Therefore, I am pretty convinced to go commercial where tenant pays all outgoings. I can't fix hot water towers or toilets. I don't know any tradies. That would mean that I would be paying out every time the PM calls me with any issue. I would have lost control of the investment with resi IP.
Who has bought a GENUINE cashflow+ IP in the past 12 months under $300,000?
- Thread starter beachy
- Start date
Therefore, I am pretty convinced to go commercial where tenant pays all outgoings. I can't fix hot water towers or toilets. I don't know any tradies. That would mean that I would be paying out every time the PM calls me with any issue. I would have lost control of the investment with resi IP.
That's what a property manager is for.
It's horses for courses. Many people can't afford the big price tags on much of the commercial property, not the extended vacancy which may occur. Resi has a much more uncertain capital gain, but when they have it, it can be very nice indeed.
I think this one was recently purchased by a developer? perhaps didn't tick development boxes.
Good return and nice block!!
I know that it's owned by a company, not sure if they're developers or not. Hopefully it won't look much worse in person than in the photos.
What is a "yield play"? Never heard that term before ...A yield play by a developer...
Righto
They're basically just questioning whether a developer really bought the property for the yield as the real estate agent stated. It's pretty out of character for a developer and given the short amount of time that the developer held the property before putting it back on the market, I'd be inclined to agree.
I'm having a valuation done tomorrow and I'm flying up on Wednesday to be onsite for the B&P inspection. Hoping it'll all go smoothly.
As I said, I'm flying up Wednesday to have a look, but I currently have it under contract.
Bump...........
QLD unit - settles next week.
$115,000.00 Purchase Price
$12,480.00 Gross Income
$1,185.60 Prop management @ 9.5% / tenant in place
$11,294.40 Total Income
$5,635.00 4.9% variable loan on PP
$2,200.00 Rates+water
$2,750.00 BC
$301.00 LL insurance
$10,886.00 Total Outgoings
$408.40 Cashflow on 100% PP
$1,682.40 Cashflow on my actual $89K lend
First purchase interstate & away from Melbourne. I wanted to see what I can learn from this buy and probably look at one more in the same area.
$115,000.00 Purchase Price
$12,480.00 Gross Income
$1,185.60 Prop management @ 9.5% / tenant in place
$11,294.40 Total Income
$5,635.00 4.9% variable loan on PP
$2,200.00 Rates+water
$2,750.00 BC
$301.00 LL insurance
$10,886.00 Total Outgoings
$408.40 Cashflow on 100% PP
$1,682.40 Cashflow on my actual $89K lend
First purchase interstate & away from Melbourne. I wanted to see what I can learn from this buy and probably look at one more in the same area.
Another metro SA property.
Purchase Price: $157,500
Loan Amount (always calc'd at 105%): $165,375
Income:
Rent: $13,780
Outgoings:
Interest: $8,086 p.a
Rates: $1,000
Property Management (7.7%): $1,060
Insurance: $700
Cash Flow Positive: $2,934 from year 1.
Also has depreciation + large renovation potential.
I'll be spending 10k renovating this property, will contract all the work. Re-val will be circa $220,000.
Purchase Price: $157,500
Loan Amount (always calc'd at 105%): $165,375
Income:
Rent: $13,780
Outgoings:
Interest: $8,086 p.a
Rates: $1,000
Property Management (7.7%): $1,060
Insurance: $700
Cash Flow Positive: $2,934 from year 1.
Also has depreciation + large renovation potential.
I'll be spending 10k renovating this property, will contract all the work. Re-val will be circa $220,000.
