Seen that come back and bite people in the bum.
Can be anywhere between 5% for new to 20% of gross rental of older properties.
Who has bought a GENUINE cashflow+ IP in the past 12 months under $300,000?
- Thread starter beachy
- Start date
Seen that come back and bite people in the bum.
Can be anywhere between 5% for new to 20% of gross rental of older properties.
True, though most of my non-investor mates, have simply heard they can lvr higher and have used their deposit to 95% finance more luxurious apartments.
End of the day, if you have no idea what your doing, all the helpful investment tools available are more like double edged swords.
Seen that come back and bite people in the bum.
Can be anywhere between 5% for new to 20% of gross rental of older properties.
Yes, I know, that's why I put the maintenance part in there. But there is always a bit of a buffer, as the actual loan will only be $229500 (90% LVR) and not $265000 like in the calculations.
Under contract now.
It's in Rockhampton outside the flooding zone.
The leases have been renewed, so as of August, it'll return $410 per week. Or 8.36% on the purchase price.
I'm pretty sure that part of Park Avenue is in the flood zone - I don't think it got flooded the last two times though.
Yes, sorry, I didn't mean to imply that all of Park Avenue is out of the flood zone, just that this property is.
Numbers wise, that's awesome for that part of Rockhampton. The place I've currently got under contract over in Berserker is at about 6.8-7% on yield - it's a house though rather than a duplex.
Here's another one on the other side of the river:
http://www.realestate.com.au/property-unitblock-qld-the+range-114192247
http://www.realestate.com.au/property-unitblock-qld-the+range-114192247
We bought Genuine cashflow+ IP
We bought a 4X2 for $255K in Langford WA. After Reno of $50K, Rent $500 per week.
80% loan ($168K )
$7000 purchage cost
Expenses:
$775 insurance
$1100 Council rates
$975 Water corp
$17150 interest
Total $20000
Income $500X50 = $25000
Difference +$5000
I do not know all calculations but I think..........it is cash flow positive.
Am I missing anything except repairs............
Thanks
We bought a 4X2 for $255K in Langford WA. After Reno of $50K, Rent $500 per week.
80% loan ($168K )
$7000 purchage cost
Expenses:
$775 insurance
$1100 Council rates
$975 Water corp
$17150 interest
Total $20000
Income $500X50 = $25000
Difference +$5000
I do not know all calculations but I think..........it is cash flow positive.
Am I missing anything except repairs............
Thanks
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Stamp duty?
Same issue as raised previously, interest should be determined on full purchase price plus costs to work out the cash flow.
Looking at the numbers, if an interest rate of 5% is assumed, then it's enough interest to pay for a loan of $343000, or $88000 over the purchase price. Easily enough to pay for all overheads.
How long ago was this??
Ah fair enough, didn't do the calculations just took the figure of 80% as that was stated.
