Based on offer of $99K 10% off original asking price
Return
$180 P/W – $9360 P/A
Repayment
P&I (Principal & Interest)
$145.28 P/W – $7554.56 P/A
I (Interest only)
$110.61 P/W – $5751.52 P/A
Yield of 9.4%$774 Insurance
$1500 Council
$500 ManagementRural property in area that has experienced, minor but steady capital growth over the last 3 years.
What else do I need to factor into this that I am missing?
Cheers,
Dave.Hi DrSupachicken,
One issue that crosses my mind is what industries sustain the area? eg. mining community, farming etc
Being in a rural area and likely not to have the support of numerous industries as major townships are, I would do an analysis of these industries and their future prospects as a well as that of the specific property.
If you're happy to post more details I'm happy to bounce back some thoughts.
Cheers
Rhys
Hi Mate,
Area I’m looking at is north west nsw. The towns there seem to have kept growing in population while others are going down with people returning back to the cities for work im guessing. I don’t know if a 9% yield would give me a positive cash flow though, which is a bit scary?
council 1500??? very expensive.. unless big block of land
$500 management fee.. you mean real estate management fee…. it can up to 10% management fee in rural area…I myself don't like rural area… as you can get 6%+ near sydney CBD with depreciation value = 8-9%
Hi Dave,
Being in I'm guessing the town is driven by mining? If so, do you know what the companies in the area are doing with employment? Has there been in projects shelved in the area? Just a few questions I would be asking.
If you message me your email address and the town you're looking at I can send you the sales history for the surrounding area if its of interest.
Cheers
Rhys
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