I dont want you too give to much away if you dont want to about this purchase but being a sydney sider myself where can you get this much rental ,and for that matter a waterfront for 640k in Sydney.
Is it not a typical house, maybe multiple dwelling…???
thanksJust exchange on waterfront property in Sydney City, $640k and rental income of $850 pw for 12 months
I dont want you too give to much away if you dont want to about this purchase but being a sydney sider myself where can you get this much rental ,and for that matter a waterfront for 640k in Sydney.
Is it not a typical house, maybe multiple dwelling…???
thanksJust exchange on waterfront property in Sydney City, $640k and rental income of $850 pw for 12 months
close to 600 readers and 2 maybe 3 +ve cashflow properties
olorin sledge – did the numbers stack – up??
happy hunting[8D]
cheers
olorin sledge – did the numbers stack – up??I’m yet to call, will call today. Though I’m kinda scared… lol. I only have 1 IP and I didn’t exactly do much research when buying it (read -ve) so asking all these questions off Real Estate agents is abit daunting for me.
Bah – [
]Where did you buy? Bought one recently and still
waiting for settlement. Don’t think can get that
high rents!
Just exchange on waterfront property in Sydney City, $640k and rental income of $850 pw for 12 monthsDoes any one ever look at country WA? There are still plenty of pos cash flow properties, but you really need to do your research as I’m sure some are dud deals.
That’s alright, $44,200 in rent and $30-$33,000 IO repayments, leaves $14-$16,000pa for everything, including principle repayments.These number just don’t add up? Ok 44,200 in rent which is $850*52 is correct. Where did you get 30-33,000 in IO payments? the property is 640,000 less deposit of lets say 20% = 512,000. At a normal rate of 8% that equals 40,960 in IO payments per annum. So IO payments are greater than rental income, thus making a loss And these calculations don’t take into consideration closing costs!!
So it is far from a good +ve cashflow property.
Hi Michael,
Is it possible to tell me where you found these properties — roughly which area? Cos I haven’t found any.
Carmen
Yep, country NSW. 2 x 1/4 acre blocks, one with a dwelling, price is $4,000, rent is $60pw.$3,120 / $4,000 = 78% ROI or COC. Father died, son doesn’t want it. Yes, some repairs, but being owner-builders with all the gear, it’s not a big deal for us.
Two other IPs, not quite as good, but more the norm:
Country NSW, 1/4 acre with dwelling $60,000, rent is $130. ROI = 11%, or COC (20% dep) = 56%.
Country NSW, 1/2 acre with dwelling $55,000, rent $130. ROI = 12%, or COC (20% dep) = 61%.
(Unfortunately we had to give this last one up because of the friggin wankers at St George taking 11 weeks for finance. I’ve stopped looking until our “new” finance arrangements have come through).
Michael
That’s alright, $44,200 in rent and $30-$33,000 IO repayments, leaves $14-$16,000pa for everything, including principle repayments.These number just don’t add up? Ok 44,200 in rent which is $850*52 is correct. Where did you get 30-33,000 in IO payments? the property is 640,000 less deposit of lets say 20% = 512,000. At a normal rate of 8% that equals 40,960 in IO payments per annum. So IO payments are greater than rental income, thus making a loss And these calculations don’t take into consideration closing costs!!
So it is far from a good +ve cashflow property.
Presuming an 8% interest rate is where your calculations are wrong. At 6 to 6.5% interest, I believe his numbers weigh up ok.
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