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Agents in the area I work in are generally charging 1.5-2% + GST, and another $1,460 into advertising. I know some other agents in the area charge up to $4,000 in advertising.
Running ads in the Domain Leader magazine can be quite expensive, just a quarter page ad hits over $320 per week.
I understand that serviced apartments have no capital growth but all I'm aiming for at the time being is cash flow. I found 2 which return 11% each after all expenses and that is including strata (whooping $1,100 p/q!) and other fees/management.
After some rough calculations I would be making around $4,000 extra cash p/a (with a 10% deposit, however banks obviously wouldn't finance, but this is all theory), if I was to sell it in 5 years time it would not be a loss.
You could go through the local tribunal instead of spending money on lawyers / court. I suggest you go into the office personally and confront them about it and also mention taking the matter to tribunal.
Good luck,
Welcome,
If you don't mind me asking, how well have you handled your money in the past/currently. If you can put away $250 each week religiously for 3 years that is $39,000 you'll have in the bank NOT counting in the interest you get on your money!
Saving for a deposit is the hardest part. A lot of finance institutions and banks won't lend you (at a decent rate) unless you have at least 5-10% deposit unfortunately.
Do some research on some suburbs outside of your main cities, have a read of this article, it will give you an idea of (affordable) suburbs you may choose to look at.
Here's some info on the FHOG. You may have to live in the property for at least 6 months before renting it out to someone though. Search for the factssheet, it has plenty of useful information.
@ FirstTimeInvestor,
<moderator: delete advertising>
I find OTP apartments to be very risky but some can be worthwhile, I unfortunately missed out on a great offer back in late 2010 with brand new 2 bedroom apartments in Kingsford being sold OTP for $460,000.. they are now being rented out for $520 per week and their resale is up by about $60,000.
Where there is demand there will always be CG. If the area you are looking at is constantly being developed or well sought after for being close to the CBD or even just for location, there will be capital growth – in Sydney that's what I noticed anyway.
You should look out for things such as; risks of investing in such developments (research about the area and past developments), strata (like Terryw said, some are outright ridiculous) and you will often have to fork out 20-30% sometimes even 40% deposit to buy one.
