- debaronMember@debaronJoin Date: 2006Post Count: 15
Recently i’ve noticed quite a number of studio apartments selling for less than 120k in Brisbane CBD. They claimed that each of them has a high occupancy rate of 97% or more and its usually rented to nearby university students from QUT. The rental yield is around 10% excluding all the annual outlay. Being a new & eager investor with tight budget, i cant help to wonder if the deal is really that good especially since they are in such good location. I havent done any indepth researching on the matter but on the surface they look very tempting. What do you guys think? Have i missed any major drawback?
also, how much do you usually allocate for the cost of the body corps and other rates etc ?
enlighten me ..joshadelsaMember@joshadelsaJoin Date: 2006Post Count: 53
Finding finance on one of these units can be quite hard at times.
Had a client come to me with one in Brissy CBD for $100,000 however it was only 20sqm which most lenders only allow units or aparments over ~44sqm…
We managed to find a lender for it however it was a very low LVR which meant he had to fork out a pretty hefty deposit. Securities similar to these almost always provide good cashflows however arent as felixible when it comes to finance and releasing equity as tradition residential IPs.
hope this helps….
[email protected]gmh454Member@gmh454Join Date: 2003Post Count: 537Originally posted by joshadelsa:
Had a client come to me with one in Brissy CBD for $100,000 however it was only 20sqm
That does not sound very cheap at all, though I am not speaking as one who has ever lived in one.
kind of reminds you of the Polices mans Ball skit, with the
…..I used to live in a rolled up newspaper in a septic tank, but tell that to the people of today and will they beleive you….joshadelsaMember@joshadelsaJoin Date: 2006Post Count: 53
hehe yeah I didnt think the price was very good (per sqaure metre) either but he was keen on it, was returning pretty good rental returns as well.
Not kinda security I’d do but there are a lot of strategies out there that investors use I guess.