The property gets about $3600 +ve a year.
But the reason for this is, the strata is about $2500 pq … due to rennovations etc … so the vendor has agreed to pay for 2 years of the strata. So for 2 years, it'll be +ve geared … the normal strata is alot less though.
So is this worth it if +ve is only guaranteed for 2 years atm? Cheers.
How much longer is the fee's at $2500 pq ??
Its only cashflow positive if the net payments are lower than net cashflow. You need to include strata costs in the equation.
I am a bit confused. I'm looking at strata or subdivision opportunities myself. Is the focus with Strata to title it and flip it straight away to make some bucks quick or sit on it at the moment and strata it when times are better for selling when the market is moving.
John
Hi John
This is a personal opinion and everybody has different requirements.
Mine is very much to add value and then keep for the long haul to maximise rental income.
Richard Taylor | Australia's leading private lender
[Hi John,
'not always as cut and dry as flick and make some quick bucks. You need to go into that totally aware of costs etc. if you don't flick them quickly holding costs could easily eat any all or more of the profits to be made. Buyers are not always that easy to find. Don't wish to be negative but I have seen some disasters occur from people who have not thought out all scenarios.
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