DO I DO IT OR HOLD OFF

Viewing 5 posts - 1 through 5 (of 5 total)

HRMMJ
Member
@hrmmj
Join Date: 2004
Post Count: 1
February 17, 2005 - 2:28 pm
URGENT NON BIAS ADVICE NEEDED FROM A NOVICE OLD BLOKE
I’VE RECENTLY PUT AN OFFER IN FOR A GROUP OF UNSTRATED FLATS WITH GREAT POTENTIAL. FLATS ARE RETURNUNING ABOUT $450pw.
PURCHASE PRICE TOGETHER WITH TOTAL BORROWING COSTS STAMP DUTY ETC WILL BE ABOUT $470K.
QUESTION: FLATS WILL NOT BE POSITIVE CASHFLOW, HOWEVER, IF STRATED WILL INCREASE IN VALUE LONG TERM. MY DILEMA IS:
– VERY HARD TO GET A LOAN ON UN-STRATED FLATS-ANY ADVICE WOULD BE APPRECIATERD ON AVENUES TO APPROACH
– AM I BETTER OFF CHANNELLING MY INVESTMENT TO TOWARDS SOMETHING LESS RISKY
ANY OTHER ADVICE WOULD BE APPRECIATED
THE NOVICE[baaa]
woodsman
Member
@woodsman
Join Date: 2004
Post Count: 714
February 17, 2005 - 2:30 pm
Have you quantified what that potential is?
pfsfinance
Member
@pfsfinance
Join Date: 2004
Post Count: 171
February 17, 2005 - 2:36 pm
Will it be a full doc loan or a lowdoc loan.
What is the postcode.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]
Development Finance Specialist
Don Nicolussi
Participant
@don
Join Date: 2005
Post Count: 1,086
February 17, 2005 - 6:02 pm
Hi,
Woodsman has a very good point. You need to know exactly what you are dealing with. What is the strata cost and can it actually be done. Good luck if you decided to go ahead.
Don Nicolussi | Property Fan
Email Me | Phone Me
Learning, having fun and doing it!
crj
Participant
@crj
Join Date: 2004
Post Count: 618
February 17, 2005 - 10:35 pm
You definitely need to check whether it is going to be possible to strata title that particular block. Depending on the age, a strata conversion might require substantial money to be spent to put the building in a condition where the council will permit strataing eg soundproofing, fire regulations