MatthewFParticipant@matthewfJoin Date: 2006Post Count: 10
We are currently selling our block of 7 flats due to commitments elsewhere. The asking price is $355,000 and they are returning $825pw , with room to improve.
The flats are in Warren, NSW . Building report available as well as plenty of photos.
Great cashflow investment for the type of investor looking for a good extra income for little outlay.
Call – 0408 612297crjParticipant@crjJoin Date: 2004Post Count: 618
Seems a bit overpriced. 3.1% costs = 11,000 approx. If poor rural season and say half vacant the gross rent would be less than $24,000 – take away 11,000 costs, net return 3.8%
Maybe gross return of 15% based on the average annual rental received over the last3 years would be closer. If the properties had been fully let without vacancy this wouldbe closer to $286,000.MatthewFParticipant@matthewfJoin Date: 2006Post Count: 10
Wow 15% return ! These flats have very low vacancy rates and usually only take a couple of days to lease , if they become vacant. They are currently netting around 28-30k . We have kept the rents low to ensure they are always leased . The beauty of having 7 flats at low rents is that if one or two did happen to become vacant then the others still bring you in a healthy return while the flats are leased .
Let us know where you can buy at 15% , it would be good to know .crjParticipant@crjJoin Date: 2004Post Count: 618
You don’t need to convince me about the benefits of multiple occupancies on one title. I can buy multiple occupancy in a major regional city on a gross yield of 10.6%, with a net of around 7.5%. Much lower risk. I was just stating what kind of gross return I would want if I were to take on the risk of a small western nsw town dependent on agriculture and irrigated cropping where there is going to be little opportunity for capital gain and where I’m probably going to need to put 40-60% down. I quite like Warren as a town.