We have decided to put our property at Mt Gambier SA 5290 which consists of 6 x 1 roomed units and a 3br, 1 bath house all on 1 title on the market again. We tried to sell it last August as a means of getting into another property but missed out on it and decided to keep it.
Details
1. Current rent 6 x $105, house at $175. Total $805 pw.
2. Units are furnished and power / gas are included in the rent.
3. Cost of power- around $500 per quarter
4. Cost of gas - around$140 per quarter
5. Council Rates around $2500py
6. Water including excess $1020
7. Walking distance to town centre
8. Block size is around 840m
We need 435k to make the deal happen which equates to a gross return of 9.6% for the buyer. There would be some depreciation that could be claimed as well, carpets,vinyl and the showers have been retiled. I haven't included depreciation in the above % or management fees as it depends on your own circumstances. I have done a search on Realestate.com.au for other properties for sale and their gross returns are way below ours.
The reasons why it might be a good investment.
1.Mt Gambier has lots of lifelines including Tourism(Blue Lake), Forrestry, Fishing, Wine, Dairy, Cattle/Sheep, Potatoes,
2.The proposed Penola Pulp mill is only 30min drive and will need lots of accommodation for the workforce that will build it. I contacted the office of Protavia last week and the chap said all government approvals were in place and construction is on track to start in Jan 09.It will take 3yrs to complete and employ over 1000 construction workers. Visit www.penolapulpmill.com.au for details
3. It has a population of 23,000 and is the largest regional town in SA. Visit http://www.mountgambiertourism.com.au/home.htm for more info
4. The new Bunnings was completed in October. The only one in SA outside of Adeaide
The cheapest comparitive accommodation for construction workers is the Caravan Park which is $180 pw, In the past we have had the units let at $140pw so there is plenty of upside when the Mill starts. The property isn't a mansion although it is pretty tidy. I would expect the rents to rise to around $150pw for the units which would equate to just under 13% gross return.
Please post me if you are seriously interested in buying or need more info.
Regards Bushy
Details
1. Current rent 6 x $105, house at $175. Total $805 pw.
2. Units are furnished and power / gas are included in the rent.
3. Cost of power- around $500 per quarter
4. Cost of gas - around$140 per quarter
5. Council Rates around $2500py
6. Water including excess $1020
7. Walking distance to town centre
8. Block size is around 840m
We need 435k to make the deal happen which equates to a gross return of 9.6% for the buyer. There would be some depreciation that could be claimed as well, carpets,vinyl and the showers have been retiled. I haven't included depreciation in the above % or management fees as it depends on your own circumstances. I have done a search on Realestate.com.au for other properties for sale and their gross returns are way below ours.
The reasons why it might be a good investment.
1.Mt Gambier has lots of lifelines including Tourism(Blue Lake), Forrestry, Fishing, Wine, Dairy, Cattle/Sheep, Potatoes,
2.The proposed Penola Pulp mill is only 30min drive and will need lots of accommodation for the workforce that will build it. I contacted the office of Protavia last week and the chap said all government approvals were in place and construction is on track to start in Jan 09.It will take 3yrs to complete and employ over 1000 construction workers. Visit www.penolapulpmill.com.au for details
3. It has a population of 23,000 and is the largest regional town in SA. Visit http://www.mountgambiertourism.com.au/home.htm for more info
4. The new Bunnings was completed in October. The only one in SA outside of Adeaide
The cheapest comparitive accommodation for construction workers is the Caravan Park which is $180 pw, In the past we have had the units let at $140pw so there is plenty of upside when the Mill starts. The property isn't a mansion although it is pretty tidy. I would expect the rents to rise to around $150pw for the units which would equate to just under 13% gross return.
Please post me if you are seriously interested in buying or need more info.
Regards Bushy
