Hi All
Here is my situation – i have found a 2 bed duplex for sale – 2 streets from the beach.
Following all steve's valuable tips I found out
Asking price was 620 00 then 560 000 NOW 469000
The owner lives out in the country and its been on the market for a year.
They are 2 timber qlder style duplex – 2 bed /1 bath – on a 590sq block with 2 side access to 2 garages at back.
There is also a back yard for each place. Its not raised to legal height but there is storage/laundry downstairs.
They are both tenanted for 150 pw and most places in that area – which is a good area – rent out from 220 upwards.
The zoning is mixed residential.
I know there is some kind of deal going on here – i just dont know what would be the best.
Buy/Hold – we have major cash flow issues but ideally would like to do that and later develop the site
Renovate – which we could do and then sell them most places unrenovated sell for 299 000 plus in that area or rent it out higher rate
They is no body corp or anything so does that mean I could strata title it and at least sell one off to help with the loan??
In the process of trying to get finance sorted – i am greatly overwhelmed by the loan amount!
Any ideas would help!thanks
Afternoon izzgizz
Seems to me like this deal is worth persuing. It seems like you have got a price lower than what you would expect, rental lower than what you would expect and the opportunity to develop the site.
You have to aks yourself about the cahsflow and the ability to raise the funds you need to do all the extra work. Work it out now coz the deal is done now, not when you sell.
A coupls of pointers . . . check for averlays for a coastal area coz you may not be able to develop or strata the site. And even if you can the strata-ing can cost a lot more in the coastal areas. The other pointer is – maybe (and I don't know where this is coz you don't say) you are better of holiday lettting rather than having a perm tenant. I had a place in a holiday village a few years back and got $3kpw rent for Chris/NY and the same again for Easter and the about half that for Sept school hols. all that was better than a perm tenant – ad allowed me to use it outside of these peak periods.
garry,
nice work getting 3k a week!, what is the property worth to get those returns? Did you rent it out 4 holiday style yourself, or can that be done through an agent? Now that is where the agent would be earning their money every week.HI
thanks for the info Gerry G – let you know how we go…but didnt really consider the holiday letting angle…that may be feasible.
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