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Opinons PleaseSwany [32 Posts] 
Purchase Price $1.77 m I am yet to confirm these figures. I can put in about $400 - $500K cash and my plan would be to buy and hold with the hope of paying them off in 10 -12 years. I also own my PPOR which I thought I would rent out at $350 pw and move into one of the 2 bed units and be the onsite care taker as I don't work. Not having bought a large block of units before I am wondering what kind of cash reserves you would recommend and what the negatives might be. The numbers seem reasonable to me. What do you think. Thanks for your help in advance Cheers Swany Daedalus [122 Posts]  Hi Swany, The CoCR looks a bit low to me, making some broad assumptions about operating costs like insurance, maintenance etc. I'd be looking at ways that I could increase the value of the property to gain equity, and increase rents to improve CoCR... I expect that a commercial loan would be required, rather than a normal residential loan. This may increase the interest rate a tad. All the best, Daedalus.   Qlds007 [4379 Posts]  I own a couple of blocks of unit similar to the one you mention here in Brissie and they provide an excellent return and good long term CG and strata prospects. Yes if the block is on 1 Title you will be looking at a Commercial Loan rather than a standard residential loan but the rate of interest isnt that much higher. Cheers Yours in Finance sallyann [53 Posts] I have one unit a bit like that in Perth, we needed to do a lot of plumbing replacement due to clay pipes/root ingress, might be worth checking as replacement is expensive. Swany [32 Posts] Guys, thanks for your replies. I've been busy with other things and have not done anything further. Thanks again |
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