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
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