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From: James C
I have the opportunity to buy a brand new townhouse in a location about 10km out of the Melbourne CBD. The figures don’t look bad, but as it’s a lot of money to me I’d like all the opinions I can get.
Break down of the property:
Valuers Market Value $400k
Purchase Price (discount due to wholesale property)$320k
Initial outlay $10k
Rent ($300/week) $15k
Load Interest (i/o) $22k
Expenses $4k
Depreciation $14k
Income $Enough
This leaves me with a small positive cash follow for the first couple of years and then about $1k negative cash flow for the next 10 years.
I know the information is very high level, however I’m interest in your opinion on all aspects. Is the rent realistic for a townhouse of that value? Is the deprecation too high?
Your thoughts are appreciated!
I have the opportunity to buy a brand new townhouse in a location about 10km out of the Melbourne CBD. The figures don’t look bad, but as it’s a lot of money to me I’d like all the opinions I can get.
Break down of the property:
Valuers Market Value $400k
Purchase Price (discount due to wholesale property)$320k
Initial outlay $10k
Rent ($300/week) $15k
Load Interest (i/o) $22k
Expenses $4k
Depreciation $14k
Income $Enough
This leaves me with a small positive cash follow for the first couple of years and then about $1k negative cash flow for the next 10 years.
I know the information is very high level, however I’m interest in your opinion on all aspects. Is the rent realistic for a townhouse of that value? Is the deprecation too high?
Your thoughts are appreciated!
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