I’ve always been a promoter of buying houses due to land content.
But I want to make a purchase near a railway station. I dont have enough money for a house close to a train station, but i have enough for a 2 bedroom unit. How is the expenses for units? (bodycorp?).
Do most units have similar expenses?
I am planning to buy around April Next year using the FHOG (14K). Rent it out for 6 months, then move in for 6 months and rent out again.
The interest per week would be about 360 (IO) Rent is around 300 per week
IS 20% of reNt a good figure for units?, i use this in calculations for houses.
Chris
Body corp fees can varry on a number of factors. One of the more expensive things can be maintaince of lifts. Other things like swimming pools, spas, saunas, large gardens, etc have running a maintaince costs that can effect the body corp fees. Older more run down places may have a larger sinkng fund for future capital works.
I believe units near train stations in the current market would be a good location to invest due to increase fuel living costs will allow some couples to drop to a single vehicle and save on fuel and running costs
Body corp fees can varry on a number of factors. One of the more expensive things can be maintaince of lifts. Other things like swimming pools, spas, saunas, large gardens, etc have running a maintaince costs that can effect the body corp fees. Older more run down places may have a larger sinkng fund for future capital works.
I believe units near train stations in the current market would be a good location to invest due to increase fuel living costs will allow some couples to drop to a single vehicle and save on fuel and running costs
Depending upon the state, the contract for sale (or the agent) will have the details of the council rates, water rates, sinking & administration funds (levies) ie how much the unit must contribute towards running the block. Add your usual other outgoings to determine your net rent ie insurance, any refurb/mtnce, agent costs etc.
Hello DraconisV
My understanding is that if you first rent out your place and then make it your PPOR, when you rent it out again you will not be able to use the 6 year rule re CGT.
Please check this with a good accountant but if I'm right it would be better for you to live in the unit for the first 6 months ( 12 months in some states ? ) and then rent it out.
Cheers
ElkaThanks Elka,
I was initially thinking live then rent, but it made more sense, as i would be able to increase my income a bit over the 6 months of it being rented out before living in it. I’ll have to check it out.
20% is the general figure for houses. I know units are always different but what average figure would you put on them?
Chris
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