I can see the only benefit for tenant with the solar panels installed is saving their money on electricity bill, then I don't see how they're willing to pay for the extra rent to get it installed...
Elizabeth Downs -Hot lead for low cost Mortgagee Sale
- Thread starter Stangman
- Start date
I can see the only benefit for tenant with the solar panels installed is saving their money on electricity bill, then I don't see how they're willing to pay for the extra rent to get it installed...
You would expect the tenant to be paying to costs in a rental increase over the length of warranty period.
Problem is then you need to consider what happens if these tenants leave, are you going to be happy trying to get an above market rent due to solar panels or will you accept a lower rent if they move out?
IP are financial decision, the numbers need to add up.
Also will these tenants go elsewhere if you don't put solar? Can they get solar elsewhere for same rent?
What is your plans for the double? Do you plan to knockdown and divide at a later stage, say 3-7years?
I don't like to spend money on things that don't add capital value, if they ask for a new kitchen.. Yeah no worries, come to an agreement on rent increase to cover my extra costs, but then the value of my properties also gone up.
Haven't seen a valuation that has increases due to solar panels
Wow went to this one yesterday - probably the best layout I've seen in years. Definitely considering this one now as an IP or even PPOR. Does need a new kitchen - They just painted over the existing one to make it look good and since the paint has dried, half the drawers you can't even open anymore. Needs a building inspection because it's hard to see what is happening on the roof, it's a maisonette but you can't actually see the roof of this half, next door however looks like it is in terrible condition. But with the shop front, It's pretty hard to estimate purchase price or potential rent.Anyone have any opinions on this new one in Brompton? I rent in Brompton and absolutely LOVE this... it's pretty unique where it has a shop front. Have not seen anything like this so calculating price range is pretty hard to judge which is probably why it's going up for auction.
http://www.realestate.com.au/property-house-sa-brompton-113659991
This is a nice one if you could knock a few $10's off
2 Blackburn Court Elizabeth East SA 5112
http://www.realestate.com.au/property-house-sa-elizabeth+east-113789019
2 Blackburn Court Elizabeth East SA 5112
http://www.realestate.com.au/property-house-sa-elizabeth+east-113789019
Agree, it does look attractive to different kind of buyers. For developers, it appears able to subdivide a new block easily and retaining the existing house. For someone looking a family home, it's no doubt a nice one in that area. The price looks reasonable for home buyer as it's located right next to Hillbank - the most expensive suburb with post code 5112.
I guess it won't last long and likely to get sold in asking price range, as I've observed there are quite a few family buyers hunting for good quality house.
For example, 2 Winterbourne Rd at Vale, the one with Granny flat that I mentioned here before, asking price was 229-249, end up it sold for 245 right after the first *private* inspection with 8+ parties out there.
http://www.realestate.com.au/property-house-sa-elizabeth+vale-113119891
Completely hypothetical where both properties have to be in the same condition and same surroundings...
Doing the sums, 2 semis work out better financially / have better yield.
However would a house potentially offer better capital growth, or better development options? Or do you believe that prices are generally driven by yield?
Genuine question - I don't know the area that well.
yeah, I agree with you on that point,
the ultimate question I have (hear me out!) is, assuming both are similar conditioned properties
if I can pick up a 850sqm for say $160k or less, going by $ per sqm, then 1350 sqm would cost me $235k,
yet I can get 2 semis for $260k,
that being said, the 2 semis give me much better cashflow,
yet the chances of $130kx2 to grow is better then $160k to grow (slightly)
eventually they are going to get torn down whether it be 2-3 years down the track or 5+
im just trying to work out, in terms of potential which is better
$160k for 850sqm but is the extra $100k on top of that to get bigger 400m2 land from 850 to 1350 worth it, given that it will be next to each other, but im sure you can easily pick up 400sqm block for $80k without even trying
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You need to take into account your future plan which, to knock them down.
For now you look at the cash flow, but that shouldnt be the main factor.
I believe the CG in the 2 is irrelevant unless you are trying to get the equity out for other purchases, if you are knocking them down the value of the property would be gone. It would only be the value of the land.
agree, getting equity out for other purchases for these types of purchases is near impossible in my opinion,
at $260-$270k for the pair, thats 130k to $135k each, the market price for them individually would probably be $125-$135k each,
how would you propose getting any equity out of them, the only benefits I think of this kind of purchase would be maximum cashflow with the intention to landbank for development down the track
Possibly a cosmetic Reno to bring the val upto $150-160k could be possible...
Beside that will come down to when you develop, when it's the right time o develop
http://www.domain.com.au/Property/For-Sale/House/SA/Elizabeth-North/?adid=2010378325
Interested to see if anyone here purchased this one? was an affordable home but don't think it sold to an eligible buyer......any opinions on this one? Listed for 150, fact that its a semi is a negative but land is huge, Whats the possibility of developing in the backyard of a semi? ha ha
Interested to see if anyone here purchased this one? was an affordable home but don't think it sold to an eligible buyer......any opinions on this one? Listed for 150, fact that its a semi is a negative but land is huge, Whats the possibility of developing in the backyard of a semi? ha ha
Pairs of semi's are good for short term cashflow and good long-term CG potential.
Go find out what some of these semi pairs sold for 10 years ago.
Also consider that at the peak of the market post GFC pairs were selling for $340k a pair, you can see where the market can head.
I'd take a pair of semi's any day over single standalones for set and forget.
Been a newbie I gotta ask.
Why would you say that getting equity out is near impossible?
As I never purchased any semi yet, but considering.
Or is getting equity out mainly applies to Houses, and not so much semis
as in getting equity out in the short term, unless you buy it for $30k+ less market value which wont happen in the current market climate unless you get stupidly lucky or if the houses have severe defects
http://www.realestate.com.au/property-duplex+semi+detached-sa-elizabeth+east-113794891
Did anyone go to the auction on Sat and what was the outcome?
Did anyone go to the auction on Sat and what was the outcome?
5113 here I come..
Just remember the rules: Don't make eye contact with ANYONE, don't stop at red lights and keep a bag of small change to keep the beggars at bay.
Ok, so maybe it isn't that bad!
