I own a property that is 1 unit in a group of 4 I have renovated. Have sold off 3 units and considering Wrapping the last unit.
Rental in the area is approx $1000 per month. My interest repayment on the property at 7.07% is approximately $1500 per month. If I were to charge 9% interest then Wrappee would pay $1900 per month.
Does it seem reasonable to expect Wrappee to pay nearly twice the monthly costs – to own a property in – a property market that is sloooowing? Is this property ever going to work as a Wrap?
ck2468,
This is where you have to decide what profit you want to make. It does help to buy cheaply to start with.
With the numbers you have given, it would seem unlikely that you would have people rushing for the deal.
If you were to charge 8.07% and make a bit less, it may get more interest.
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