Hi guys,
I need help with a property I’m thinking of buying heres the details-
*3 bedroom highset brick
*3 rooms under (not legal) another kitchen bathroom
*approx 600sq metres land
*on busy main road, 10km’s from CBD close to all amenities
*property in fair condition
*carport at rear for 4 cars (not lock-up)
Each room is let out for $115 total rent $690
Asking price is $350,000
Owner has to pay electricity and internet.
I think there is potential in this property, if run by a realestate and maybe increase rent.
What do you guys think??That rental is currently giving you over 10% yield which is very uncommon for residential property & could be a good buy but there may be other factors to consider.
Is it a house or a boarding house sort of accommodation? The location (main road) generally not very attractive for residential so would you be getting good capital growth? Also if its pretty run down what would the costs be to fix it up & would it be worth it?. If your currently getting 10% return on it, I’d just leave it as is & sit on it as an investment as it will pay you a small return pa by the sounds of it.
Good luck.
You indicated “(not legal)” which tells me you’d need to do something ‘under the table’ to get the $690 total rent.
Is this one near Brisbane? If so, you’ll find that its leased against Brisbane City Council tenancy laws, which causes insurance issues and other problems.
I was interested in the property because it has good CF+ and good prospects for capital growth * 10 mins from BRIS CBD * close to all amenities ect. In fact for any local Brisbane people there are alot of these properties advertised around Salisbury, Coopers Plains, Wooloongabba. Prices are initially high around 300k but returns are always above 8% which each room let individually.(usually students or single workers)Does anyone out there have a property like this, if so can they give us the PROS and CONS of owning this type of property???
Hello seank
There are several threads on this forum dealing with student accomidation.
If you do a search (under forum drop down list above) on this topic you will probably get some answers to your questions.
Hope this helps [smiling]
Elka
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