6 Units & House, for sale

We are putting our property at Mt Gambier SA 5290 which consists of 6 x 1 roomed units and a 3br, 1 bath house all on 1 title on the market. Another opportunity has come up for us and we need the proceeds from the sale to get in. If we don't get a contract on it in the next 3 weeks we will hold on to it. We are advertising this following w/end in the paper.

Now the details

1. Current rent 2x$110, 4x $105, house at $175.
Total $815 pw.

2. Units are furnished and power / gas are included in the rent.

3. Cost of power/gas for the year is about $5k
4. Council Rates around $2464py
5. Water including excess $929
6. Walking distance to town centre
7. Block size is around 840m
We are looking for offers in the high $400+ range which equates to
gross return of 8.6% ,Nett return of 6.9% . There would be some depreciation that could be claimed as well, carpets,vinyl and the showers have been retiled. I haven't included depreciation in the above % or management fees as it depends on your own circumstances. I have done a search on Realestate.com.au for other properties for sale and their gross returns are between 6.2% and 3.8%.

The reasons why it might be a good investment.

1.Mt Gambier has lots of lifelines including Tourism(Blue Lake), Forrestry, Fishing, Wine, Dairy, Cattle/Sheep, Potatoes,

2.The proposed Penola Pulp mill is only 30min drive and will employ 1350 construction workers for a few years and pump 600million into the economy if it procceeds visit www.penolapulpmill.com.au for info

3. It had the highest birth rate last year in Sth Australia, as reported in the local paper "Border Watch"15/8/07

4. The new Bunnings is nearly completed. Due to open in October.

The cheapest comparitive accommodation for construction workers is the Caravan Park which is $180 pw, In the past we have had the units let at $140pw so there is plenty of upside when the Mill starts. The property isn't a mansion although it is pretty tidy.
Please post me if you are interested or need any other info.
Regards Bushy
 
Are those rents self managed or net of PA's fees?
Could you send us some pics please Bushy?
Is Penola in SA or over Casterton way in Vic?
Thanks.
 
Hi Glucose,

1. No, As mentioned Management fees are not included,that is the rent that the tenants are paying, we pay 9% + GST for management,
2.If you are seriously considering the property please email me and I will be only to happy to send you some pics, but at this stage I would prefer not to broadcast them.
3. Penola is in SA, 25-30mins out of Mt Gambier on the way to Adelaide.

Regards Bushy
 
Units and house in Mt Gambier

Hi Bushy,

Interested in the property you have in Mt Gambier. Was in Penola six months ago doing due diligence and decided the risks were too high due to the approvals needed in State Parliament and instead bought in Roxby Downs (happy I did!).

About to buy in Gladstone QLD and then will be looking elsewhere. Would be keen to get some more data on your property. Is it strata titled? Assume it is not. Can you send me a couple of photos?

Kind regards,

Flynn

[email protected]
 
You probably should advertise it in Adelaide or even Melbourne to get the highest possible price.
Local perception of value (and depth of pockets) only go so far at a local level.
Don't let it go too cheaply.

Good luck!
 
Hi U4M
We did advertise in Adelaide and accepted an offer the next day, the chap got sick and eventually went cold and we lost 2weeks by the time we could advertise again, ads have to be placed by Wed to get in Sat paper. We missed out on the other opportunity so we don't need to sell, but if someone comes up with a reasonable offer we will still look at it. Thanks for the tip about advertising in Melb.
Regards Bushy
 
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