All Topics / General Property / Is this cheap or what?

Viewing 4 posts - 21 through 24 (of 24 total)
  • Profile photo of AussieKiwiAussieKiwi
    Participant
    @aussiekiwi
    Join Date: 2012
    Post Count: 29

    $27300.00                                     Rent at $525.00 x 52

    $3000.00                                        bodycorp

    $1000.00                                        rates

    $2047.00                                        7.5% collection on $525.00 per week

    $2000.00                                        landlord insurance

    $2000.00                                         misc

    $12800.00                                        loan at 80% of LVR does not include % on the loan

    $22847.00                                       total cost

    $4453.00                                         left over <moderator: delete language>

    What have I missed out 

    Far out thanks to everyone for your input it is greatly appreciated

    Regards Aussie K 

    Profile photo of jenny111jenny111
    Participant
    @jenny111
    Join Date: 2009
    Post Count: 90

    AussieKiwi,

    You based the rental calculation on 52 straight weeks of receiving rent. You should take 3 months (12 weeks) off. Thus, use 40weeks, instead of 52 weeks, and the rental receipts would be $21,000, not $27,000.  This means $6000 less in rental income than your original calculation.  Thus the 'leftover' (well, actually there won't be any rental income left over) will in fact be negative $1500 approx.

    Also the 7.5% agent collection fee seems to be light – probably because you haven't included other agent service charges such as periodic inspection, statement fees etc….

    Profile photo of lfjrlfjr
    Member
    @lfjr
    Join Date: 2012
    Post Count: 4

    Hi Aussiekiwi,

    Just interested to see what you ended up doing with this unit? I must admit that I was also amazed at the figures when I first came across them a few weeks back, however just as many have commented on this thread,, the warning bells went into overload.

    another point which no one seems to have mentioned is that those units were affected by the 2011 flood and that the strata insurance does not cover floods. Many of those had to be fully refurbished, i assume at the owner's expense, hence the number of them for sale?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    The flood issue is very true however i have to say the biggest issue is the finance issue.

    I have had 2 previous forum clients look at the property however the biggest issue was finance.

    Given the cash / equity amount you would need to contribute the return seems to dimnish.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 4 posts - 21 through 24 (of 24 total)

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