hi everyone,
my main aim is to turn a negatively geared IP in pyrmont into a positively geared IP. the property is a 2 bedder apartment worth around $400k and is rented out at $410.
one way i thought i could increase rental income was to setup a lease option for this property. however i dont have any experience in this area and am just going on from what i’ve read.
i would love to hear some thoughts from other people whether they think there would be a market for lease options in pyrmont or whether they think they’re are better ideas on increasing my rental income.
kefa
You can always try it, why not?
You could add $50 a week to the rent and make the option $430k on a 2 year option. That seems reasonable to me.
What would you need to know?
Josh
thanks for the quick reply Josh!
however based on my rough calculations i would probably need at least a 20% increase in the rent just to break even. so i would probably need a rent like $550 to be making a positive cash flow. i guess i’m just wondering whether anyone would be attracted to such a deal from the buyer’s point of view.
Well $550 may be alot of money for people to be paying. But for another it may work. You can make it more attractive by offering rent credits or any other sweetner you can think of and it may suit them.
I guess you should work out what you need yourself, then try and create various scenarios that you could offer.
Remember the secret here is your providing and supplying opportunity …not a two bed unit as a two bed brick unit has no emotive impact http://www.rickotton.com
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