Hello,
My friend and I are about to go halves in our first property purchase. We'll be purchasing this property after doing some research in some areas in Sydney and I would like to know which of the two scenario's are more beneficial and any pros and/or cons you may have regarding this plan. The following are 2 scenario's we've come to
380k loan
3 bedder (2 bathrooms)
2 people per bedroom
125 per person
750 per week (at capacity)330k loan
2 bedder (2 bathrooms)
2 people per bedroom
125 per person
500 per week (at capacity)Our research indicates that either of these properties should be filled within the first 4 weeks of purchase. The cost of furnishing the premise to accommodate on average would be roughly 8 – 10k. We're aware of tenant retention and are relying on the fact that x amount of people may come and go after a few months, however, after these few people have come and gone, "ideally" we'll be left with good reliable tenants who will remain for a long period of time.
Other costs we've planned for are
Rates – approx 1100 Strata, Council and water per quarter
Internet – 150 per quarter
Electricity – 200 per quarter (agreement with tenants that anything above this amount will be payable by each of the tenants)
Cleaner – 150 per quarter
Total – 1600Based on the 2 bedroom apartment, this would leave 4400 (500 x 12 weeks – 1600)
Please keep in mind that we're very new to this and any info/advice would be greatly appreciated.
Thank you in advance for your time.
Two little areas to consider:
How will you split the water bill (or other bills), esp when you have tenants coming & going/vacancies?
Will $50 per month cover the cleaner's costs? You will need to consider how often you will have the cleaner attend, the duties of the cleaner (bathrooms, common areas, bedrooms etc).
Any consideration for lawn mowing?
Hi Scott,
We are planning on paying for the water bill and a percentage of the electricity. The internet will be capped at 50 a month and we'll hire 2 cleaners to do some spring cleaning at the end of each quarter (on top of a cleaning schedule the tenants should manage). There won't be a lawn because we're looking to purchase apartments only.
Are you aware of any sort of insurance costs that we may be up for?
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