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Thanks Terry.
What if I have two properties that are cross collaterised and each has a market value of $100,000 and each experiences an increase in equity of $10,000, Under cross collaterisation, I now have total equity of $20,000 to leverage against as opposed to seperate equity of $10,000 under seperate loans with differnt banks.
.Hi Julie,
applogies for not responding earlier.
Our total cost for this Hotel Room (which is less than 30 square metres in size and comprising a room with an accompanying bathroom) was $150,000. The tenant is the Hotel Operator who covers all of the outgoings, including (i) body coporate fees (ii) water charges and (iii) council rates. Given this fact, our return is calculated as follows: (Rent Return less Interest Expenses)/Total Cost = ($230p/w *52 – $9930 pa)/$150,000 = $2030/$150000 = 1.3533%
In your circumstance, as you may be liable for the fees, your nett return I suspect will be lower.
Regards
tbsuper2