Ive been looking at doing a purchase of blocks of units, and was wondering if someone who has done this can advise me.
For example, I found a building with 4 / 2 bedroom units in Cammaray and began doing some numbers. As I see it, this is how it turned out (broken into per/month),
PURCHASE
Cost $1,500,000.00
Deposit $150,000.00
Loan $1,350,000.00
Monthly Repayment @ 7.5% $8,437.50
CashFlow
Rent $9,040.00
Water $200.00
Council $143.33
Management $52.73
Insurance $250.00
Estimated Repairs & Maintenance $416.67
Estimated P& L $7,977.27
Total Cost Per Month -$460.23
According to this calculation, it isnt a good investment. I just wanted to ask whether I am on the right track when calculating this for a good investment or if I am missing something altogether?
Thanks
For example, I found a building with 4 / 2 bedroom units in Cammaray and began doing some numbers. As I see it, this is how it turned out (broken into per/month),
PURCHASE
Cost $1,500,000.00
Deposit $150,000.00
Loan $1,350,000.00
Monthly Repayment @ 7.5% $8,437.50
CashFlow
Rent $9,040.00
Water $200.00
Council $143.33
Management $52.73
Insurance $250.00
Estimated Repairs & Maintenance $416.67
Estimated P& L $7,977.27
Total Cost Per Month -$460.23
According to this calculation, it isnt a good investment. I just wanted to ask whether I am on the right track when calculating this for a good investment or if I am missing something altogether?
Thanks