Hi. Im purchasing a 3bdm unit but cant do the numbers. Can someone help me out.
Sale Price $187000
Current rental return is $240 per week
Body corp is $25 per week
council/water rates is $650 per quarterIm pretty sure that’s all my outgoings.
Whats the return after all my outgoings are paid off????Outgoings
Agency management 5% @$240pw rent is $624pa or $12pw
Insurance? $345pa from honan
Interest? lets use 80% @4.5% I/O $6732pa this means you would need to have a 20% deposit of $37,400 to put down.Other prudent potential outgoings
Re-Lease fee $320 (1wk $240 + lease prep $30 + advertisings $50)
Vacancy prudent at 1 week@240pw
Repairs (unknown but I’d allow $500pa)$12,480 Rent income
$624 Agent
$1600 Rates
$1200 Strata
$1000 Water
$345 Insurance
$6732 Interest
$320 New tenant release fee
$240 Vacancy allowance
$500 Repairs
Total outgoings = $12,561= a loss of $81 pa or approximately $1.50pw
Obviously if your property is vacant for more than one week a year (which is a minimum and I’d suggest in rural areas allowing at least 4 weeks a year which I’m guessing this isn’t Syd/Mel) then your losses could increase dramatically.
Hi @brwtito1978
Further to what Dean mentions… with the water bills, precisely what the bill will be will depend on which state the property is in, and how many water meters there are on site.
If there is just one meter, the body corp may pay the water bill and charge each unit an equal portion. Or each unit owner may get the bill directly from the water company.
As the owner you’re normally stuck with paying service charges, and if the property doesn’t have it’s own meter you’re stuck with water consumption also. If it has its own water meter you can normally have the tenant pay some or all the water usage, depending on the rules in that state. For instance in QLD for the tenant to pay all water there must be an audit done to ensure the property is suitable equipped to be water efficient.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thank you both Dean and Jacqui for your input. And yes dean your right. its not Sydney/melb. Its in queensland.
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