I'm looking at getting my first investment property and found furnished apartment in Adelaide CBD. It's exactly the same to this other one http://www.realestate.com.au/property-apartment-sa-adelaide-109020316 (same size, building) but I can purchase it at $95k and it also has a weekly rent of $190. Fees – Strata fees (Whittles Strata Mgmt) $444 pa. Council Rates $703 pa. SA Water $191.50 pq. Revenue SA and ESL $120 pa. So all up, after all fees and everything, it should be about $130 gain. After interest repayments it will also be slightly positively geared.
By far the cheapest for anything in Adelaide CBD and a very cheap rent in comparison with other similar rooms available – so it would also be tenanted.
Does this look like a good first buy? I guess my thought is, already being the cheapest in Adelaide, there aren't likely going to be any capital loses on the property. But would there be any possible gain on something like this?
few things to say.
firstly, it'll be under fifty square metres and as such will be difficult to get a bank loan.
secondly, always check on the demand of such dwellings by talking to multiple letting agents (the rental management arm of a few real estate agencies), and also watching how quickly similar properties disappear from http://www.realestate.com.au/rent due to being rented out fast.
thirdly, wouldn't touch this one with a barge pole because the tenant is one of those serviced apartment mobs. do a search on the forum for this and you will see that there will be zero or backward capital growth, difficult to onsell since you can only sell to investors and not owner occupiers, etc etc.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Agree with Jac – not a good investment.
Just cause the selling agent says it is a good investment doesn't make it so.
Finance for something like this could be problematic. Once you have finance issues then you reduce the market size and cpital growth is constrained because the number of buyers is reduced, You would be better off aiming a little higher, waiting a while organising your finances, and entering teh market at a higher level.
Something like this reminds me of my first car – the only one I could purchase at the time. Cost me a lot of money in upkeep, didn't do the job it was supposed to and difficult to get rid of.This property will be teh same.
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