All Topics / General Property / Who has property units in Tasmania.

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  • Profile photo of jetajeta
    Participant
    @classiceuropa
    Join Date: 2016
    Post Count: 17

    Been looking around Tassie , some good cash flow positive deals.

    Most units I have enquired about in small unit blocks (4) do not have active strata management so owners just pay
    their own insurance and repairs to there part of building and seem to get together to pay for a fence ect. , no
    real estate agent can tell me what happens to common property insurance , seems like a lot do not have insurance
    if someone is injured on common property.

    How do you get an insurance policy on your unit to include your liability on common property.

    • This topic was modified 7 years, 8 months ago by Profile photo of jeta jeta.
    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158

    We have Strata Units in Tasmania and the Body Corporate has it’s own policy for the common property liability, held in the name of the Strata Corporation number.

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 140

    My mate purchased in Tassie 20 yrs ago because the return was sooo good. He sold out last year for the same price he bought in. I warned him!

    Profile photo of jetajeta
    Participant
    @classiceuropa
    Join Date: 2016
    Post Count: 17

    Prices have certainly dropped in parts of Tassie , just picked up a 1991 built 2 bedder for $122,000 , was listed for $140,000
    another in the same 4 unit complex is on the market for $160,000 , these sold last in 2008 at $174,000.
    This one renting $210 owner wanted quick sale to move to mainland with family , was getting on a bit.

    Turns out they don’t have an active strata/ body corp so responsible for all insurance , RACT offer landlord insurance
    with common property protection , other big insures don’t cover common property on your insurance property.

    • This reply was modified 7 years, 8 months ago by Profile photo of jeta jeta.
    • This reply was modified 7 years, 8 months ago by Profile photo of jeta jeta.
    Profile photo of wadezwadez
    Participant
    @wadez
    Join Date: 2013
    Post Count: 18

    Jeta may i ask where did you buy and why did you pick that surburb in Tasmania. What is the Cap rate, cash flow, and future growth prospect (total return)?

    Profile photo of wadezwadez
    Participant
    @wadez
    Join Date: 2013
    Post Count: 18

    Hi Blackhotel, What was your friends cash on cash return over the years ?

    Profile photo of jetajeta
    Participant
    @classiceuropa
    Join Date: 2016
    Post Count: 17

    Wadez

    Searched larger regional area’s of Tasmania ,That should narrow it down to only a few.
    My target market is around the $120,000 unit market.
    A bit of luck with this one ,had built up a repore with the agent over the last few months
    had made offers on others which had be outbid , I knew about this unit before it listed
    and vendor wanted quick turn around , so had offer ready to go with quick settlement in place.

    I don’t particularly look for capital growth in my search , look to have at least $2000 in the
    pocket after all outgoings to further pay down the mortgage and has to be undervalued.
    This one is turn key , nothing to do been reno’d a few years ago.
    Rates $980
    Water $600
    Insurance $460
    Management $750
    Mortgage $5715 $126,000 includes stamp duty and legals
    Rent $210

    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158

    I’ve found RACT to be very price competitive for strata insurance for the smaller complexes

    Profile photo of jetajeta
    Participant
    @classiceuropa
    Join Date: 2016
    Post Count: 17

    Don’t really have an option other than RACT if you don’t have an active body corp which seems common in Tassie.
    I found their quote only a little more expensive but this covered common area’s which they seemed to know about,
    My regular insurance companies did not offer in their insurance common area cover and not even a separate cover.

    • This reply was modified 7 years, 7 months ago by Profile photo of jeta jeta.
    Profile photo of Tracey BTracey B
    Participant
    @tracey-b
    Join Date: 2009
    Post Count: 158

    Our body corporate was ‘inactive’. RACT have a limit on the number of units on the site (7 if I recall correctly) but our broker found a company to do the strata insurance as we had 18 units on the site.

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