Hi all
I just want to get the perspective on you experienced investors.
I just came back from inspecting a single bedroom apartment right in the city
http://www.realestate.com.au/property-apartment-wa-perth-116010415
Cost is $263k
Short term stay only (3 months max) or owner can stay indefinately.
Property can be managed by seller (executive apartments) who service those requiring short term stays.
They project occupancy rates of 78% to 91%, with higher occupancy much more favourable in that area (so they say).
Expected rental income per week $1155
Outgoings
20.9% Property management
Fees (advertisings, linen internet) - $3500 p/a
Rates (water, strata, coucil) - $4000 p/a
Owner to pay services bills (gas, elec) - ~$1500 p/a (is this a fair amount?)
I.e.
Incoming (@78% occupancy) - $46,846.80 p/a
Management - $9790.98 p/a
Fees- $9000 p/a
Leftover - 28055.8 p /a
Interest only loan ($275k) @ 6% - $16500 p/a
Profit - $11,555 p/a
Too good to be true, what are the catches with these besides higher vacancy rates, lower weekly rental yields.
The place did need a little bit of work, at least 20-30k to renovate.
Cheers,
AV
I just want to get the perspective on you experienced investors.
I just came back from inspecting a single bedroom apartment right in the city
http://www.realestate.com.au/property-apartment-wa-perth-116010415
Cost is $263k
Short term stay only (3 months max) or owner can stay indefinately.
Property can be managed by seller (executive apartments) who service those requiring short term stays.
They project occupancy rates of 78% to 91%, with higher occupancy much more favourable in that area (so they say).
Expected rental income per week $1155
Outgoings
20.9% Property management
Fees (advertisings, linen internet) - $3500 p/a
Rates (water, strata, coucil) - $4000 p/a
Owner to pay services bills (gas, elec) - ~$1500 p/a (is this a fair amount?)
I.e.
Incoming (@78% occupancy) - $46,846.80 p/a
Management - $9790.98 p/a
Fees- $9000 p/a
Leftover - 28055.8 p /a
Interest only loan ($275k) @ 6% - $16500 p/a
Profit - $11,555 p/a
Too good to be true, what are the catches with these besides higher vacancy rates, lower weekly rental yields.
The place did need a little bit of work, at least 20-30k to renovate.
Cheers,
AV