Hi forum,
I've been in property for over 2 years now but never looked into the Lakemba and Wiley Park areas until recently. Has anyone invested in these areas? Or do you know anyone that has? I would just like some insight and if you would recommend investing around there.
I personally believe the area(s) will grow in due time (population, then demand and finally CG), but what has grabbed my attention is the high rental returns and low property prices. Some of the properties I have looked at are already tenanted and the said tenants don't look bad at all and also want to stay long term – which is ideal.
I've also seen many unilodges come and go on the market and most of them get sold. One can only assume that being located in large, heritage buildings and the location, the strata would be very high. Putting that aside these lodges go for as little as $160,000 and 'potentially/currently' bring in up to $490 per week returns. If anyone has experience with these types of properties; what is the guarantee that it will stay tenanted and would you consider it a safe long-term investment?
Cheers,
I was also looking Unilodge before. good cashflow, however, I can't see any CG for these kind of investment. the reason is management fee is eating away huge profit. so not many people after CG for unilodge only for the cashflow
Often these student apartmnets are less than 50m2 and most banks won't finance them. So hard to onsell.
These really come in the same bucket as serviced apartments. Search this forum for serviced apartments and you will see why there is little or no capital growth
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I understand that serviced apartments have no capital growth but all I'm aiming for at the time being is cash flow. I found 2 which return 11% each after all expenses and that is including strata (whooping $1,100 p/q!) and other fees/management.
After some rough calculations I would be making around $4,000 extra cash p/a (with a 10% deposit, however banks obviously wouldn't finance, but this is all theory), if I was to sell it in 5 years time it would not be a loss.
hi P
One of my friends was trying to sell her uni lodge unit about 12 years ago for around $120k. Not much capital growth.
But, I hear they are very small in size so hard then the normal small units to finance. You may need at least a 40% deposit if you can finance at all.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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