I am new in ip. need some opinion on this deal i found.
Auction expect around $70,000.00
Fixed Up $130.00 rent per week
Management fees 7%
Stamp duty 2.4% of sale priceany opinion about auction?
regards,
ErwinWhat are you aiming to get out of this deal?
If you’re aiming for positive cashflow then it sounds like a borderline proposition. If the $70K is under the “real” value and/or you expect good capital growth then it may be a goer.
Rod.
well…..Im gonna need more details.
Whats the FULL address of said property? And whens the auction date? [}
][}][}]As Steve says….ya GOTTA take advantage of opportunity!! So gimme the details!! LOL
.
~ Heaven doesnt want me and Hell is afraid I will take over! ~ :þ
the ads runs with this description:
Great downtown location. Rent, renovate, remove. Handy to school and shops. 10% deposit, Balance 60 days.
Ideally located. Single unit or townhouse development site
located in regional vic, auction on 11 sept, should i better off offering before auction or wait till auction?
Hi Rod
I am aiming for the positive cash flow ip, frankly i am not very familiar with the region and going to do more research on the surrounding prop.
but…
The property is not occupied and would require
restumping before renting and some renovation. It ison a 406 sq metre block and is well located midtown
What are you aiming to get out of this deal?If you’re aiming for positive cashflow then it sounds like a borderline proposition. If the $70K is under the “real” value and/or you expect good capital growth then it may be a goer.
Rod.
midtown of the around 15k population 300km from melbourne
G’day…
last response before I go to bed.
Exercise specisl care at auctions.
Obtai a written quote for all work that needs to be done BEFORE the auction…say it’s $10,000.
As the right price is then, more like perhaps $60,000 less the $10,000 you need to spend YOUR maximum buying price is really $50,000.Don’t take any notice of what the agents say to you. Check out the comparable sales for the area yourself. Ensure you have your finance approved in writing before you bid.
Isn’t the auction over? Septenmber 11th?
If you have more private info you can email me at
[email protected] …if you wishCheers for now
Billfromoz
i meant the auction is on 11 oct
yep i try to get as many information from the agent today.
G’day…last response before I go to bed.
Exercise specisl care at auctions.
Obtai a written quote for all work that needs to be done BEFORE the auction…say it’s $10,000.
As the right price is then, more like perhaps $60,000 less the $10,000 you need to spend YOUR maximum buying price is really $50,000.Don’t take any notice of what the agents say to you. Check out the comparable sales for the area yourself. Ensure you have your finance approved in writing before you bid.
Isn’t the auction over? Septenmber 11th?
If you have more private info you can email me at
[email protected] …if you wishCheers for now
Billfromoz
call the agent, and find out that the unit actually 100s years old and need the whole floor board replace and major painting.
any suggestion to go on?
anyone experience in renovation have something to share? thanks in advance, Erwin
Hi Erwin,
As I said in my first post the numbers are borderline for positive cashflow. Any excessive renovation costs could really destroy your return. Billfromoz is 100% right, you really need to know exactly what your costs are going to be before the auction. As a first IP in an area you’re not that familiar with I’d probably give it a miss.
Rod.
I decide on that as well. thanks for the advise and its assure me.
Hi Erwin,As I said in my first post the numbers are borderline for positive cashflow. Any excessive renovation costs could really destroy your return. Billfromoz is 100% right, you really need to know exactly what your costs are going to be before the auction. As a first IP in an area you’re not that familiar with I’d probably give it a miss.
Rod.
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