Hi All
Just came across this 1 bedroom unit in Adelaide & was wondering what is people's opinion on it as an investment?
http://www.domain.com.au/Property/For-Sale/Apartment/SA/Adelaide/?adid=2006897245&haid=1327541&s_rid=HomeAlert:SA::address&prevChannel=Emails&prevPage=Home%20Alert%20Open%20(postclick)&prevServer=Emails&s_cid=HomeAlert:SA&haprof=1327541
Cheers!
EvaCD
Hi EvaCD,
I've managed a couple of apartments in this complex, however I do believe this one is leased to the hotel for a few more years. You will need to look into the costs associated with having it managed by Quest as sometimes it can be quite expensive… obviously you want to be making as much cash for YOU!
The Mansions building is very old and very tired, the facilities are not great and traffic noise (reported by all of our tenants) is quite high, especially on the weekends with people lining up out the front to head down to the pub/club below…
Personally I wouldn't purchase in this building, however if the figures stack up as an investment then go for it, but definitely check with Quest what the outgoing costs for you are going to be!
Good luck!
Cheers… Ben
Thanks Ben, your comments are very helpful!!!
I also not not think that renting through Quest (or any other serviced apartments 'provider') would be great, however, I was wondering whether achieving approx. $280 rent per week (which is what the place is currently being rented for through Quest) would be possible if I rent it myself…..
Hi Eva,
We're in SA and I've looked at similar things. This one looks spacious enough for someone to live/invest in beyond being like a hotel room. The ones I investigated are managed by Breakaway and are located in the city west area (Hindley, train station, Uni SA, TAFE). They also have car parks underneath (at least the 2 bedroom ones do) which add to the income. I think there is one on RE.com. at the moment. I don't know if anyone else has knowledge of them? They are only about 15 years old, too so maybe check that option out as a comparison. They were possibly even better priced than the one you've found. This time last year a 2 bedroom, 80 approx square unit with car space was selling for under $200,000. I wish we'd bought it actually.
These are the type of investments you don't have to do much to, if you like that, but also that means you don't have a lot of control over them income-wise either, as the managers obviously take their cut first and you get whats left. A downside is the lending, as the banks won't lend the same percentage on something let commercially. Also, I believe you get a quarterly payment, so you need funds to pay your mortgage until that comes in. I'd be interested to know what you decide. We currently prefer things we can improve.
Regards,
G
Thanks GeraldineM!
I am based in Sydney so Adelaide market is a pretty foreign area for me……
May check out the other units you've mentioned and, you are right, a two bedroom place with a car parking space would be a much better investment.
By the way, do you know what is Adelaide's market rent for city car spaces licensed separately (I am thinking rent out the unit to one tenant and car parking space to someone who lives in the suburbs and drives to the city for work)?
Hi again Eva.
My information at the time was that the management company (Breakaway) take the unit AND carpark!! I know my brother in law was paying $35 a week a couple of years ago to park in town, but sorry, I don't know much about that area .
CU,
G
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