Been looking around Tassie , some good cash flow positive deals.
Most units I have enquired about in small unit blocks (4) do not have active strata management so owners just pay
their own insurance and repairs to there part of building and seem to get together to pay for a fence ect. , no
real estate agent can tell me what happens to common property insurance , seems like a lot do not have insurance
if someone is injured on common property.How do you get an insurance policy on your unit to include your liability on common property.
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This topic was modified 8 years, 5 months ago by
jeta.
We have Strata Units in Tasmania and the Body Corporate has it’s own policy for the common property liability, held in the name of the Strata Corporation number.
My mate purchased in Tassie 20 yrs ago because the return was sooo good. He sold out last year for the same price he bought in. I warned him!
Prices have certainly dropped in parts of Tassie , just picked up a 1991 built 2 bedder for $122,000 , was listed for $140,000
another in the same 4 unit complex is on the market for $160,000 , these sold last in 2008 at $174,000.
This one renting $210 owner wanted quick sale to move to mainland with family , was getting on a bit.Turns out they don’t have an active strata/ body corp so responsible for all insurance , RACT offer landlord insurance
with common property protection , other big insures don’t cover common property on your insurance property.Jeta may i ask where did you buy and why did you pick that surburb in Tasmania. What is the Cap rate, cash flow, and future growth prospect (total return)?
Hi Blackhotel, What was your friends cash on cash return over the years ?
Wadez
Searched larger regional area’s of Tasmania ,That should narrow it down to only a few.
My target market is around the $120,000 unit market.
A bit of luck with this one ,had built up a repore with the agent over the last few months
had made offers on others which had be outbid , I knew about this unit before it listed
and vendor wanted quick turn around , so had offer ready to go with quick settlement in place.I don’t particularly look for capital growth in my search , look to have at least $2000 in the
pocket after all outgoings to further pay down the mortgage and has to be undervalued.
This one is turn key , nothing to do been reno’d a few years ago.
Rates $980
Water $600
Insurance $460
Management $750
Mortgage $5715 $126,000 includes stamp duty and legals
Rent $210I’ve found RACT to be very price competitive for strata insurance for the smaller complexes
Don’t really have an option other than RACT if you don’t have an active body corp which seems common in Tassie.
I found their quote only a little more expensive but this covered common area’s which they seemed to know about,
My regular insurance companies did not offer in their insurance common area cover and not even a separate cover.-
This reply was modified 8 years, 4 months ago by jeta.
Our body corporate was ‘inactive’. RACT have a limit on the number of units on the site (7 if I recall correctly) but our broker found a company to do the strata insurance as we had 18 units on the site.
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This topic was modified 8 years, 5 months ago by
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