Hi All
im very new to the investing world and have been looking to acquire my first property, im in a seriouse delima as i dont know wether to purchase a house and land package or go for a apartment in the city, the apartments i have been looking into are all student apartments as i believe that there wouldnt be much of a vacancy issue..
my budget is no more than around 250,000k and am looking to invest with my sister. the rent for the apartment is $350 pw
and it is situated right in front of Melbourne Uni, body corp plus water/ elec = to about 4k pa and i think the managers fee is roughly 6 or 7 %. What im more interested in is the cash flow and not neccesarily the equity i would gain, of course that would be nice but the situation would have it that if i was to purchase this apartment hopefully in a few years we would turn the negatively geared property in a positive one as we both will also be contributing payments monthly.any help or advice would be very much appreciated
i look forward to hearing your advice…
I'm assuming the students are Uni students?
The fees you mention work out to approx $101 per week, not including the insurance and rates, maintenance and any vacancies.
Don't forget that between late Dec and early March you will have no students there if they all go home for the summer break.Your total rent for the year is likely to be $15,400 ($296 p/week) gross. That's based on 44 weeks – 2 months over Jan and Feb vacant.
Then take out your expenses of say, $120 per week to include the other expenses and you have a nett rent of $176 p/week. Best case scenario is maybe $200 p/week nett.
Without knowing what the apartment costs, how much each of you are putting in in terms of loan and deposit, we can't work out the rest of the numbers.
Hi Marc
Thanks for the inciteful and quick reply, the apartment cost is $250000 asking price, and as mentioned before the weekly rent is $350 pw….we plan to put a deposit of $10000 and also will be putting in $1200 per month each so $2400 per month which equates to about $28,000 per annum…
but after looking at the figures you pointed out sounds like we will be recieving much less in rental income then i initally used in my calculations…. back to the drawing board,,
by the sounds of it maybe a house around that mark may be a better solution?
Marc , do you have any investment properties that are apartments? or do you mainly deal in house's
i would also be interested in how you started out your journey in investing.. i am always interested in other peoples journeys and experiences and am for ever asking questions , so dont mind me haha
thanks for your time
William
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