High Yield in Atherton QLD- whats it worth?

[Ray Brown]

I have a 3br house is Atherton QLD 4883.
Out the back are two large 1br flats.
It brings in $460 pw gross. (Council Rates are an unpleasant $5200pa. )

The thing is, the median price in Atherton is around $310k for a similar house, and the median rent is $300pw.

I have left the rent too low for a long time, market rent would be more than $550pw.

What is it worth to an investor like you?

the house is old with ancient fittings, though well built in reasonable condition and has a new roof. The flats have been renovated, new kitchens, wiring, roofing, cladding, floor coverings, fresh paint.

 

[D.T.]

If I were you I'd also get a quote on insurance before proceeding any further as that'll use up half that rent

 

[Ray Brown]

Hi DT,

The insurance is not that bad at about $20pw.

Just building insurance, not landlord.

Also, the agent charges about $30pw.


So fixed costs are $150pw total not including repairs and maintenance.

 

[Corey Batt]

Personally I wouldn't buy anything with sky high rates + insurance, because the effective yield is still a dud even when freehold.

 

[Ray Brown]

The effective yield is still a dud

My yield is pretty good.

And surely that depends on the sale price?
And with three tenants, you can spread it around a bit.

The insurance is cheap.
It is the council rates that are offensive.

 

[Corey Batt]

My yield is pretty good.

And surely that depends on the sale price?
And with three tenants, you can spread it around a bit.

The insurance is cheap.
It is the council rates that are offensive.

Then why sell?

 

[pinkboy]

What's driving Atherton's ?growth?


pinkboy

 

[westminster]

I have a 3br house is Atherton QLD 4883.
Out the back are two large 1br flats.
It brings in $460 pw gross. (Council Rates are an unpleasant $5200pa. )

The thing is, the median price in Atherton is around $310k for a similar house, and the median rent is $300pw.

I have left the rent too low for a long time, market rent would be more than $550pw.

What is it worth to an investor like you?

the house is old with ancient fittings, though well built in reasonable condition and has a new roof. The flats have been renovated, new kitchens, wiring, roofing, cladding, floor coverings, fresh paint.

Are you asking because you are thinking of selling?

I'd get a few local REAs in to assess and give you a figure.

 

[Jenko]

What's driving Atherton's ?growth?


pinkboy

Unemployment.. No one can afford to buy?

 

[Ray Brown]

I had a RE agent give me a rough guide about a year ago. A rediculously low appraisal, low $200k's from memory, almost like they did not consider the two renovated flats out the back.
Not been vacant in 10 years, very close to town.

I want to sell so I can buy a toy with the proceeds.

 

[pinkboy]

Then its only worth what someone is willing to pay for it at that particular time.

Are the flats approved? On their own title? Are the parties renting any of the dwellings related?

Atherton doesn't strike me as a thriving metropolis driving growth or excessive cashflow, especially looking at those rates/insurance figures.

pinkboy

 

[Ray Brown]

Yes they are approved, that why the council feels it deserves so much in rates.
It works out at $1700 per tenant p/a.


It is true that Atherton does not appear to be going gangbusters, but agriculture is where the money comes from up there. It is a growth industry IMO.

What are all the Sydney people going to do with all thier vast real estate wealth.
You cannot eat money.

 

[Arnoldus]

Any chance of setting it up as workers accoms for itinerant farm workers? Could possibly boost yield significantly. Can't see another angle on it for investors if you want to boost your sale price.