Newbie (one more) - serviced appartment

[Moon91]

As per my introduction post, i am new to the IP but try to learn.

I get it that seviced apartment is not a good deal.

I think I understand the gross to net process (although it dependa a lot to the loan associated with the purchase), but in order to achieve a 6.5% nett, we should target a 10%+ gross, assuming 30% avg cost to maintain. Seems to me that it is not too easy to get. I am shopping around on RE.com.au and Domain and did not see anything close to that with the figures given by REA (for example $350k investment with $400 rent)

Again, sorry for the basic question

 

[Shahin_Afarin]

The loan is one of the many variables but you need to look at the whole picture. For example the gross yield on units are great but many people don't know that the tenant pays for the water for houses (in NSW anyway) but you pay for water charges if its a unit. Also units carry strata and this amount varies incredibly. Then you need to look at the sinking fund, AGM Report, etc so there is a lot of research you need to do.

On a brighter note I think a) you are on the right track and b) you are much more informed than your first post.

Imagine if you spend a week here?!

Regards

Shahin

 

[Moon91]

Yes you are right, one week from now, I will be a different man

What about the 6.5% net, any lead?

Regards