The CG figure calc was based on a value of 370k which is very conservative; the next door unit sold for 390, and one across the road similar size etc sold for 395, which takes the CG to about 6% if we said value is 390k.
CG
The calculation is:
(370 - 290)/290/(2013 - 2007)*100% = 4.59% pa
Compounded it looks worse:
=(370000/290000)^(1/6)-1 = 4.14%
RENTAL YIELD
Value is say 390K.
Bought in 2007 for 390K. Spent 20K on reno.
Currently renting for $400 pw.
It's very low maintenance, excellent condition, have had 3 lots of excellent tenants who've looked after it, no vacancies, in a lovely block of 4, ticks all the boxes for an IP: walk to PT, schools, cafes, town centre etc. It's in the Illawarra so I imagine slower CG than Sydney or another large city.
So it's had a good SANF factor and has attracted quality tenants. Neither DH or I are handy men, so that's another plus...with this, we don't need to be.
BUT - is it making us anything????
CG
The calculation is:
(370 - 290)/290/(2013 - 2007)*100% = 4.59% pa
Compounded it looks worse:
=(370000/290000)^(1/6)-1 = 4.14%
RENTAL YIELD
Value is say 390K.
Bought in 2007 for 390K. Spent 20K on reno.
Currently renting for $400 pw.
It's very low maintenance, excellent condition, have had 3 lots of excellent tenants who've looked after it, no vacancies, in a lovely block of 4, ticks all the boxes for an IP: walk to PT, schools, cafes, town centre etc. It's in the Illawarra so I imagine slower CG than Sydney or another large city.
So it's had a good SANF factor and has attracted quality tenants. Neither DH or I are handy men, so that's another plus...with this, we don't need to be.
BUT - is it making us anything????