http://www.realestate.com.au/property-house-qld-churchill-110458629
A 5brm / 2 bathroom house or whatever you may call it I think this is a ex university house or a private school
In Ipswich forsale $125,000 and $140,000.
Question will this be a GOOD BUY
There will be additional costs beyond a standard IP that you will need to consider. Might also be the case the bank will not consider this as a standard residential loan so you may be looking at lower LVRs and higher interest rates.
I suspect July statement comment refers to figures from last financial year – not a big issue but worth asking questions about.
Thanks guys haven't heard from the Realestate agent yet will give them a call
Regards
Murray
Something not right about this in my mind, but then again I've been wrong sooo often …. I have IP's in the Ipswich Shire and no way would I get this sort of rent return, …. but then again I have no experience in student type accommodation investments.
Also, the fully leased bit …. Are you paying the $125,000 and $140,000 for the lease option or is this for outright strata purchase?
I would imagine the on-site manager/24 hour security/maintenance of grounds and facilities would need paying for and I imagine this will come out of your rent return by the management structure which if is the case won't be cheap.
Look, it's ringing alarm bells in my head, but if you are interested then I would advise that you do a heap of due diligence, especially with the lease structure/rent return/body corp (if any) and onsite management fee's and any other costs.
The bit that say's … "FULLY LEASED and July statement available on request", …. it's now November and this great deal that "you would be crazy to leave for someone else" is still available …. why?
I reckon the "owner needs urgent sale" is because he/she has realised it's not as good a deal as they thought and let's face it … if it was so good why is it still available, but as I've said … I've been wrong many, many times before.
Mystery
PS … at those prices … Capital gain hasn't been great has it?
5 Bedrooms likely to be rented to 5 tenants (students)?
Hard to find finance for student accommodation?
Is there better cheaper student accommodation coming online soon?
Whats the strata on the place?
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I heard that Councils in QLD generally levy very high annual rates; hence take into account of this high charges. Also find out whether the unit sits on the University's land; if yes, you will be only buying the 'brick' building, not the land and thus, you will have to pay rent to the uni (or whoever the owner is).
Swimming pool is also costly to maintain as well as onsite manager. Worth to check not only the current body corporate fee, but also the incremental changes over the last 5 years. Lastly, there will generally be 3-months vacancy from late Nov/early Dec to early Feb when students go back home for their hard-earned vacation. I was at once time interested in cheap student accommodation, but was taken a back a little after having done some research and learned about all the hidden costs that agents don't generally volunteer to disclose.
jenny111 wrote:I heard that Councils in QLD generally levy very high annual rates; hence take into account of this high charges. Also find out whether the unit sits on the University's land; if yes, you will be only buying the 'brick' building, not the land and thus, you will have to pay rent to the uni (or whoever the owner is).Good point Jenny111……. Ipswich council rates are extremely expensive. Our IP's rates cost in excess of $2,800 to $2,900 per annum for council and water rates per property …. Hence why we sold one and the dual occupancy development won't be strata titled until we want to sell either or both of them.
Mystery
Well if anyone is interest 0800hrs for a visit to veiw and still waiting for some more info aswell
AussieKiwi wrote:Well if anyone is interest 0800hrs for a visit to veiw and still waiting for some more info aswellHmmm, … tempting, but …. NO!
Mystery …
My thoughts awell apparently no dis-respect to any real estate agents on this forum looks like the commission is all they are after but will let everyone know what happens
Geez – if I was the vendor of that property I would not be too impressed to hear the agent has not returned your call.
Some agents are very good and earn every cent they get paid. They work extremely hard for their vendors.
Then there are agents who can only sell properties that sell themselves.
Mystery wrote:jenny111 wrote:I heard that Councils in QLD generally levy very high annual rates; hence take into account of this high charges. Also find out whether the unit sits on the University's land; if yes, you will be only buying the 'brick' building, not the land and thus, you will have to pay rent to the uni (or whoever the owner is).Good point Jenny111……. Ipswich council rates are extremely expensive. Our IP's rates cost in excess of $2,800 to $2,900 per annum for council and water rates per property …. Hence why we sold one and the dual occupancy development won't be strata titled until we want to sell either or both of them.
Mystery
In Geelong VIC you get slammed with a separate set of water rates and council rates per dwelling, regardless of whether they are strata titled.
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Update I had to ring the agent spoke to Him and it goes like this
The building and land is freehold yes FREEHOLD But it can only be used for student accommodation.
Bodycorp is $3000.00 per year rates are approx- $230 – $280 per quarter
AussieKiwi, I would be checking the rental occupancy as well. Uni's have long holiday breaks and I assume everyone 'goes home' in that time….just a thought.
7.5% for management collection and it is a yearly lease agent was unsure if it include electricity.
AussieKiwi wrote:Update I had to ring the agent spoke to Him and it goes like thisThe building and land is freehold yes FREEHOLD But it can only be used for student accommodation.
Bodycorp is $3000.00 per year rates are approx- $230 – $280 per quarter
It's starting to add up isn't it ….. at least $4,000 for the rates and body corp, … plus management fee of 7.5%, landlord insurance etc ….. you'd have to be forking out close to $6,000pa …… just to hold the unit ……. I can see why the vendor wants out.
Mystery
Being dedicated student accommodation will, probably mean your normal lending rules go out the window. You'll probably be looking at lower LVRs as minimum.
pretty much dead wood with this one
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