Hi everyone
Just want you opinion on this. I am in neogotiation with a vendor for unit (vendor has agreed to sign). It is on the thrid floor (3 floors in total) and 2 bed 2 bath. It is very close to CBD and the ground floor was sold for 8k less.
The price will be about 350000 and a recent unit is rentd for $420. However, I am a littile worreid about the body coorp fees now. It will be about $67 per week (hlaf admi and half sink). Only 10 units and no lawn, no swimming pool and no lifts. The building is only 8 years old.
Is it still a good deal from a cash flow point of view? I am a little worried about the reselling value due to high body coorp fee.
5.2% yield after body corp is taken away from rent, sounds pretty ordinary for a unit, depends where it is i suppose
You need to compare the rentals in the complex and in the suburb to the unit your looking at. Will the rent be the same? Is the rental demand high or will it be vacant for a while?
Most body corporate fees are tax deductable but I don't belive sink fund fees are from what I've read.Have you had someone looks at the strata paperwork incase the complex has any problems or it's in the negative figures etc.
RyanJD wrote:You need to compare the rentals in the complex and in the suburb to the unit your looking at. Will the rent be the same? Is the rental demand high or will it be vacant for a while?
Most body corporate fees are tax deductable but I don't belive sink fund fees are from what I've read.Have you had someone looks at the strata paperwork incase the complex has any problems or it's in the negative figures etc.
Thanks for the reply. The solicitor is going through the strata paper work. One of the units was advitised for a week at 420 and it was gone in less than two weeks.
It is only mins away from a majoy shopping mall, 4km to CBD and major bus stops. All other units were sold around 390k in the recent years.
The average body corp is 2000. I will be effetively paying 25 more per week. 25 is nohting to me but I don’t want this to scare off potential buyers.
waydo77 wrote:5.2% yield after body corp is taken away from rent, sounds pretty ordinary for a unit, depends where it is i supposeIts loction is very good. There are 10 units in the complex. Maybe I shall have the hope with persuade other owners to get cheaper body corp?
@6% interest rate, 25 per week can cover a 22k loan. I am just a little concerned about the resell.
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