Hi all
We just purchased a pair of duplex units at Trinity Beach in the north of Cairns. Here's the deal :
Purchase : $245,000
Current rent return : $300 per week ($150 per unit)
Land size : 960 sq metres
Position : Excellent rental territory near shops and schools
FORS
Big block, dwellings well positioned means we may be able to add a further unit in future
Group titled, with a party wall in centre, meaning we could strata title if necessary (I'm told)
Independent appraisal suggests we can easily increase returns to $340 per week ($170 per unit) as they are under-rented
Addition of an ig pool (given the area, climate and rental market demands) will give $400 per week
Building and pest showed all in reasonable condition with maybe $1,000 to spend
AGAINST
The cashflow isn't what I had originally worked out (I'm new at all this analytical stuff and I buggared it up
)
Built prior to 1985 so no special building allowance in depreciation
Minor issues in building inspection report
UNKNOWN
They are on a small body corporate scheme with $1500 in the sinking fund and $950 contributions per annum - the agent told me this was to get better tax advantage - sounds like a hassle to me - anyone got experience doing the body corporate thing for a property that is entirely yours ?
I don't know if the fact they're a duplex provides any better benefit for the future - anyone like or dislike duplexes for any reason ?
SO
Any thoughts appreciated. Feel free to mock, I believe it will toughen me up
Cheers (and thanks) !
TryHard
We just purchased a pair of duplex units at Trinity Beach in the north of Cairns. Here's the deal :
Purchase : $245,000
Current rent return : $300 per week ($150 per unit)
Land size : 960 sq metres
Position : Excellent rental territory near shops and schools
FORS
Big block, dwellings well positioned means we may be able to add a further unit in future
Group titled, with a party wall in centre, meaning we could strata title if necessary (I'm told)
Independent appraisal suggests we can easily increase returns to $340 per week ($170 per unit) as they are under-rented
Addition of an ig pool (given the area, climate and rental market demands) will give $400 per week
Building and pest showed all in reasonable condition with maybe $1,000 to spend
AGAINST
The cashflow isn't what I had originally worked out (I'm new at all this analytical stuff and I buggared it up
) Built prior to 1985 so no special building allowance in depreciation
Minor issues in building inspection report
UNKNOWN
They are on a small body corporate scheme with $1500 in the sinking fund and $950 contributions per annum - the agent told me this was to get better tax advantage - sounds like a hassle to me - anyone got experience doing the body corporate thing for a property that is entirely yours ?
I don't know if the fact they're a duplex provides any better benefit for the future - anyone like or dislike duplexes for any reason ?
SO
Any thoughts appreciated. Feel free to mock, I believe it will toughen me up
Cheers (and thanks) !
TryHard