Something not quite right with these numbers...

[norwoodman]

Let's play a little game. Here's are two 2/2/2 brick veneer units built some time in the 90s on the market somewhere in one of the major centres in Central Queensland asking $175000 each with some calculations for the cash flow and yield done by the selling agent. Each is currently tenanted at just under $240 a week. I see at least three issues with the numbers. Or is it just me?

(Might need a bit more detail?)

 

[starter]

Well the main thing is that the anual rent is double what it should be based on 240 per week.

 

[HotRod]

$6737 for BC?????

Pass.

What have they got, lifts, pools and gyms????

Advert levy, WTF is that?

Maintenance? Vacancy? LL Insurance?

 

[starter]

Are they selling a duplex or something? Why is rent listed as for "each".

 

[norwoodman]

Are they selling a duplex or something? Why is rent listed as for "each".

There's two being advertised, it is a duplex. That explains the first line of the calculation. Still, there seem to be some omissions (and a few weird additions).

 

[S.T]

Are they in one of those resort style complexes? With multiple pools, expansive gardens , sauna, spa, tennis court, gym etc etc.

 

[alexlee]

It's 175k EACH, right? Or 350k for two? In which case the net yield is more like 3.7%?

 

[norwoodman]

It's 175k EACH, right? Or 350k for two? In which case the net yield is more like 3.7%?

Yes, that's correct.

 

[norwoodman]

Are they in one of those resort style complexes? With multiple pools, expansive gardens , sauna, spa, tennis court, gym etc etc.

Nope, from I can gather none of those are part of the duplex.

 

[Terry_w]

There is no interest included.

$350,000 @ 6% = $21,000 pa.

That would make them severely negatively geared.

The yield would be 7% based on rent and purchase price. This sounds good, but the bc fees are very high which will break the deal. If it is just a duplex why is the BC so high?

 

[Nemo30]

I think the agent has just presumed the same person would buy both and has doubled everything.

The $6k body corporate etc would be for both.