All Topics / Help Needed! / Purchase unit in same building???

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  • Profile photo of kyanfablekyanfable
    Member
    @kyanfable
    Join Date: 2010
    Post Count: 7
    February 27, 2010 - 12:39 am

    Hi guys

    I have an IP that return a gross yeild of 7.1%, not too bad.

    I have just learned of another property in the same complex going up for sale and I beleive I could buy this with another gross yeild of about 6.1%.

    My question to the forum is :

    Would you buy IP number 2 in the same building as IP1 , 3 years after you purchased IP1. Prices have increased by approx 50k, but the return is still very good as rents have increased by $110 per week in 3 years.

    Purchase Price will be aorund 280k and rented at $350 p/week in a high demand area. Sounds like a good deal.

    Any thoughts? Particulary in regards of spreading your investments into other local markets and not investing too much into one suburb.

    Thanks

    J

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 27, 2010 - 12:49 am

    Cant see an issue at all especially if you know the market and the rental possibiliites.

    You obviously have a good history of the Body Corporate and what anticpated costs might be up and coming.

    I have a couple of properties where i own every unit in the block.

    That way at least i get on the BC committee lol

    Richard Taylor | Australia's leading private lender

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