Positive Gearing in Perth Units

[MaxClarke]

Hi Guys

I am out in WA checking out some IP deals and have noticed that Perth is very close to positive gearing in:

-units in the CBD 3bed 2 bath 550 - 650K
- these look to rent at $700+ Per week
(based on 90% lend)

Any insites into the risks in the WA marketplace. (it all looks pretty good to me)

 

[sanj]

Hi Guys

I am out in WA checking out some IP deals and have noticed that Perth is very close to positive gearing in:

-units in the CBD 3bed 2 bath 550 - 650K
- these look to rent at $700+ Per week
(based on 90% lend)

Any insites into the risks in the WA marketplace. (it all looks pretty good to me)

that rent is actually on the low side for an inner city apartment imo

youd be better off getting a 1 or 2 bed place and renting out fully furnished and equipped if yield is what youre chasing

it is pretty common for 1 bed to get $600/week, the catch is to try and get in a building with low enough strata fees to make it all worthwhile

rents for fully furnished and equipped modern inner city places have jumped by between 25-40% in the last 12-18 months and that is conservative, mainly fuelled by mining boom as well as a lack of hotel rooms. quite a few companies now lease apartments and have their staff stay there when in perth due to severe shortage of CBD hotel rooms midweek

 

[MaxClarke]

Thanks very much for your guidance / input Sanj - yes I did notice how hard it was to get a hotel room!!!

and yes Yield is what I am after

 

[sanj]

Thanks very much for your guidance / input Sanj - yes I did notice how hard it was to get a hotel room!!!

and yes Yield is what I am after

good luck, hope it all goes well

what made you look in WA btw?

 

[redwing]

A Sydneysider looking in Perth for yield...don't tell Nathan

 

[Rolf Latham]

Hi Guys

I am out in WA checking out some IP deals and have noticed that Perth is very close to positive gearing in:

-units in the CBD 3bed 2 bath 550 - 650K
- these look to rent at $700+ Per week
(based on 90% lend)

Any insites into the risks in the WA marketplace. (it all looks pretty good to me)

the 90 % bit could be a struggle with some lenders

t
arolf

 

[MaxClarke]

good luck, hope it all goes well

what made you look in WA btw?

I am over here for work - everyone is taking about the FIFO workers - Rental shortages and price drops off the peak in 06 - 07

 

[recruit2]

Bloody Perth and WA! The place is crazy... That's awesome...

 

[Edmond Dantes]

Hi Guys

I am out in WA checking out some IP deals and have noticed that Perth is very close to positive gearing in:

-units in the CBD 3bed 2 bath 550 - 650K
- these look to rent at $700+ Per week
(based on 90% lend)

Any insites into the risks in the WA marketplace. (it all looks pretty good to me)

I bet that if you include strata fees, PM's, rates, etc... it's well into negative land.