No profit ??? Why should I buy?

Yesterday I went to look at a Studio here in Darlinghurst in Sydney.

I went with a friend of mine he is a Pawnbroker by trade, and has been here for over 40 years and very smart.
Turning up at a fixed time yes fixed by the lazy real estate agent we turned up at 1pm .
Now please please work this out by sums , he said $369,000 so myself and Moshe have the inkling they of course wanted 360k
I wasn't prepared to pay obviously that.

We were the only ones to turn up and the Filipino real estate agent said we are open to negotiation ok
My offer was 290 and it was refused , same with 310 but he had no communication with the owner !
I then had Moshe shouting" words this is disgusting absolutely to the real estate agent on hearing the price., waving our hands around, even pratically spitting on the carpet but he still won't budge in price.
The real estate agent even offered to manage the property for us and don't make us laugh I said to him you bloodsucker !of course I didn't call him a BS but he knew I knew he was trying to pull the wool over our eyes.

He then got offended when we started saying there is no stove to cook the price is disgusting !
How can you sell us this 24square centimetre shoebox at this disgusting price ?
! And he said we will have to terminate this meeting !

Please tell me this Ok if I paid 350k then stamp duty approx 11,000
strata fees $1100 quarter , Council Rates approx $250 quarter
Water rates 180 quarter then a rental return of $350 weekly according to the agent what am I getting in profit from this venture ???
I would have to pay a stove to be put in as well.
Am I should I be hoping for a capital gain?
What is your theory ?
 
You want to see the apartment? You think I'm a troll I live here in the City my friend .
studios are selling 350k plus and some 450 k plus here in Darlinghurst area so please before you insist on a certain rule don't offer to have your opinion which has no factual basis to the studios here.
Just stick to your area of Lake Munmoron which you refuse to develop and leave it with wet puddles where there are no footpaths but please don't come to us in the future and beg for development in Queens Road ! We won't be there !

I simply asked a opinion of financial castings once again the outgoings on this compared to say a house at Lake Haven where there are no strata fees !!
Now you see what you have done because I have forgotten the financial cost.ok I have found it again.

Once again I will put the castings up at $1100 strata fees plus water $180 plus council rates $250 and a rental return of $1400 a month.
Obviously a house maybe be better on the Central Coast maybe eve n Lake Munmoron maybe a better return?
Once again before I was rudely interrupted I will ask am I seeking a capital gain by investing in this property? After these outgoings I am stuck with approx $900 a month not even taking away tax or real estate fees !
 
I cannot get sensible answers it seems then don't reply to this thread.
My question is on investing in studios and my concern of high strata fees .

A return of $350 weekly , but strata fees of $1100! Per quarter !
Of course we can negative gear this?
I have cash of 400,000 not a loan.
I have to think about this , say buying a house up in Lake Haven/central coast for similar price and similar rental return and no strata fees !!
Can we stop the bad answers please ! I am after an opinion that maybe this type of investment I should get a loan for and neg gear rather than spend my 400k which I have saved up?
 
Rent and strata fees are what they are - what do you want to do about it?
Move to another place with either higher rent or lower strata, or a combination of both?
 
You seem to be under the delusion that vendors/agents must sell to you no matter what.

If I was an agent and you and your pawnbroker mate were ranting and raving and waving your arms around, I would just write you off as a dick and leave.
 
I'm asking opinion on if this is 1/ overpriced because rental return is not much after strata fees !
2/ is a better option a house say on the Central Coast... Certainly not Lake Munmoron where we were constantly state of being stared at by locals.
3/ I am concerned living in this area of higher strata fees and please let me say it .. Special Leviys .. Of course ok I understand but I'm not negatively gearing this property so I'm asking for opinions and if you cannot be nice then please do not reply.

Is my goal with a studio profit or capital gain? I cannot profit unless I put the rent up to maybe $400 a week but then special levy may come in, I have cash for this but I maybe better to negative gear ?
 
I think you are better off asking questions in the other forum you mentioned.
You won't get any answers here. You should stop wasting your time and everyone elses.... unless of course its for comedic value... then continue. :D
 
There are a million BAD investments out there. You don't have to like them or buy them.

Studio apartments were popular with short term executive furnished lets which got a much higher rental return but they are a lot of work and much higher PM fees.

A REA will often have instructions from their Vendor to not even pass on ridiculous offers which yours was. If you had started at $340k they probably would have written it up but even then they would have counter offered higher.

Shouting at a REA will get your nowhere
 
I'm trying to make sense of the post here

  1. There is a Studio in DarlingHurst
  2. You visit the place with your smart Pawnbroker friend named Moshe
  3. The lazy real estate agent is a Filipino (why does this matter)
  4. The unit is listed for $360K. Agent said they want $369K.
  5. You offer $290K (19.4% lower than listing) and get rejected
  6. You offer $310K and get rejected again
  7. Your Moshe then being rude, dirtying the place by spitting on the carpet
  8. Real Estate agent (Who I assume is very patient at this point) says that they can help you manage the property (but price won't budge)
  9. Then you and your friend became even ruder and call him names and being aggresive
  10. The real estate agent got offended (rightfully) and terminate the meeting.

That sounds very reasonable of an agent to me


Please tell me this Ok if I paid 350k then stamp duty approx 11,000
strata fees $1100 quarter , Council Rates approx $250 quarter
Water rates 180 quarter then a rental return of $350 weekly according to the agent what am I getting in profit from this venture ???
I would have to pay a stove to be put in as well.
Am I should I be hoping for a capital gain?
What is your theory ?


Unreasonable price of a property doesn't give you the right to be rude and condescending. Agent is there to get the best price for the seller, he doesn't need to appease you.

So the question is, do you want the unit at the mentioned price? If you don't want or think that it won't bring you profit, then don't buy.

Maybe other forums will not call you troll :)
 
I'm asking opinion on if this is 1/ overpriced because rental return is not much after strata fees !
2/ is a better option a house say on the Central Coast... Certainly not Lake Munmoron though !!!

BUT.....I thought Lake Munmorah was a GOLDMINE!!!

Then you said you were going to Penrith, but I'd be careful out there since it's near Mt Druitt & you'd have a death wish to buy there.:rolleyes:

Now you are looking in the City?:confused:

Seriously, you need to look at yourself and make a decision on where you want to buy.
 
You don't buy in the City in a place like Darlinghurst for rental yield. Rent of $350pw for a purchase price of $360 something K sounds about right.

You are not going to get anywhere making low ball offers in a sellers market that Sydney is in right now. $1100pq sounds about average for strata too. Insurance premium increases have contributed somewhat to that, as has the requirement for BCs to have a 10 yr plan on how to spend the sinking fund monies.
 
Ultimately the quality of the answers you receive is a function of the question you ask.

As Phiber stated the costs involved with investing are relative to the property you are looking at. If you are looking at apartments in a block with lifts and pools it costs a lot to maintain them, hence the high strata costs.

If you are buying for an investment you have done the right thing and found out the costs involved prior to buying, and if the numbers don't stack up for an investment then its probably not the right property.

Similarly if the cost of the property is not what you want to pay then you have to just walk away, there are plenty more out there for sale.

Regarding your initial post, the last paragraph was sufficient to ask your question, we don't need all the emotion attached to it, and certainly if you have that much emotion to specific properties it will be hard for you to value them from an investment point of view.
 
1/ overpriced because rental return is not much after strata fees !
2/ is a better option a house say on the Central Coast... Certainly not Lake Munmoron where we were constantly state of being stared at by locals.
3/ I am concerned living in this area of higher strata fees

Is my goal with a studio profit or capital gain? I cannot profit unless I put the rent up to maybe $400 a week but then special levy may come in, I have cash for this but I maybe better to negative gear ?

1. My understanding is rental return and sale price often do not have a correlation (unless in commercial property). Areas that are desirable to live in because of many reasons such as (vibe/atmosphere,location, views etc) may often have LOW rental return compared to sale price. It is not overpriced BECAUSE rental return is low. It could be overpriced for other reasons, you won't know until you compare to other similar studio apartments in the area.

2. No-one can say where it is better to buy. For everyone that answer will be different based on their circumstances.

3. High strata fees will only get higher. That is how it works and needs to be factored into your GOALS and PLANS.

It is up to you what your GOAL is. No-one will be able to answer for you if it is CG or cashflow. You may be able to achieve one or the other, or both if you have a PLAN for how this unit fits in with your overall strategy.

A special levy will come in if the building needs work done that hasn't been budgeted for, or if the sinking fund isn't sufficient. Have you done a strata report to see if any work is coming up? If any work has recently been done?

For example, the unit I live has had a special levy 2 years in a row (small one) to replace all of the wooden windows. After this, there will not be a special levy unless there is an emergency because all the big things that need to be done to this block would have been completed.
 
Yesterday I went to look at a Studio here in Darlinghurst in Sydney.

I went with a friend of mine he is a Pawnbroker by trade, and has been here for over 40 years and very smart.
Turning up at a fixed time yes fixed by the lazy real estate agent we turned up at 1pm .
Now please please work this out by sums , he said $369,000 so myself and Moshe have the inkling they of course wanted 360k
I wasn't prepared to pay obviously that.

We were the only ones to turn up and the Filipino real estate agent said we are open to negotiation ok
My offer was 290 and it was refused , same with 310 but he had no communication with the owner !
I then had Moshe shouting" words this is disgusting absolutely to the real estate agent on hearing the price., waving our hands around, even pratically spitting on the carpet but he still won't budge in price.
The real estate agent even offered to manage the property for us and don't make us laugh I said to him you bloodsucker !of course I didn't call him a BS but he knew I knew he was trying to pull the wool over our eyes.

He then got offended when we started saying there is no stove to cook the price is disgusting !
How can you sell us this 24square centimetre shoebox at this disgusting price ?
! And he said we will have to terminate this meeting !

Please tell me this Ok if I paid 350k then stamp duty approx 11,000
strata fees $1100 quarter , Council Rates approx $250 quarter
Water rates 180 quarter then a rental return of $350 weekly according to the agent what am I getting in profit from this venture ???
I would have to pay a stove to be put in as well.
Am I should I be hoping for a capital gain?
What is your theory ?

Starofdavid you should be renamed "starofsomersoft' you are the best entertainment on this site, your posts are awesome, keep up the good work.
 
Back
Top