All Topics / Help Needed! / First IP

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  • Profile photo of robinmrobinm
    Member
    @robinm
    Join Date: 2005
    Post Count: 13
    September 11, 2005 - 2:03 pm

    Hi I think I’ve found a CF+ IP, three joining flats
    can anyone give me any advice as this my first IP and I am a little worried about flats, thes ones being at the lower end of the market
    below is the figures from a positive cashflow calcualor that someone recomended on these forums
    are the figures right in being that i have a winner or am i missing something

    11 Second Solution:
    Rent = 200
    Occupancy rate ‘3 Weeks’ = 94.23 Percent
    Solution = $94230.00
    Asking price = $216000

    Closing costs:
    Deposit 0 Percent = $0.00
    Legal fees = $800
    Stamp duty = $6050.00
    Mortgage app fees = $475
    Mortgage insurance = $0
    Valuation fees = $0
    Other borrowing costs = $400
    Clean up costs = $0
    Inspection costs = $300
    Other costs = $0
    Total closing costs = $8025.00

    Mortgage details:
    Loan Priniple and Interest = $216000.00
    Interest rate = 7.5 Percent
    Term = 30 Years
    Weekly mortgage repayments = $51.92
    Total repayments for life of loan = $81000.00

    Annual costs:
    Management fees 7 Percent = $685.96
    Letting and advertising = $0
    Body corp fees = $0
    Rates = $800
    Utility rates and fees = $0
    Insurance = $1500
    Miscalanious costs = $0
    Land tax = $300
    Maintenance 5 Percent = $489.97
    Other ownership costs = $0
    Total annual costs = $3775.93

    Summary:
    Total annual rent = $9799.40
    Total annual mortgage = $2700.00
    Total annual costs = $3775.93
    Total annual cashflow = $3323.47
    Total funded costs = $8025.00
    Risk free return = $321.00 Bank interest rate of 4 Percent.
    Annual Cash On Cash Return = 41.41 Percent
    Cashflow Positive Weekly = $63.91

    It looks good to me but………

    any advice please?

    thanks robin

    Profile photo of robinmrobinm
    Member
    @robinm
    Join Date: 2005
    Post Count: 13
    September 11, 2005 - 2:12 pm

    well dont i feel silly
    it looks like when i do use the calculator offline it dummies up the figures
    the new figures are these which doesnt look no where near as attractive plus i corrected the rent

    11 Second Solution:
    Rent = 240
    Occupancy rate ‘3 Weeks’ = 94.23 Percent
    Solution = $113075.00
    Asking price = $216000

    Closing costs:
    Deposit 0 Percent = $0.00
    Legal fees = $800
    Stamp duty = $6050.00
    Mortgage app fees = $475
    Mortgage insurance = $0
    Valuation fees = $0
    Other borrowing costs = $400
    Clean up costs = $0
    Inspection costs = $300
    Other costs = $0
    Total closing costs = $8025.00

    Mortgage details:
    Loan Principle and Interest = $216000.00
    Interest rate = 7.5 Percent
    Term = 25 Years
    Weekly mortgage repayments = $311.54
    Total repayments for life of loan = $405000.00

    Annual costs:
    Management fees 7 Percent = $823.19
    Letting and advertising = $0
    Body corp fees = $0
    Rates = $800
    Utility rates and fees = $0
    Insurance = $350
    Miscalanious costs = $0
    Land tax = $300
    Maintenance 5 Percent = $587.99
    Other ownership costs = $0
    Total annual costs = $2861.18

    Summary:
    Total annual rent = $11759.80
    Total annual mortgage = $16200.00
    Total annual costs = $2861.18
    Total annual cashflow = $-7301.38
    Total funded costs = $8025.00
    Risk free return = $321.00 Bank interest rate of 4 Percent.
    Annual Cash On Cash Return = -90.98 Percent
    Cashflow Positive Weekly = $-140.41

    oh well
    robin

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