Hi all,
I think I have found a property in the outskirts of Melbourne that has the prospects of being a positively geared property - straight off the bat.
To make things even more interesting... I've done all my figures based on borrowing 105% of the purchase price.
Without going into the specifics of the lending side of things, here's the details of the property.
I'm interested to hear people's thoughts on the topic as I haven't been able to find something like this for the past 3 years at least.
3-bedroom home, brick veneer, 14 years old, stumps, large block, good views, and well maintained (sorry for summarising, but I don't have the time to give specifics right now as I'm at work)
Similar homes (age, condition etc..) in the area with similar criteria and location are selling for $180,000 - $220,000
*Note that my estimate figures are rounded off. My actual figures are on my home PC*
Purchase price $156,000 (Asking price was $166)
Stamp duty $5,850
Cosmetic renovation costs $4,500
Other costs $2,500
APPROX TOTAL PURCHASE PRICE $168,850
Weekly loan repayments (Interest only) $236.55
*Based on 7.3% over 30 years*
I work for a major bank, so my rates will be slightly lower at the moment, and there are no fees involved, so the mortgage repayments are slightly higher than what I'll actually be paying, but better to be safe with estimate figures.
Another perk is that this town currently has 3 rental vacancies, and one of the 3 listed has only been up for 2 days.
I've also reviewed the amount of homes for sale and it's very modest with only 20 - 30 at any given time over the last month.
These figures are even better when I say that this town has a population of over 40,000 people and according to a recent census, over 26% of the population are renting! Can it get any better!!??
So basically I'd need at least $240 rental p/week to make this a positive geard property (excluding rates costs, water etc..)
And looking at the current homes available for rent, I'm quite sure I'll be able to get at least that.
Would any of you jump at this kind of investment (assuming that the home is structurly sound, no known problems with surrounding homes, neighbours, or any other specifics that are included in a due diligence report)?
Cheers,
Rick
I think I have found a property in the outskirts of Melbourne that has the prospects of being a positively geared property - straight off the bat.
To make things even more interesting... I've done all my figures based on borrowing 105% of the purchase price.
Without going into the specifics of the lending side of things, here's the details of the property.
I'm interested to hear people's thoughts on the topic as I haven't been able to find something like this for the past 3 years at least.
3-bedroom home, brick veneer, 14 years old, stumps, large block, good views, and well maintained (sorry for summarising, but I don't have the time to give specifics right now as I'm at work)
Similar homes (age, condition etc..) in the area with similar criteria and location are selling for $180,000 - $220,000
*Note that my estimate figures are rounded off. My actual figures are on my home PC*
Purchase price $156,000 (Asking price was $166)
Stamp duty $5,850
Cosmetic renovation costs $4,500
Other costs $2,500
APPROX TOTAL PURCHASE PRICE $168,850
Weekly loan repayments (Interest only) $236.55
*Based on 7.3% over 30 years*
I work for a major bank, so my rates will be slightly lower at the moment, and there are no fees involved, so the mortgage repayments are slightly higher than what I'll actually be paying, but better to be safe with estimate figures.
Another perk is that this town currently has 3 rental vacancies, and one of the 3 listed has only been up for 2 days.
I've also reviewed the amount of homes for sale and it's very modest with only 20 - 30 at any given time over the last month.
These figures are even better when I say that this town has a population of over 40,000 people and according to a recent census, over 26% of the population are renting! Can it get any better!!??
So basically I'd need at least $240 rental p/week to make this a positive geard property (excluding rates costs, water etc..)
And looking at the current homes available for rent, I'm quite sure I'll be able to get at least that.
Would any of you jump at this kind of investment (assuming that the home is structurly sound, no known problems with surrounding homes, neighbours, or any other specifics that are included in a due diligence report)?
Cheers,
Rick