All Topics / Help Needed! / Where is Toongabie NSW
Just about to say yes to a 3bed 2bath and 1car in this area in a new building project in a new unit area called portico plaza in this town. can anybody shed light on it as it will cost about $389000 with upfront 10% deposit and the rest to be paid on completion.Will actually be negatively geared until tax is paid. This is on a $379000 unit Computer Projections
2010
property value $379000 in my case $389000 three bed
Purchase costs $1500
Investments $ 0
loan Amount $382736
Equity -$3736
Capital Growth 7.50%
Inflation rate (CPI) 3.00%
Gross rent/week $460 but supposedly for 3 bed $490Cash deductions
Interest (I/O) 7.00%
Rental expenses 27.15%
Pre-tax cash flow 0%
Non-cash deductions
Deprec. of buildings 2.50%
Deprec. of fittings $25430
Loan costs $ 2236
Total deductions
Tax credit (single) $100000
After-tax cash flow $0
rateof return (IRR) 64.13%
Pre=tax equivalent 104.28%
Your Cos /(income) per week
28 1st yr 25 2nd year 28 3rd yr 26 4thyera 2 5thyearMay I ask what size the land is, and if there is any spare space in the backyard? And how close is the property to one of the major arterials such as Old Windsor Road? Much of that area is now zoned to allow much denser housing (ie units/flats). If you are able to purchase a house on a nice chunk of land, it could get mighty interesting a few years down the track.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You're kidding right????
You are about to buy a place and you don't know where it is or even how to spell the suburb?
You will "supposedly" get $490 rent??? Who is going to lend you nearly 100% of the cost?
What if the bank evaluation is 10% lower when it comes time to settle? Do you have enough cash to complete the deal? If not you just threw away 10%.
Walk away and do some research.
FWIW the site is spitting distance from the station. Directly above the shopping centre (anchor tenant is Woolies), rest of the centre is a dog's breakfast with very high vacancy rate. Site was mooted 2-3 years ago but fell into financial difficulties, developer couldn't even sell his own north shore prestige unit (offered at a 50% discount, now looking for only $14M, a bargain).
Do your research on the area (and the developer if the site has been sold), you should still be able to pick up a fibro shack on 550-600 m2 in the mid-$400's-$500k.
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