Unit block maintenance?

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From: James Johnson


Hi everyone,
I'm thinking about getting a block of 8 units in Goulburn, NSW for about 280K. A bit of TLC (love those RE euphemisms) needed but rent is about $135/wk/unit.

The problem is I need to buy it with my parents ( I just don't have the income/cash) and they are worried about expenses.
Is there anyone out there in Forum-land who has any experience with this kind of investment and can give me some idea of what expenses I'd be looking at and what for.
Especially how much maintenance would cost...
I've factored it in for about 8K pa.
Thanks for any replies

Jimmy

 

[WebBoard]

Reply: 1
From: Sergey Golovin


James,
how is life in Goulburn?

Is Police Academy still there? They are not moving anywhere as yet?
It would be busy there for while with all security measures in place, lots of recruits will be on the streets queuing up in order to get in to the Academy. Good time to rent it all out.

In regards to your question – how much maintenance would cost, we need more figures such as borrowing cost, what sort of maintenance or renovation are you planing, etc.

Serge.

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi James

Hurdle Number is is usually LVR. nO lmi on these things and most lenders will go to 70 %. If youre good you can find an 80 % lend.

With a return like that youd need some serious expenses to cause grief.

tA

Rolf

 

[WebBoard]

Reply: 2.1
From: James Johnson


Thanks for replies Serge and Rolf,

Yes Sergey the Police Academy is still there and their enrollments are booming with the recent state policy of training more police as well as the recent security issues.
Rolf- I was shooting for a 75% LVR and about 20K renovations.
I'm trying to get a general idea of how much maintenance would be on this kind of property as I don't have much experience.
Cheers
Jimmy