Hi Pat,

I’ve bought an Apartment similar like the one you mentioned (mine is a 2BRM of the plan). Settlement day will be in January 2004.

The developer is going to place the Caretaker of the building in the Apartment. So practically it will be leased back to the developer but under a different company name (a $2 company?)

Location wise it’s very good, between a Shopping Centre and the Railway Station, 3 minutes walk either side. Restaurants and Cafes are in front of the door.

Lease is 1×5 plus optional 4×5 years.

Rent is 5% less then the normal rent for a new 2BRM apartment in the area, which is acceptable because there’s no need for a PM and no cost to look for other tenants in the future and for the lifetime of the loan.
There’s nothing mentioned about Bond money in the Contract though which according to my Solicitor is all right. Also I have to pay Rates and Body Corporate fee.
Unlike serviced apartments this is just a normal unfurnished apartment.
In your case you might pay for the renewal of loose furniture every so many years in the future probably.

The price is lower then the usual 2BRM new apartments in this popular suburb in Brisbane.
(old price, about 30K difference now). It’s a High rise 8 storey building and located about 8 km from the CBD.

So my strategy is Buy and Hold (Negative Gearing and CG) since I still believe that there’s still room for a price increase in the coming years especially because I got it for a lower price.
At the moment all the tax money I paid goes to the Taxman.

I might sell it one day to another investor who also doesn’t want to be bothered by the task to look for good PMs and new tenants all the time.
Or I might keep and make it cashflow positive in the future?
Please let me know if somebody thinks I made a mistake here and any other comment would be appreciated!

The down site re finance is because the apartment is leased back to the developer. The Financial Institutions just don’t like that. Don’t ask me why not.

But try Heritage BS., I have no problem to get finance from them through a Broker.
Later on I’ve split and restructured the loan, 80% IP and 20% PPOR (which has been paid off) plus LOC from 2 different Lending Institutions.

Try that out if you still wish to purchase that apartment especially if it is cashflow positive.
Good luck!

Indooroopilly, Brisbane

I join westan to say “a big thank you” to Steve, all Moderators and all Senior people here for what you have done!

Is ist true that we have to provide the tenants with other accomodation at our cost when the property is flooded?

Hi Bill,

please put me in your mailing list too and looking forward to Part 2 and 3.
Thanks!

Good on you!
No hurry at all, just checking.

Same here, from about 30 enquiries by email I’ve only received 2 replies. Contacting the agents by phone was more productive.

Thanks Kay, I’m still struggling.
When I arrived in Australia I knew only “thank you and I love”, just enough to survive! []
Same happened as I arrived in Germany.
About that word….I just feel it’s so degrading.
I might be too sensitive.

Should you wish to stay at pricewert but clean places on your trip, look for “Studentherbergers”.
Enjoy your trip! (and don’t forget to visit the romantic lakes in Northen Italy)

Thanks for the Info Anastasia!

To safeguard the future and replace the current income.(9)