Is this a solid deal?
Boarding House 9 bedrooms two bathrooms industrial kitchen in Summer Hill NSW. Close to the station and both fire and council certified. In very good condition. I wi;; be borowing 650K. Income is 52K pa and asking price is 740K. Council rates are 1200 PA and water is 800 PA. What do people think?John
Not in my opinion. I co-own 2 in Brisbane and would expect at least 16-18% Gross return.
I am assuming that the building is brick but after Childers insurance is difficult and expensive and they have become less attractive.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
52$k nett or gross before costs of management etc??
Newish building or older?Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
16%-18% Gross does not happen in NSW or at least I am not aware of it!
The building is 3 years old and is brick. No management costs as I will be collecting the rent myself.Hey John, I guess you must live nearby then.
Local knowledge is always valuable.
Do you reckon you can break even after costs?
Maybe you should consider a 18 percenter in the deep north???Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Giddo
Have a look at my new post. I am new to this forum business and posted a new topic instead of a return!
I have copied and pasted JohnG’s post below – Derek
I’ve lived in the ares all my life. Summer Hill is 7kms from the CBD, 10 minutes by car and 7 minutes by train. Great area that is seeing more and more growth as families move in. The rooms are leased out to mainly students as Sydney Uni is so close. The out goings on this prop are 7.5K plus upkeep.
Interested in the deep north. 18% return. WOW! That is great. More info please.
Wish I could help.Richard mentioned the 18% gross figure. I don’t know how he achieves it really. I can only get 12.7% gross out of mine. I am hands on (short stay units)and pay myself a small wage out of this and most of the rest goes to the bank in interest!
I too would like to know about the 18%.
How about it Richard? Do any capital gain fries come free with that 18% hamburger?? Or is the income hamburger satisfying enough?Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Guys get to now a few Brisbane RE agents and you will find 16-18% is the norm in Brissie.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
THis is a 7% return which is not much more than a standard property. But with this you will have many more expenses and much more risk and complications.
Terryw
Discover Home Loans
Parramatta
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Terry. where do you find 7% return in Sydney that is not in boarding or in commercial?
you have under quoted your outgoings there is a need to incude maintenance, vacancy ie is it fully occupied all year is its fire safety up to date . also is there room to improve income and what is the profile of the tenants is it also owner managed or is it been done by an agent. all this must be taken into consideration
inxs
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