Will this be a good deal??

Thanks Twobo, for such valuable and priceless info. Do you reckon though with rent at $190/wk for $149k will this be good. The current tenant seem stabile in the unit at the moment! What do you think?
 
Can't comment on that I'm afraid. You need to know what similar properties are selling for and renting for. Along with your expectations for future growth.
 
Do you reckon though with rent at $190/wk for $149k will this be good.

Just some purely general commentary from someone who knows nothing about the Cairns market; you’re asking a cash flow question which personally, I’d only be asking after being happy the capital outlay is competitive and the potential is good. Anyway, in terms of a cash flow answer, the BC is $35/w plus interest of say $9k annually (round numbers here, do your own maths), add rates, maintenance, insurance (landlord) and PM fees and my calcs give over $14k a year out. Based on the rent minus vacancy you’re going to see less than $10k a year in and it looks like little if any depreciation available.

Personally, over a $4k gross loss on a $150k property doesn’t stack up for me unless it’s a bargain buy with great potential. At that price range I’d be looking for a lower BC and some depreciation to make it all work.

Hope this helps :)
 
Hi,
Just be careful with that market up there.
Its tourism driven, with the GFC, the yen depreciating against the AUD, and appreciating against the USD, the jap tourists are going to honolulu instead of queensland.
Thus the unemployment in hat area could get higher at some stages,
 
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