Hi,
Been looking at the Melb City Weekly today, and realised that u can buy 24-32 sqm sized studio apartments that go for about $110+, I called and the rental is $800 p/mth.
Now, the numbers so far stack up, and it seems like u can clear $50 a month easy. However… ive got this feelin im missing something…
Anyone have any experience or ideas?
Hi terebi,
I have noticed these. Its good to then look at renting it (ie realestate.com.au – rentals) and you will find there are lots available.Banks are no fans of lending for anything under 35sqm.
May be cheap as there is not a large buyer market.
On the upside, there are plenty of international students and they pay good money to rent off uni lodge or YMCA.
Mat
Hi Terebi,
A unit that small will be very hard to get finance for, and you have no chance of getting a high LVR. They will therefore eat into your equity. If you have plenty of equity and lack cashflow, they may fit into your strategy, but if not you will be placing an anchor around your neck in terms of moving forward.
Regards
AlistairHi,
Thanks for your quick reply! Its great to have found a place where ppl are open to share ideas.
HEy, I think you guys are right on, its slowly coming back to me that banks generally don’t want to give u a loan for such small sized properties. So the catch is equity, and I don’t really have enough that way.
The search continues…
Hi terebi,
I just found out that Mac Bank will lend 35sqm and over for 1brs if you find a good deal.Mat
As mentioned you need at least 30% deposit if it is under 50 sqm.
Strata levies tend to be high.
As mostly renters rather than owner occupiers the place tends to be a little unkempt.
Capital gain generally below market.
Have high turnover of tenants causing increased management fees.
Cad
Hi,
Just wanted to let you know, studio’s rock!!!
I have 2 in QLD, both 27 sqm, 53K & 60K cost, renting at 180/w & 160/w.
Yes, the banks are shy on lending but go for the smaller credit unions etc. I use Wide Bay Aust.
Do you numbers then go surfing…like me…Caio
PI.com
Hi PI.Com,
What kind of studios?
Seviced Apartments?
Furnished Units?
Un Furnished?What type of lease? Standard Residential or leased commercially to a hotel or something?
Thanks
Mat
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