units in the same complex. I know what everyone in the complex paid, when they paid it, and the size and positioning of their lots. Units in the surrounding area do not seem all that comparable, as there appear to be no studios and not too many one bedroomers in the area.
Is this purchase at a discount to the others or at a premium?Slight discount, albeit still at a really high price.
With the artificially inflated rent, they may be at a premium and unless you have long leases and tenants who wish to stay, your premium will evaporate very quickly. Budget for normal rents unless the area has very low vacancy rates. Never budget on your inflated rents lasting more than 3-6 months.Good call. I’m budgeting for a rent of about $35/week each less than quoted.
Many apartments have got around the limited parking by putting it on common land. I would be concerned. I got caught out with this when I came to sell a unit in a complex with not enough spaces recently. Most people have cars these days and expect to have off-street parking. I found it less of a problem with tenants than with owner-occupiers but potential landlords didn’t like the idea of hassles with tenants over the lack if parking.Good points.
Most lenders do not like multiple dwellings on the one title as the market for these is small. And, since the market for studio apartments is small, most lenders also don’t like studio apartments. If you are still having trouble with finance and you still want to purchase, try the non-bank lending sector. You just might have to use a non-conforming lender who doesn’t use the main mortgage insurers. PM or email me for details of one of the latter, if you wish.Mum
Might have found a lender, but would appreciate details of the non-conforming lenders.
Thanks for the help!
Originalsinner.
Not dead yet.
Thanks Celeste.
What was putting me off regarding community title were things like there being less car parks than there are individual units. Car parks are on common land in this complex, so it’s first in best dressed. The fact that you get two units per title that you can rent out individually also appears unusual. I’ve not seen that before, but the council appears happy with it. I also didn’t know whether you required permission from the body corporate to sell or something. I gather not. Thanks for the info.
I’m also concerned about a couple of other things like the small size of the units. Not too bad a position, but with artificially inflated rents etc. One tenant is apparently the owners’ son and the other pays less rent and wants to break the lease. Plus, so far, the banks seem a bit dubious about lending on anything less than 50m2. The units have a combined area of more than that, but an individual area of less. Plus, the units’ carpets and general presentation both need some serious work. Come to think of it, so does the lobby. And there’s no mailboxes; instead they have a table in the lobby. And currently no phone connection to these two units. That’s just weird.
They’re not going to like my offer.
Not dead yet.
Thanks very much for your help. I’ve since found their website, and assuming it’s accurate etc, they at least appear to have been around for a while.
Although personally unfamiliar with my friend’s spending habits, I would be amazed if I found out she was careless with her cash. If that’s all she has to worry about, she’ll be fine. I passed on the warning about fees and interest rates, and she seems comfortable with what they’ve outlined for her. So, hopefully, all should be well.
Thanks again!
Originalsinner.
Not dead yet.
