A 3 bed DHA townhouse recently sold near me. It had been on the market for over 12 months. Yield was around 6%. Long leases may give you security but it serverely limits your potential buyer pool should you need to sell. You don't have to go through DHA and pay "fair" market value. Plenty of distressed vendors willing to negotiate.
It's hard to get your head around paying IO on your PPOR. It goes against the australian dream of needing to "own" your home. As terry suggests there is nothing stopping you from paying more if you desired. In the early stages the the slightly lower repayments of IO will help with your cash flow.
I have a stable job in an industry not affected by ecconomic climate. If this was not the case then I would be concerned and a bit more cautious.
This is what concerns me at the moment. I don't know anyone who thinks things could get worse for them.
There are a number of reasons a vendor may request you to waive cooling off rights* There is something wrong with the property that they are aware of. * They may want to move on another property and need your commitment before they can commit elsewhere.* They have been stung by someone else who has pulled out and don't want to go through it again.
So basically its $2500K per unit. That sounds okay unless there are pending repairs or maintenance that is being ignored. I have a unit in a complex of 30 that has about 90K sinking. Check the strata report and previous strata meeting minutes for outstanding issues.
The less "machines" in an IP the better. Less can go wrong & less cost. I can just see a tennant burning up the hours on the globe by leaving it on all the time (which you will have to replace). Can you make the theatree room into another bedroom, study or games room instead? Sell the projector on ebay. Do a little painting and patching. You can…[Read more]
On one property we had a barrier treatment done and cost around $1500. Also had some baits put around the garden. I think you can just do baits which would be cheaper. Just remember to get an inspection every two years.Telling the council could also result in them telling the existing owners to pull it out! I would suggest you talk to the building…[Read more]
Just ring them and ask, “how much would the owners take”. It will give you an idea of the asking price then.
Doesn’t mean they won’t take less though. I bought a place that was advertised offers over $520K, but paid much less.
Is there currently a tennant in place? If yes, keep them in there but do not renew the leaase. You can always settle based on vacant possesion.
If no, keep vacant for a couple of weeks while property is being advertised. Just make sure the RE agent includes expected rental in advertising.
Postive cashflow is out there, here is one crapper. Or getting close to cash flow postive anyway. But not my cup of tea. CFP have been harder to find in the last couple of years but what goes around….
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