First IP purchase!!Need Advice

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From: Arn Maz


I am about to make an offer on a 5 unit site in Murenbeena.The developer is prepared to settle on $415 000/unit. The rental in the area is approx.$360/week.If I obtain 100% finance, what would I be paying in every month?? Is there someone out there that can help me?

 

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Reply: 1
From: Rolf Latham


Hi

Obviously depends on the rate and how you are going to go about getting 100 % finance.

Judging by the price vs the rental is there are developers rebate ?

ta

R\
Rolf

 

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Reply: 2
From: Terry Avery


I agree with the others. This deal does not seem to stack up. The rent gives
a yield of only 4.5% so just on interest payments you are down around 2% or
more that you have to pay out of your pocket. Then you have rates,
insurance, management fees...

The most I would pay would be $288,000 per unit to give a 6.5% yield.

If you really want to crunch the numbers then buy Jan Somers PIA software
available through the somersoft.com.au website. The $200 it costs may save
you tens of thousands of dollars so don't be a cheapskate!!!

Cheers

 

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Reply: 2.1
From: Sam Coster


definatly buy the Personal Proffesional
package, I wouldn't be without it.
Apart from all the extra notes and advice it
gives, you know where you are and don't
forget half the charge that you have to take
into consideration.



Samc
Enjoy the journey, its half the fun.