How much are you prepared to pay for an IP?

Viewing 8 posts - 1 through 8 (of 8 total)

Scott No Mates
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January 14, 2011 - 7:23 am
I come across several properties every month which could make great ip’s or development sites. Some within my budget others well above. Obviously, it depends on the area but who would pay $1.2-$1.8m for an ip in Sydney? (residential or commercial).
Jamie Moore
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January 14, 2011 - 8:07 am
I wouldn't be comfortable with that sort of purchase. I like to spread the risk a bit – I'd take that cash and buy multiple properties at a lower price.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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fWord
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January 14, 2011 - 10:53 am
Depends, I guess. It is conceivable that a well-heeled investor (or even a couple) may buy the house with the intention to move in eventually (ie. buying a 'dream house' early to 'lock in' at the price they can still afford), but rent it out initially to get the loan repayments down to a manageable level before moving in.
Scott No Mates
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January 15, 2011 - 12:18 am
Median price around my way is around $1.5m, % of rentals vs owner occupied is only slightly lower than average. So there are investors (obviously not FHB or avg wage earners in the area).
Jamie Moore
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January 15, 2011 - 12:38 am
Hi Scott
What would be the average rent around that area?
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Scott No Mates
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January 15, 2011 - 3:43 am
You’d be pretty hard pushed to find anything below $750 pw & @ the other end up to $3k+ pw
DWolfe
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January 15, 2011 - 4:22 am
Hi Scott,
Interesting, that is similar to prices around my stomping ground. The higher end taps out rent wise at about $1500 pw and it has to be schmick for that.
There seems to be a few people buying for future ppor, don't have kids now but in future want to live in the area and are getting in now.
We were actually talking about looking at some of the areas hit by the GFC and getting our hands on something now while the price is sort of down.
It's interesting, if the numbers worked on a development site (and I was up there to work it) it'd be worthwhile, I think 1.2 and up is out of many peoples line of sight for an IP.
D
DWolfe | www.homestagers.com.au
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fredo_4305
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January 15, 2011 - 6:01 am
Some of those properties could have been bought some time ago as ppor and now an IP or just a straight out IP.