- HoolignMember@hoolignJoin Date: 2008Post Count: 2
Hi all, i have noticed a number of units on the market for Varsity towers at bond uni (student accomodation) rental returns are around $260 p/w for a 1bdr apartment. you can get 2 of these for around $250 – $260k. it seems positively geared (of corse theres low body corp / raates etc on top of that) any idea why there are so many on the market? who would be selling a positively geared apartment?
any adivce would be Great!!
thanksgive90Member@give90Join Date: 2007Post Count: 54
you said you can get 2 for $260,000? is that a misprint? prices for a unit are pretty high in that area.PembiMember@pembiJoin Date: 2006Post Count: 6
Be very carefull with those.
I only managed to escape on the sunset clause with the same scenario on the Sunshine Coast uni accom.
I found out that there is 2 types of body corporate fees and together they totalled approx $ 8000 / annum ( without checking exactly what they were . ) Also over the Christmass period you have no control over holiday rental … you can be lucky or not.
At the end of the day the body corp fees squashed the potential cash flow profit ,, and I had no control or say in the investment.
RodHoolignMember@hoolignJoin Date: 2008Post Count: 2give90 wrote:you said you can get 2 for $260,000? is that a misprint? prices for a unit are pretty high in that area.
no not a misprint, its basically 2 identical apartmenst seperated by a interconnecting door, which is usually locked and rented out as 2 rooms. Both have bed/ bath / kitchen.
Also thank for the info Pem, i have been spekaing to real estate agents, looks like its $24 body corp per room, so $49 ish for both p/w and then there is a management fee on top of that, still looking into the details of this.
I am a little worried about the chrissy perios / off semester times though.vtowersParticipant@vtowersJoin Date: 2021Post Count: 0
2021… be careful here.
Varsity Towers is an apartment block which is zoned “student accommodation”. It is within a short walk of Bond Uni which attracts well-funded students. There are a few one, two and three bedroom units, but the massive majority are 66sqm dual-key units with a wall down the centre dividing them into two separate studio apartments.
Owner occupiers don’t buy student accommodation for obvious reasons. Added to this, very few lenders will lend on student accommodation, and the few that do will only lend 60%. These factors mean that the vast majority of buyers don’t come anywhere near this segment of the market, so there are very few potential buyers if you ever want to sell. First warning.
Over the past 16 years since Romanza developed these apartments they have fallen in price by over 40%. Second warning.
The building leaks when it rains and the rectification bill is estimated at $millions. Special levies have started to accrue these funds (suspended due to COVID), but a lot more money will have to be raised from the unit owners. So, factor this in if you make any offers. Third and final warning.
Current rent for studios is around $250/week with some getting more. Budget at least 10% for an outside manager (7% +fees) or at least 15% for the on-site manager (12% +fees). Budget $9k+ for your levies and rates. Avoid the opaque pooled investment scheme, last financial year those owners only received $15k from which they then had to pay levies and rates. You do NOT get a parking space included with any type of unit (they are communal property).
If you only want the income (no capital growth) and are happy to tie-up your equity indefinitely Varsity Towers might be for you.HomeBuyerLouisianaParticipant@homebuyerlouisianaJoin Date: 2020Post Count: 17
I don’t know enough to give you specific advice but will just add that you should research how many international students the university gets. If it’s high be careful as COVID has stopped them coming over. Also if a large number if students are from China there is a decline in that group of students coming to Australia
HomeBuyerLouisiana | Home Buyer Louisiana
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