I was looking for some possible purchases to start my portfolio when i saw this advertisement:
advertised price: $169,000
suburb: carlton, melbourne.
2 BR, BIR, open plan living room.
rental return per calendar month: $1430.00The quick 11 second solution is:
1430/4= $357.50 per week.
Divide this by 2 = $178.75
multiply by 1000= $178750So you see the advertised price is less than this price already. Please note that this is a managed apartment.
What are your thoughts on this? does this sound like a good deal? it certainly fits the criteria of the 11 second pretty well.
since it is fairly close to a university, my first thought would be to rent it out for $200-250 per week, per room to students. This would definately make the profitability shoot up.
What are your thoughts on this? please help a newbie
Hey there,
Sounds promising. The student idea is a good one, just got to watch you will probably need to include services etc. You said that it is a managed apartment, would be worth while checking out what the management fee is for the building. These can be pretty high.
One other thing – is the $1430 per month opinion or fact.Good luck
Chris
Hi Chris,
it is the advertised rental price. i would probably say this is opinion, which i will make further enquiries with the real estate agent involved in regards with this property. I will also be enquiring about the management fee.
-Ken
Hi,
I live in Carlton, and I am assuming the apartment you are planning to buy is one of the many student apartments found in Carlton. There are currently 6-7 blocks of such student accommodation found within walking distances of the university.
Being a student myself 2 yrs ago, I personally wouldn't pay $200-250/week to rent a room in your apartment when I could find a 2 bedroom apartment also in the vicinity of the university for between $280-350/week in carlton. Bear in mind that most students are very budget conscious and would prefer to look for cheaper place to rent, thus looking at other areas near uni, eg parkville or brunswick etc.
Hope this helps
Good luck!coco
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