Hi guys my nephew is looking at buying his first investment property. He has looked at a one bedroom unit (off the plan) in new the Element development coming up in Kingston Harbor. It is $430K with water views. He will have 2 years to save extra deposit to avoid mortgage insurance. No doubt the development looks beautiful but as I said to him investing is all about numbers. Did I mention it's in Canberra?
Agent says it will cost him $2500 per month (all expenses - including mortgage) and he should get $1800 pm rent conservatively.
Does this sound like a good investment? $700 shortfall per month seems a bit high to me (apparently depreciation/ deductions have already been taken into account in the above figures).
Not sure what the capital growth would be on this development.
Any advice would be appreciated.
Agent says it will cost him $2500 per month (all expenses - including mortgage) and he should get $1800 pm rent conservatively.
Does this sound like a good investment? $700 shortfall per month seems a bit high to me (apparently depreciation/ deductions have already been taken into account in the above figures).
Not sure what the capital growth would be on this development.
Any advice would be appreciated.