All Topics / General Property / Urgent opinion needed

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  • Profile photo of milen007milen007
    Member
    @milen007
    Join Date: 2003
    Post Count: 58

    I am new in ip. need some opinion on this deal i found.

    Auction expect around $70,000.00
    Fixed Up $130.00 rent per week
    Management fees 7%
    Stamp duty 2.4% of sale price

    any opinion about auction?

    regards,
    Erwin

    Profile photo of RodCRodC
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    @rodc
    Join Date: 2002
    Post Count: 335

    What are you aiming to get out of this deal?

    If you’re aiming for positive cashflow then it sounds like a borderline proposition. If the $70K is under the “real” value and/or you expect good capital growth then it may be a goer.

    Rod.

    Profile photo of AdministratorAdministrator
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    @piadmin
    Join Date: 2013
    Post Count: 3,225

    well…..Im gonna need more details.

    Whats the FULL address of said property? And whens the auction date? [}:)][}:)][}:)]

    As Steve says….ya GOTTA take advantage of opportunity!! So gimme the details!! LOL

    .

    ~ Heaven doesnt want me and Hell is afraid I will take over! ~

    Profile photo of milen007milen007
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    @milen007
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    Post Count: 58

    the ads runs with this description:

    Great downtown location. Rent, renovate, remove. Handy to school and shops. 10% deposit, Balance 60 days.

    Ideally located. Single unit or townhouse development site

    located in regional vic, auction on 11 sept, should i better off offering before auction or wait till auction?

    Profile photo of milen007milen007
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    @milen007
    Join Date: 2003
    Post Count: 58

    Hi Rod

    I am aiming for the positive cash flow ip, frankly i am not very familiar with the region and going to do more research on the surrounding prop.

    but…
    The property is not occupied and would require
    restumping before renting and some renovation. It ison a 406 sq metre block and is well located midtown

    quote:


    What are you aiming to get out of this deal?

    If you’re aiming for positive cashflow then it sounds like a borderline proposition. If the $70K is under the “real” value and/or you expect good capital growth then it may be a goer.

    Rod.


    Profile photo of milen007milen007
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    @milen007
    Join Date: 2003
    Post Count: 58

    midtown of the around 15k population 300km from melbourne

    Profile photo of BillfromozBillfromoz
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    @billfromoz
    Join Date: 2003
    Post Count: 381

    G’day…

    last response before I go to bed.

    Exercise specisl care at auctions.

    Obtai a written quote for all work that needs to be done BEFORE the auction…say it’s $10,000.
    As the right price is then, more like perhaps $60,000 less the $10,000 you need to spend YOUR maximum buying price is really $50,000.

    Don’t take any notice of what the agents say to you. Check out the comparable sales for the area yourself. Ensure you have your finance approved in writing before you bid.

    Isn’t the auction over? Septenmber 11th?

    If you have more private info you can email me at
    [email protected] …if you wish

    Cheers for now

    Billfromoz

    Profile photo of milen007milen007
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    @milen007
    Join Date: 2003
    Post Count: 58

    i meant the auction is on 11 oct

    yep i try to get as many information from the agent today.

    quote:


    G’day…

    last response before I go to bed.

    Exercise specisl care at auctions.

    Obtai a written quote for all work that needs to be done BEFORE the auction…say it’s $10,000.
    As the right price is then, more like perhaps $60,000 less the $10,000 you need to spend YOUR maximum buying price is really $50,000.

    Don’t take any notice of what the agents say to you. Check out the comparable sales for the area yourself. Ensure you have your finance approved in writing before you bid.

    Isn’t the auction over? Septenmber 11th?

    If you have more private info you can email me at
    [email protected] …if you wish

    Cheers for now

    Billfromoz


    Profile photo of milen007milen007
    Member
    @milen007
    Join Date: 2003
    Post Count: 58

    call the agent, and find out that the unit actually 100s years old and need the whole floor board replace and major painting.

    any suggestion to go on?

    Profile photo of milen007milen007
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    @milen007
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    Post Count: 58

    anyone experience in renovation have something to share? thanks in advance, Erwin

    Profile photo of RodCRodC
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    @rodc
    Join Date: 2002
    Post Count: 335

    Hi Erwin,

    As I said in my first post the numbers are borderline for positive cashflow. Any excessive renovation costs could really destroy your return. Billfromoz is 100% right, you really need to know exactly what your costs are going to be before the auction. As a first IP in an area you’re not that familiar with I’d probably give it a miss.

    Rod.

    Profile photo of milen007milen007
    Member
    @milen007
    Join Date: 2003
    Post Count: 58

    I decide on that as well. thanks for the advise and its assure me.

    quote:


    Hi Erwin,

    As I said in my first post the numbers are borderline for positive cashflow. Any excessive renovation costs could really destroy your return. Billfromoz is 100% right, you really need to know exactly what your costs are going to be before the auction. As a first IP in an area you’re not that familiar with I’d probably give it a miss.

    Rod.


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