Maylands Dual Title investment?

Hi all,

I've been keeping my eye on Perth property for the last 18 months or so and have about a 15% deposit saved but was thinking of trying to save to 20% before jumping into the world of investment properties.

Ideally I'm looking at long time capital gain over cashflow but this one seemed to jump out at me! What do people think as a first investment? Lower risk because there's two rentals instead of one?

http://www.realestate.com.au/property-unit-wa-maylands-115087855

Thanks for any advice you can give me
 
Looks interesting with a 7%+ yield and could be worth exploring further imo.

However you may be limited to an 80% LVR as lenders would view this property as a "higher risk". Valuation could also be an issue as it may be difficult to get comparable properties.

Would also need to check if it is council approved for dual occupancy.

Upfront valuation and a due diligence clause in the O&A would be the way forward and further investigation with how lenders would view this particular property.
 
There are a number of buildings in Maylands which are riddled with concrete cancer that you don't want to touch.
Do a search on Maylands on here and they will pop up and you can check if this building is one of them.
As they are on one title it is most likely that the bank will value it as a 3 x 2 apartment and it might not stack up if the price of the unit has been increased higher than a standard 3 x 2.

You would need to check with council if the division has been approved by them
 
There are a number of buildings in Maylands which are riddled with concrete cancer that you don't want to touch.

Ask the REA for a copy of the last few years AGM Strata minutes plus financials as this will likely reveal two things.

1. What repairs need to be carried out on the building.

2. What funds are available to carry out these repairs, if feasible, as WM has illuded to in regards to the dreaded concrete cancer issue.

3. Get a building inspection done as part of the contractual conditions if you wanted to still proceed further after satisfying the above.
 
There are a number of buildings in Maylands which are riddled with concrete cancer that you don't want to touch.
Do a search on Maylands on here and they will pop up and you can check if this building is one of them.
As they are on one title it is most likely that the bank will value it as a 3 x 2 apartment and it might not stack up if the price of the unit has been increased higher than a standard 3 x 2.

You would need to check with council if the division has been approved by them

unfortunately im fairly sure (not 100% certain) that this is one of them. 18 months ago you couldve picked up a 1 bedder for around 130-150k as people were desperate to exit.

too big a risk imo
 
Thanks for the quick replies everyone, I do remember reading about the conrete cancer in some of the older high rises in Maylands and am pretty sure I've driven past this before.

The yield is very attractive but I'll definitely be cautious just because it seems too good to be true
 
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