在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I'm a newbie here and just wondering if the following is a good deal for a first IP.
Looking to put in a deposit of $15k at the moment.
Current sinking fund for the complex of 6 units is $24k .
Help needed urgently. Thank you in advance your help guys.
They paid $99k for it in Nov 2003.
Unit 7 sold for $150K last year. Prior to that 3 sold in 2006 for $137K, $140K & $125K.
Thanks Twobo, for such valuable and priceless info. Do you reckon though with rent at $190/wk for $149k will this be good. The current tenant seem stabile in the unit at the moment! What do you think?
Can't comment on that I'm afraid. You need to know what similar properties are selling for and renting for. Along with your expectations for future growth.
nzuvo09 said: ↑
Do you reckon though with rent at $190/wk for $149k will this be good.Click to expand...Just some purely general commentary from someone who knows nothing about the Cairns market; you’re asking a cash flow question which personally, I’d only be asking after being happy the capital outlay is competitive and the potential is good. Anyway, in terms of a cash flow answer, the BC is $35/w plus interest of say $9k annually (round numbers here, do your own maths), add rates, maintenance, insurance (landlord) and PM fees and my calcs give over $14k a year out. Based on the rent minus vacancy you’re going to see less than $10k a year in and it looks like little if any depreciation available.
Personally, over a $4k gross loss on a $150k property doesn’t stack up for me unless it’s a bargain buy with great potential. At that price range I’d be looking for a lower BC and some depreciation to make it all work.
Hope this helps
Just be careful with that market up there.
Its tourism driven, with the GFC, the yen depreciating against the AUD, and appreciating against the USD, the jap tourists are going to honolulu instead of queensland.
Thus the unemployment in hat area could get higher at some stages,
Thanks guys for such valuable info. Will get back to my drawing board and do some more search heaps of number crunching!