Good Morning,
Just browsing re.com as i usually do in my time off and trying to learn as much as i can and spot good deals. Spotted this ad this morning, just want to get some insight from you guys and see what you think? It looks CF+ to me, i’m not ready to buy just learning, looking and listening.
http://www.realestate.com.au/property-unit-qld-toowoomba+city-105781975
Cheers, Shaun.
Hi Shaun,
Yep, sounds CF+ to me. Sounds like a commercial premises, and that the builder is renting back the place from you UNTIL he sells the other nine. Then he’ll be gone, and you will need to fnd another tenant (but they have already signed up for the other nine – is there a tenth waiting in the wings)? Being commercial, the rental returns are often good, but, when down a tenant, you can be without rent for quite some time.Now, there is just a small chance that the builder wants to stay there as a long-term tenant after all – but I’d think the earlier scenario is more likely.
Benny
I’m a beginner too, but I reckon that property’s asking range is a bit narrow.
Haha yeah give or take a dollar maybe.
That property is still for sale, and with 3 different agents which tells you something. Looking at market rents for 1 bed in Toowoomba it is < $200. The builder is paying over the top money to bolster the price. The key consideration is how long is the lease for and what will the market rent it for if he leaves. The expenses including 80% loan at 5% total about $10K p/a so to break even on $200 p/week rent you would need to buy it at under $120K and he has it on at $195K. Looks like good cashflow on the surface but when it comes back to market if you bought at anything near the requested price you would be losing money.
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