Chermside and analysing a good deal or not - advice sought

[Breamster]

Guys, admittedly I'm still finding it really difficult to 'analyse' what is a good deal. I suppose it comes down to that I'm not sure where to set my expectations. And Im really quite damn perplexed by the whole thing..

I do understand that it has a lot to do with strategy, and how a property fits into the portfolio.

Quick background : I have two Ip's. Last two purchases have been doer upperers houses - but this next one will be a solid long term hold, most probably a unit/townhouse in Chermside district, or a 3-4 bed house in Toowoomba, and possibly couple of other QLD regionals but still researching - looking for cf+ / neutral or only slightly negative so I can keep moving forward. At present I have the ability to save cash deposits over 6mth periods for say 25-30k at 95% lends.

Would really appreciate some feedback on how the experienced 'somersofters' analyse a good deal!


For the sake of the exercise would you mind please critiquing ...(n.b looking at 5-5.5% yield on each):

2 Bed Units

http://www.realestate.com.au/property-unit-qld-chermside-112820615

http://www.realestate.com.au/property-unit-qld-chermside-116740727


2 Bed Townhouse

http://www.realestate.com.au/property-townhouse-qld-chermside-116520079

(2 bed townhouse is advertised rent at 395.00 per week)




Thanks!
Breamster

 

[impala67]

Where are your sums for each property? Have a look at the "CF+" thread on the forum. If you do a quick seach you should be able to find the thread. It is quite useful.

Most people work out the sums for each property for analysis. If you show some sums, maybe some can fill in the remaining gaps, if needed (if any), i.e., P-Price, Loan amount, loan %, others costs, rental amount p/a, agent commission, rates etc.

Regarding the locality/suburb, don't know it. I'm sure the other SS'ers can comment for you.

 

[D.T.]

5% yield and 5k strata per year means you're not left with very much. Are you ok with covering these costs whilst waiting for long term (automatic) growth?

Do any of them have ability to add value manually?

 

[zimby]

Remember supply and demand for tenants.
Lots of new Units built recently in this area.

 

[Angel]

My guess, and it is only an educated guess here rather than gospel, is that the units very close to the hospitals will fair well. They always have. The new high rises are all in close proximity to Westfields and the bus lane to the city. Two different demographics - hospital staff and city workers. A third demographic is the families of rural patients staying short-term.

I was at Westfields yesterday and found a backpacker's hostel and a Quest amongst the mid-rises in Thomas St.

I don't know much about the Kedron side, but Kedron and Wavell have also been good steady performers, with gentrification happening especially up high.

 

[KoopaTroopa]

Where are your sums for each property? Have a look at the "CF+" thread on the forum. If you do a quick seach you should be able to find the thread. It is quite useful.

Just FYI, I did a search for exactly "CF+" and it found nothing!

 

[impala67]

Just FYI, I did a search for exactly "CF+" and it found nothing!

I abbreviated, here is what I was referring to regarding sums etc.

http://somersoft.com/forums/showthread.php?t=89018&highlight=cash+flow+positive&page=3

 

[Breamster]

Thanks for the feedback so far. I will gather some more specific numbers and post them.

I am on the right track, if buying units or townhouses, to try for the older ones with generally lower fees and lower buy in? I find the numbers seem to stack better.

 

[beachside]

Here is a very basic ready reckoner I prepared earlier when playing with RR % figures. (Remember, the $ figure is more important than % figure because 50% might only represent 5 cents .) I will leave the numbers I have been playing with in it for you to see how various figures end up. You can change % and management fee in the variable box at the top. The last 2 rows are ready to put your own costs in, or clear the other rows of figures or just copy more of the last 2 rows to add more below. By clicking on cells you will be able to work out what should be left alone - self calculating formula. As I said, a very basic calculator, the only column I have not added is the $ -ve or +ve figure which is quite obvious from hold costs v net income.

Have fun