I may have the opportunity of buying a 1 bed unit for about $140,000 with the weekly rent set at $180 per week and a tenant already in place.
With a ten percent deposit and stamp duty etc. it's going to cost me around $20,000 in upfront costs. The mortgage would then be about $150 per week at 6% interest only and the extra $30 from the tenant could go to pay the body corp.
Another property which was slightly renovated just sold in the same block for about $160,000.
This would be my first investment and it sounds like it won't cost me anything to hold onto it but I'm just unsure if this is going to have good capital growth as there are loads of units in the area and also this unit doesn't have a car space.
What do you think? Should I buy it or just look for something with more potential for growth? Any thoughts would be greatly appreciated. Thanks.
With a ten percent deposit and stamp duty etc. it's going to cost me around $20,000 in upfront costs. The mortgage would then be about $150 per week at 6% interest only and the extra $30 from the tenant could go to pay the body corp.
Another property which was slightly renovated just sold in the same block for about $160,000.
This would be my first investment and it sounds like it won't cost me anything to hold onto it but I'm just unsure if this is going to have good capital growth as there are loads of units in the area and also this unit doesn't have a car space.
What do you think? Should I buy it or just look for something with more potential for growth? Any thoughts would be greatly appreciated. Thanks.