I know that buying a house requires due diligence, and I wonder if I could use a real-life example of what we're looking at right now.
We already have one IP and are thinking of buying a 2br unit. It's located in Lynwood which is about 18km from Perth CBD, is close to major shopping centres, bus and in a suburb where older houses with larger blocks are being snapped up.
The unit is listed from 260k, its got a nice new kitchen, newish bathroom although the block itself is quite old and a bit rundown looking. Another 2 units is also for sale in the block of 18 - 1 is listed also 260k, the other 300k (fully renovated).
This unit was purchased in Feb 2009 for 202k. Units being sold around 200k in 2010. 2 units sold last year July 2014 and September 2014 ,one for 270 and the other for 278k.
Would be able to get rent of 280-290 per week. Strata fees $430 pq.
My question is - how much has the market changed/dropped from 12 months ago? What other things should we consider? How else can we work out market value? What kind of offer would you make on it?
We already have one IP and are thinking of buying a 2br unit. It's located in Lynwood which is about 18km from Perth CBD, is close to major shopping centres, bus and in a suburb where older houses with larger blocks are being snapped up.
The unit is listed from 260k, its got a nice new kitchen, newish bathroom although the block itself is quite old and a bit rundown looking. Another 2 units is also for sale in the block of 18 - 1 is listed also 260k, the other 300k (fully renovated).
This unit was purchased in Feb 2009 for 202k. Units being sold around 200k in 2010. 2 units sold last year July 2014 and September 2014 ,one for 270 and the other for 278k.
Would be able to get rent of 280-290 per week. Strata fees $430 pq.
My question is - how much has the market changed/dropped from 12 months ago? What other things should we consider? How else can we work out market value? What kind of offer would you make on it?