Student accomodations Adelaide

[Dan_Lo]

hey guys,
I'm new in the property investment area and am currently looking to buy my first investment area in Adelaide.
My objectives are simple (but definitely not easy)
I want a property that will provide enough rental to cover my mortgage repayments as well as other other outgoings. As i'm moving back to Malaysia in a few months time, i'm expecting to earn no income in Australia and hence will not be getting any tax refund in the coming years.
I found this apartment here for student accommodation in Adelaide city
Asking price: 270000-280000
Rental: 540 per week
rates: 1369 per annum
strata: 6944 per annum
cleaning: 780 per annum
M'ment fees: 2100 per annum
insurance: 800
Now my question is, if i'm able to get a loan of 220000, at current interest rate of about 5.6% over 30 years, i'll only be repaying about 290 a week. After taking into account of all other outgoings, i will still be collecting about 20 dollars a week. Would anyone consider an investment like this? Is there a "catch" here, coz it sounds almost too good to be true to me, its like investing 50000 and 30 years later i own an apartment outright, without having to invest an additional cent.
i know interest rate might change but then rental will probably go up too. Please help me out here~~~~

 

[Brady]

hey guys,
I'm new in the property investment area and am currently looking to buy my first investment area in Adelaide.
My objectives are simple (but definitely not easy)
I want a property that will provide enough rental to cover my mortgage repayments as well as other other outgoings. As i'm moving back to Malaysia in a few months time, i'm expecting to earn no income in Australia and hence will not be getting any tax refund in the coming years.I found this apartment here for student accommodation in Adelaide city
Asking price: 270000-280000
Rental: 540 per week
rates: 1369 per annum
strata: 6944 per annum
cleaning: 780 per annum
M'ment fees: 2100 per annum
insurance: 800
Now my question is, if i'm able to get a loan of 220000, at current interest rate of about 5.6% over 30 years, i'll only be repaying about 290 a week. After taking into account of all other outgoings, i will still be collecting about 20 dollars a week. Would anyone consider an investment like this? Is there a "catch" here, coz it sounds almost too good to be true to me, its like investing 50000 and 30 years later i own an apartment outright, without having to invest an additional cent.
i know interest rate might change but then rental will probably go up too. Please help me out here~~~~

You may struggle to get finance as you must answer question of 'do you know of any changes to your financial situtation', your not going to have any income.
They could possibly look at your overseas income if you have a job lined up. Are your an australian citizen / PR?

Also student accom you can struggle with finance aswell.

 

[Dan_Lo]

You may struggle to get finance as you must answer question of 'do you know of any changes to your financial situtation', your not going to have any income.
They could possibly look at your overseas income if you have a job lined up. Are your an australian citizen / PR?

Also student accom you can struggle with finance aswell.

I see... Eventhough the rental is almost twice the mortgage repayment?

 

[Nigel Kibel]

Finance is always hard on things like student accommodation. The reason is that it is a poor investment. Generally they are small in size and will not get capital growth.

The other issue is that at least at present the number of foreign students coming into Australia seems to be reducing.

Personally stick to properties that offer capital growth. After all the only people who will buy these student properties are other investors.

 

[Aaron_C]

Forget it. Terrible investment. Finance aside - $7k strata fees for a little box in the middle of Adelaide is a rip off.

 

[Joeyv]

I see... Eventhough the rental is almost twice the mortgage repayment?

You will have to ask a bank lender this question

 

[firstmillion]

Where and self manage

Ho Dan_Lo,

i have rented my properties to student couples, less of management and they keep the house clean. I used to self manage though and these were stand alone houses with no strata fees and / or complaining neighbours .

Where exactly is the unit with $7,000 strata fees ?