New Investor: Investment Costs

Hi,

I’m currently looking to purchase my first investment property and I’m considering the hunter region in particular Muswellbrook or Cessnock. I’ve done some research in this area and the reason I picked these two areas is because Muswellbrook has a high proportion of the population renting (30% according to ABS yearbook stats) and Cessnock is near the Hez Hunter economic development. I was wondering if anyone could kindly offer their opinion on the potential growth, the likehood of getting a +ve geared property in this area, and their general opinions of whether it is a good idea to invest in this area.

Also I’ve compiled a list of upfront and year costs and I would appreciate comments on whether I’ve left anything out and/or whether my estimates are accurate:

*Upfront costs
Property/Loan Duty determined by NSW govt.
Legal Fees $1000
Pest Report $300
Loan Fees $150

*Annual cashflow out
Agent costs 8% of rent
Annual loan repayment (dependent on property value)
Council rates (determined via the local councils website)
Water rates $200 (this is a guess I have no idea where to determine this info.)
Building insurance $400 (I went to the NRMA website and looked for a quote. They asked me for the replacement cost of the buildling, how does one estimate this)
Land Tax (det. by state government)
Repairs $300
Strata (I was wondering do strata fees exist for EVERY unit or is it just some)?

Thanks in advance.

Tim