We are building four 1 Bed, 1 Bath, 1 Garage villas in Ellenbrook, on two side by side 360sqm blocks. There will be 8 of these upon completion, we will have the 4 in the middle, the builder is keeping two and another investor has purchased the other two.
Purchased as a package with NRAS credits.
All up $1,048k ($524k x 2), full turn key ready to go.
Included in the contract that the builder will buy the properties back off me at cost price plus any costs I have incurred (stamp duty, settlement agent, bank interest / fees) if for any reason the properties do not get NRAS accredited.
Additionally I got the build contract change so the final payment is 20% (they had 5% originally which I thought was useless, no incentive for them to finish the build). Also got the builder to include the having gas, water & electricity all separately metered so it can be subdivided later, looks like they have stuffed up and forgot to factor in the additional $20k headworks involved, hopefully this won't be an issue.
Bank valuations came back at $485k and $524k (second was originally $545k but valuer said that was a typo and reissued at $524k). Two comparable sales of 1x1x1s in Ellenbrook were sold for $305k & $315k in 2013 (NRAS as well). These were slightly bigger but inferior location and in a strata complex. Once build and subdivided I estimate the market value will be $300-320k.
Once complete these should be cashflow positive about $45k pa based on 105% finance and discounted rent of $260pw, the above comparables have a discounted rent of $304pw.
Quick visit on the weekend, slabs are going down
Purchased as a package with NRAS credits.
All up $1,048k ($524k x 2), full turn key ready to go.
Included in the contract that the builder will buy the properties back off me at cost price plus any costs I have incurred (stamp duty, settlement agent, bank interest / fees) if for any reason the properties do not get NRAS accredited.
Additionally I got the build contract change so the final payment is 20% (they had 5% originally which I thought was useless, no incentive for them to finish the build). Also got the builder to include the having gas, water & electricity all separately metered so it can be subdivided later, looks like they have stuffed up and forgot to factor in the additional $20k headworks involved, hopefully this won't be an issue.
Bank valuations came back at $485k and $524k (second was originally $545k but valuer said that was a typo and reissued at $524k). Two comparable sales of 1x1x1s in Ellenbrook were sold for $305k & $315k in 2013 (NRAS as well). These were slightly bigger but inferior location and in a strata complex. Once build and subdivided I estimate the market value will be $300-320k.
Once complete these should be cashflow positive about $45k pa based on 105% finance and discounted rent of $260pw, the above comparables have a discounted rent of $304pw.
Quick visit on the weekend, slabs are going down
