Hi all,
I am looking at purchasing my second IP. I would like some comments on a property I am considering.
The purchase price is $315000, but I would like to only buy for ~$295000.
I have pre approval for the loan, using a deposit of $72000 for 20% deposit and purchase costs - using existing equity on my current IP.
The proposed property is currently leased to DHA for $280 p/w until 2008 with an additional 3 year option afterwards. Management fees are 16.5%...
My monthly repayments on IP2 would be: ~$1945 - paying Interest Only.
After costs I would only get ~$200 (ie 30% of the $280 spent on costs etc).
How can this be a good investment?
I am looking at purchasing my second IP. I would like some comments on a property I am considering.
The purchase price is $315000, but I would like to only buy for ~$295000.
I have pre approval for the loan, using a deposit of $72000 for 20% deposit and purchase costs - using existing equity on my current IP.
The proposed property is currently leased to DHA for $280 p/w until 2008 with an additional 3 year option afterwards. Management fees are 16.5%...
My monthly repayments on IP2 would be: ~$1945 - paying Interest Only.
After costs I would only get ~$200 (ie 30% of the $280 spent on costs etc).
How can this be a good investment?