Mount Gambier S.A.

[jim1964]

Hello All,

Looking at purchasing unit blocks such as this in South East South Australia.


http://www.realestate.com.au/property-unitblock-sa-mount+gambier-107207213

I can do my own figures on return,but any "Locals",would much appreciate any thoughts on the area etc they are in,any feedback on tenants etc.

Cheers in advance......................



UNIT 1: $120.00 p/w Tenant moved in 30/04/12 expires 29/10/12

UNIT 2: $120.00 p/w Tenant moved in 12/5/05 Currently on a periodic lease

UNIT 3: $120.00 p/w Tenant moved in 29/3/08 Current lease expires 30/09/12
UNITS 1-5 / 29 POWELL STREET, MOUNT GAMBIER

Price: $415,000

UNIT4: $120.00 p/w Tenant moved in 10/9/10 Currently on a periodic lease

UNIT 5:$120.00 p/w Tenants current lease expires 29/09/12

Total : $600.00p/w

Rates for 20/10/11 financial year:
Council $628.00 for each unit per annum approx
SA Water $ 35.60 for all per quarter approx
Sewer $139.00 for all per quarter approx
River Murray $ 9.00 for all per quarter approx
Five x 2 bedrooms units
Brick and tile
Year Built 1976 One Title
Land Area 1032m2

 

[Corey Batt]

Interesting property there jim. The cashflow does look attractive, and some strong potential with that building. I'm not familiar with Mt G, is there significant differences in quality of different sections of town, e.g cheaper, expensive?

Fits well with the new adage of the day: Cashflow is king.

Or are you thinking of titling and flipping some/all?

 

[eKwatee]

Before looking to buy 5 units on the one allotment, I would look to buy 2 sets of adjoining duplex pairs, your yield should be higher, the purchase price would be around the same, but your overall land content would be much greater. If you are patient and strategically buy them in a set configuration (i.e. backing on to each other or on a corner, you could potential fill the back yards with community titled or strata units. Also be much easier to liquidate should you need to sell one off.

I say this from experience as I own one half of a duplex in Mount Gambier and had the opportunity to buy the 2 which backed onto the rear of mine just only last year, I could have bought the both for $207,000 (These were already on separate torrens titles) & would have had a total land size of 2100sqm including the one I originally own + it had would have had access down one side to the middle & because nearly all of the duplexes in Mt Gambier are built close to the street front, it gives them huge backyards, this would allow for community strata infills. I could have fit another 2 units in the back yards. Unfortunately I wasn't in a position to buy at the time.

 

[jim1964]

not sure CJ,was actually looking at 4 on 1 title in Mount Gambier,and this one took my eye.personally,i would title and flip,but with the cashflow,there would be no pressure.
Ekwatee,are duplexes a common sale in the Mt?the area these units are in?????????,you can pm me if you want,but your views would be appreciated.

 

[eKwatee]

Ekwatee,are duplexes a common sale in the Mt?the area these units are in?????????,you can pm me if you want,but your views would be appreciated.

Duplexes are a common sale in the Mt, however I don't think there are allot on the side of town that these units are located. Most of the duplexes are sold as one half, but you will on occasion get a pair come up for sale. I don't live in the Mt and have only been there a couple of times, and the last time was a few years ago, but when I was there I had a really good look around but would be going off of memory now & also street view when searching for property.

 

[jim1964]

Cheers,and tenants for your property?

 

[eKwatee]

Cheers,and tenants for your property?

Tenants have always been good, never been vacant for more than the normal 1 week change over from when my first tenant moved out and second one moved in.

 

[jim1964]

Cjay, buying units....commercial loan??What is lender policy on LVR?

 

[Corey Batt]

Not necessarily. 80% at resi rates is do-able. Adelaide Bank has a product which can do multi units to a title, and BMM which uses Adelaide's funds also offers a product.

 

[jim1964]

Thanks.Good to hear,one of the loans is already with Adelaide.