All Topics / Help Needed! / Thoughts on this deal

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  • Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344
    July 6, 2007 - 2:03 pm

    Hi

    Have found via  a friend someone that wants to sell their IP.

    Type:  Townhouse (Fully Furnished)
    Group of 48 (12 in each group)
    torrens titled
    7years old
    location CBD Adelaide
    1/3 o occ 1/3 private rentals 1/3 serviced arrangement through a company.

    Currently rented till April next year: Privately Rented

    Purchase price (Private sale) $275,000 (fully furnished)

    Current rent $420pw (fully furnished)  Rental if unfurnished $340pw

    I have the deposit for a 80% lend

    275000 @ 80% loan 220000

    cash required 55000+14000costs =69000 cash in

    loan 220000 @ 7.37% =16214 I/O

    Rent 21840 pa

    PM   8%=1700
    C/R      =1400
    w/r       =700
    B ins      =420
    L in       =240

    total  = $4460

    Loan repayments 16214 + expenses 4460 = 20674

    In 21840
    out 20674

    I am not sure if this is a good deal if interest rates go up or rents don't hold etc

    How does this look to the more experienced.

    Cheers
    SG

    Profile photo of Kipper57Kipper57
    Member
    @kipper57
    Join Date: 2006
    Post Count: 252
    July 6, 2007 - 10:34 pm

    It seems as though you have already done the sums, no one can say if interest rates will go up or not so if you were concerned you could fix or do a split part fixed part variable.  Further to know if the rent would is stable it may pay to a property manager in the area

Viewing 2 posts - 1 through 2 (of 2 total)

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