Currently showing 10% return
Rental per week: $300.00
Shire Rates: $1,132.80
Water Rates: $140.00
Strata fees: $283.20 ¼ Year Built: Unknown
ASKING: $156,000Hi good people ,does this look like a good deal or am i missing something?
Thanks Dom[biggrin]Sounds good, why not flip it to another investor happy with a 5% return?
g7,
Unfortunatly i dont know anything about the flip structure .So i would probably hold for positive cashflow.
Dom[biggrin]Dom, I’d look at buying that one! Does it have growth prospects? If so, then definitely go there.
Also, ask council or whoever you can to work out year built – as long as it looks under 20.. If it looks 80 years old, I guess it doesn’t really matter….
Cheers
MelHow sure are you that it gets $300 per week? Sounds too good to me. I cant get that in the surburbs of Melbourne.
melbear,
Its 21, does that count?
Dom[biggrin]Don’t think so Dom. Post 1985 is the building depreciation…..
Cheers
MelYack,
If you want it you can have it nocharge no catch.Just PM me. This is not a deal it is not my property and i am not familiar with the area.
And obviously its not in a major city.
Dom [biggrin]Dom,
If it has strata fees, it’s must be a unit. Units were not built prior to the mid 60’s, so it can’t really be more than 40 years old (unless it was a house that was turned into units or something). How come the rent is so high if it is in a smallish place?
kay henry
<<<<<does this look like a good deal or am i missing something?>>>>>
I was just asking if the rent was accuruate. Thats what may be missing. I am not interested. I have other projects I am working on. But thanks for the offer.
Originally posted by SALACIOUS:melbear,
Its 21, does that count?
Dom[biggrin]Hey Salicious/Dom,
Did you say it (the building) was 21 years old?
I am confused; you said you weren’t sure when it was built but then said something about 21, are you referring to it’s age by that figure (in reply to Melbear’s question)?? [blink]Regardless though, (on the face of it) sounds like a good investment opportunity, but can’t comment accurately without more info; ie. location, amenities, etc.[thumbsupanim]
Cheers,
Jo
kay henry,
I have not checked out the deal at all and so i can not give you any of that information unless i talk to the agent. If you or anybody is interested i can email or pm the website.
Monopoly i was interested why it was necessary to be over or under 21 years.My apologies for confusion.
Dom[biggrin]Hi Dom,
Depreciation reasons I guess, which is why so many others made mention of the post 1985 date.
Jo
P.S. Personally, if I think it’s a good deal, and it does not fall into that category, I don’t just dismiss it. Ultimately it’s what you see appropriate to your needs.
To answer your question on whether or not this looks like a good deal, I could not tell from numbers alone. It depends where it is, what the vacancy rates are, how big the population is, the future population prediction, what industries there are etc.
ALso, like Yack, I’d want to know a lot more about the accuracy of the rent, it does sound rather high.
It also depneds on whether it needs work- yes the price is $156K but what if it needs $50K spend on renovations? A roof for example, is an expensive part to replace, so are kitchens and bathrooms.
ANd if it’s wheatherboard and the boards are chipped or cracked (I have seen some cases), and there is asbestos involved, it might also be a costly job to get that removed and replaced.So unless I knew all these details I couldn’t tell whether it was or wasn’t a good deal.
Make sure you find out as much as possible, not only the numbers.
Good luck!
Celivia
Just a little bit more detail on the area, population 28000.
Their are a few around the 8% return and their could be some that can bring higher returns.
The rent on that particular deal is what the agent has informed me.
Its i Australia and a well known place.
Feel like i am playing 20 questions.
Dom
[biggrin]Dom, the agent who told you about the rental return is the agent who is selling the property, right?
Don’t take his word for it.Check it out, see how much other properties similar to yours are actually renting for.
You can check out rents either by asking for rental rolls from agents, or on a RE website such as realestate.com or domain.com, or you can ring around RE offices and ask.
Many would be happy to give you a free rental approval/estimate.I think you will be asked for a written letter from a real estate agent (property manager) about rental income anyway by your lender before loan approval.
Celivia
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