We have found an investment property. It will be rented to my parents so there will be no management fees and I can count on full tenancy. The unit is in a gated complex in a location near schools, bus, trains, shops etc. Purchase price $260k, B/C fees include insurance and are $1900 p/a. 10 years old new carpet and paint.
Rent will be $320 a week. I am wanting to hold the property for cash flow. However, the new train tracks at Murrumba Downs will be passing close by the property. Is this a problem. The new train station should be a short drive from the property.
I would just like an opinion on train tracks for investment, and body corportate/gated complex etc.
The complex only has 22 units al low set and all detatched and fenced from each other.
Any advice would be great
Hi Donna
The size of the complex sounds ok – it wouldn't be classed has high density.
How close are we talking in regards to the railway? Is it quite noisy?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Donna,
Recall an article by Michael Matusik about 10 years ago which stated, in part, that proximity to train stations & other transport nodes (Eg. bus terminus) had a signifcant effect on property values. This was more the case the property was up to 1km from the transport node – the growth of these properties was approx 15% higher than other comparable properties in the same suburb.
For what it is worth I suspect we will see access t0 public transport becoming an even bigger tick in the property research spreadsheet than it currently is.
Hope this helps.
I would be getting an upfront val ASAP for a number of reasons. Train tracks quite be a massive issue or not an issue at all depending on the location of the property.
I currently have a client selling her property which backs on the train line and she had 42 people at the first open house and has received 3 offers. However this doesn't apply to all properties and locations.
Also cashflow is good but I wouldn't say excellent.
TheFinanceShop | Elite Property Finance
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I'd have an offer accepted subject to finance before ordering any upfront vals though – don't want to look too keen.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Donna
I know exactly where you are referring to in regards to the new Murrumba Downs station and don't think it would be an issue.
Just financed one on the other side of the road there and no dramas with valuation.
Agree was certainly healthy rent return.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I would look into whether your parents can get rent assistance. You may be able to increase the rent return without costing your parents any more?
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