All Topics / Help Needed! / student house sums

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  • Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211
    March 30, 2005 - 1:50 pm

    Hi out there – I’m hoping someone can help me crunch some figures for a potential student house deal.

    I plan to include utilities (electricity/gas/water), broadband internet and weekly communal area cleaning in the rent.

    I’m trying to work out how much I can offer in order to make this cash-flow positive. I’ve worked out what rent I can expect and I’m being conservative and working on 80% occupancy.

    I’ve also established my set-up costs – fortunately this place doesn’t need much work to make it suitable for student accomodation.

    I’m hoping those that have set up these houses (Padma? Sam Mack?) can answer this question – What is the minimum yield needed in order to make this cash flow positive? (in other words, what yield do I need to get to cover utitilies etc and still come out slightly in front?).

    Also – Sam Mack, you mentioned in an earlier thread that you’d come up with a formula for choosing good student tenants. I would be VERY grateful for any tips here.

    many thanks,
    Carlin

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    March 30, 2005 - 11:30 pm

    I am Sam, Sam I am…..

    Why don’t you give me a call.

    Cheers,

    Simon Macks
    Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211
    April 1, 2005 - 12:49 am

    Hi Colbert1982

    Sorry, but I don’t understand your explanation for making this student house cash flow positive.

    I am in negotiations now for it and I’m trying to work out how high I can go, while leaving sufficient margin to cover costs + have a little over (ie: cash-flow positive).

    What is “a loan that offers an offset set to your students financial income that then can be returned by taxation department as tax deductable, this ensuring that your allotment secures a capital regrowth and in return will avoid capitable gains taxes”?

    Can you please explain this another way so I (hopefully) get it??

    Also – I’m not eligible for first home buyers grant as already have bought own home.

    thanks,
    Carlin

    Profile photo of padmaa23108padmaa23108
    Member
    @padmaa23108
    Join Date: 2003
    Post Count: 41
    April 1, 2005 - 1:14 am

    Hi Carlin
    Sorry I could not get back to you earlier. PM me and I will reply soon. apologies, just being busy.
    Regards
    Padma

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