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From: Paul Guest
Inspired by the strength of the market, my wife and I have decided to sell and attempt larger developments than this particular one.
What I cannot do is budge my wife from this new property in Mitcham (best street in suburb!) so we wish to sell on a 3 year lease-back (i.e. We'll rent it back for 3 years). No agents fees (direct debit our account each month), no vacancies, no re-letting fees, no advertising, no maintenance for first 3 years (we figured that we would have to cover that if we were living here anyway). Plenty of depreciation ($42K, maybe more) and building w/off ($115K). We'll offer a 5% rent increase in the 3rd year.
Price is $360K (larger house next door valued at $500K, auction in the street 3 months ago at $468K (market has risen since).
House is 15sq on 370m2 block. 3 beds, ensuite, + dble gge, picket fence, fireplace etc.etc. Only 2 on the block, both have a 50ft frontage to elm-lined street.
Yields in our area on new stock are around 4.5%. Our return is 4.75% but without vacancy, fees, maintenance etc. for 3 years, our offer grosses up to about 5.5% when those assumptions are factored in.
Sorry for the 'spam' guys but try explaining yield, depreciation and the like to an estate agent.. they just dont get it!
Please email [email protected]
Thanks
Paul.
PS. I am happy to provide any property development advice to newcomers (risk/reward, ROI, funding, target markets etc.)
Inspired by the strength of the market, my wife and I have decided to sell and attempt larger developments than this particular one.
What I cannot do is budge my wife from this new property in Mitcham (best street in suburb!) so we wish to sell on a 3 year lease-back (i.e. We'll rent it back for 3 years). No agents fees (direct debit our account each month), no vacancies, no re-letting fees, no advertising, no maintenance for first 3 years (we figured that we would have to cover that if we were living here anyway). Plenty of depreciation ($42K, maybe more) and building w/off ($115K). We'll offer a 5% rent increase in the 3rd year.
Price is $360K (larger house next door valued at $500K, auction in the street 3 months ago at $468K (market has risen since).
House is 15sq on 370m2 block. 3 beds, ensuite, + dble gge, picket fence, fireplace etc.etc. Only 2 on the block, both have a 50ft frontage to elm-lined street.
Yields in our area on new stock are around 4.5%. Our return is 4.75% but without vacancy, fees, maintenance etc. for 3 years, our offer grosses up to about 5.5% when those assumptions are factored in.
Sorry for the 'spam' guys but try explaining yield, depreciation and the like to an estate agent.. they just dont get it!
Please email [email protected]
Thanks
Paul.
PS. I am happy to provide any property development advice to newcomers (risk/reward, ROI, funding, target markets etc.)
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