CBD Studio Appartments

Check the floor size – anything less than 50sqm lenders get ‘touchy’ about and generally do <edit – insert ‘not> lend to 80%. As such there can be growth issues with these properties given they only appeal to the ‘niche’ investor market.

You will also need to check tenancy rates, sound proofing between rooms and whether or not the ‘possible’ rent is achievable.

Derek
[email protected]

Property Investment Support Available. Ongoing and never stopping.

At $95000 plus closing costs eg $10000 lets say worst case 8% interest, thus eg:20%dep plus the 10K closing costs: your min payment will be ball park $130 a week. Note students are a seaonal thing in some towns. So factor the average rental occupancy and not for a full 52 weeks. Then remember in many cases students can be the worst tenants, always penniless and sometimes even with a job still “just over broke” Vandalism or grafitti, noise pollution and parties. I was a student I know how terrible I was. I never paid the rent on time and if my landlord had 100 ways to catch me and ask for the rent I had a 101 of the best excuses why I was late or unable to pay that day.

Saying all this negative stuff, now I am a little older and an investor, I figured that I would investigate students as a potential for a lucrative gain. I know that in Singapore students have wealth greater than here in Aus especially when they are over here to study. I lived in Singapore for 5 years and I have friends that were students both here and there. Those Singaporean, Malaysian or Indonesian students that haver the opportunity to study overseas
are quite capable of paying a years rent upfront.

It would be a good idea if you got their parents to stand garator for the rent and possibly to get them to pay well upfront because here in Aus the monthly rents are dirt cheap compared to rents there.

Your deal sounds great however make sure you have a good cash buffer for incase.

I hope this gives you a different perspective. Let us know how you go.
Cheers
Milzy