Im looking for opinions on my idea of buying an investment unit or townhouse in Cairns, Queensland. the property is 81k rents for 130 a week, close to beach and town centre, i know little about cairns other than its growing rapidly and its nice and sunny, by the way great site .
Im looking for opinions on my idea of buying an investment unit or townhouse in Cairns, Queensland. the property is 81k rents for 130 a week, close to beach and town centre, i know little about cairns other than its growing rapidly and its nice and sunny, by the way great site .
Sound like a goer to me.
Cairns is a great place and an area I believe will produce some positive results in the near future. Your selection is close to the ‘rules’ for pre-selection and worthy of investigation as I see it
Im looking for opinions on my idea of buying an investment unit or townhouse in Cairns, Queensland. the property is 81k rents for 130 a week, close to beach and town centre, i know little about cairns other than its growing rapidly and its nice and sunny, by the way great site .
Sound like a goer to me.
Cairns is a great place and an area I believe will produce some positive results in the near future. Your selection is close to the ‘rules’ for pre-selection and worthy of investigation as I see itHi Simotheman
just a friendly warning i think it is better not to give too many details on the forum. whilst i can testify those who i have meet wouldn’t pursue a deal someone else had looked at, we just don’t know who else reads our forum. i think it better to just give general figures.
On your figures assuming 20% down and financing the rest at 6% and costs of 3k the deal looks like this. Being a unit i have added $800 body corporate fees.
Cash return on deal is virtually break even perhaps 15 pw profit or 750per year giving a return of 4% on cash into the deal, this wouldn’t be a cash positive deal
regards westan
Hi Simothemanjust a friendly warning i think it is better not to give too many details on the forum. whilst i can testify those who i have meet wouldn’t pursue a deal someone else had looked at, we just don’t know who else reads our forum. i think it better to just give general figures.
On your figures assuming 20% down and financing the rest at 6% and costs of 3k the deal looks like this. Being a unit i have added $800 body corporate fees.
Cash return on deal is virtually break even perhaps 15 pw profit or 750per year giving a return of 4% on cash into the deal, this wouldn’t be a cash positive deal
regards westanhey westan thanks for the heads up, im knew to the hole concept of property investment, i recently gained employment with company housing and hence moved from potential first home buyer to seeking an investment property the idea of gearing appeals to me more than capital gain, any tips or strategies would be greatly asppreciated
Hi simo
some starting tips
read as much as you can, i’m NOT a fan of paying big $ to go to seminars, i don’t think thay say anything that someone hasn’t already written about. The forum is excellent because you get different views and its free and no one is trying to sell you anything (i hope)
Keep an eye on the papers to see whatis happening indifferent areas. i don’t know if your in SA i think you mentioned something about adelaide. I think near Whyalla they discovered a huge Gold reasource (multi billion dollars worth), perhaps this could be good for whyalla, it already has cheap housing. I know i’d be ringing Elders in Whyalla because they have the contract to sell the Govt’s duplex’s, or ask for Dennis Brewer at elders in Adelaide. (i tried to buy a whole street of Duplex’s in Millicent last year- Unsuccessfully, what a pity it would have made me 1/2 million Never mind, anyway thats another story)
westanthanks for that westan, just wondering if you have any idea on the price of these duplexes and what kind of vacancy rates are currant in whyalla?In your mentioning of the discovery of gold do u believe there could be good growth prospects for the area? If i was to purchase one of these properties could u tell me a good method of calculating investment returns? I know there are lots of variables but a basic outline would be very much appreciated.
RegardsSimo
don’t know much more about the gold resource than what i said, you may need to do some investigation through the papers over the past few days.
Re vacancy and prices, ring some agents and ask, i was looking about 18 months ago but ended up investing closer to home.
What you can do is use the internet. i have just looked up for you, there was an Auction on the Sept 2nd, chech http://www.elders.com.au. you could phone and ask what they sold for, how much rent will be, what need to be done and what demand is like.
To work out the return, find out the rent take away the rates / water, agent fees, insurance and the interest on the loan, take away about $10 pw for repairs the figure you are left with is the profit
regards westancheers again westan, i’ll do some research and see how it goes
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