My steal of the week. $20,000 cairns unit which vendor paid $113,000 for rent $160pw.

how come it dropped in value so much so fast? why do you think they bothered to sell it for such little money... the rent would get them their $20k back in no time
 
Stress I am feeling.

These things are part of holiday resort, yet they rent private rentals. Strata is high, but at the figures purchased using cash it is 10%pa return on my cash purchased :)
 
What are the costs associated with this unit - body corp, rates, water, other levies, etc?

What is the vacancy rate?
 
Stress I am feeling.

These things are part of holiday resort, yet they rent private rentals. Strata is high, but at the figures purchased using cash it is 10%pa return on my cash purchased :)

Is that 10% net return? If it is, then the risk/return ratio is worth the play. Well done mate.
 
Stress I am feeling.

These things are part of holiday resort, yet they rent private rentals. Strata is high, but at the figures purchased using cash it is 10%pa return on my cash purchased

Looks like a newby/beginner purchase. High costs, and promised high rental return. What about vacancy rates.

$20000 for $160/wk rental income. Isn't the saying that if it looks to good to be true, it often is.

Bargain of the Century!!!!
The Council have advised the owner that this unit is zoned exactly the same as all the other units in the complex

Have you got that in writing:rolleyes:
 
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Looks like a newby/beginner purchase. High costs, and promised high rental return. What about vacancy rates.

$20000 for $160/wk rental income. Isn't the saying that if it looks to good to be true, it often is.



Have you got that in writing:rolleyes:

check out how many others in the complex for rent!!
 
check out how many others in the complex for rent!!

Why do you think they are selling so cheap Ed. And domain show 2 others listed for $160/wk in the complex.

I can rent a 2 bedroom unit in Woree Cairos for $160, or another one for $145/wk, and closer to the CBD. Why would I rent Nathan's studio for the same amount
To me it just looks like a newb error from Nathan, expecting a promised $160/wk for this "hotel" room.
Good luck I say, but it's not something I'd get my feet wet with. If you completing against cheaper larger rentals in the area, then I'd expect higher vacancy rates in the complex. (so his 10% return may be just dreaming).
Maybe long term he's on a winner??, but currently it looks like a dog.

4/39 Sondrio Street Woree 2br $160/wk

2/37 Sandown Close WOREE 2br Unit $145/wk
 
When I read this post, I thought wow! Can I buy one too? But when you see that there are a lot available for rent, and a huge amount of units for sale at low prices, even though they're more than $20,000, I wonder why. Also, if the vendor paid $113,000 and is prepared to sell for $20,000, he must know something.
 
I'm sure with Nathan's renovating experience he will ensure his unit stands out from the rest and for little outlay too.
 
I'm sure with Nathan's renovating experience he will ensure his unit stands out from the rest and for little outlay too.

As it's part of a resort complex, perhaps there are restrictions on renovations, in order to keep everything consistent. All the units on sale look the same.
 
Why do you think they are selling so cheap Ed. And domain show 2 others listed for $160/wk in the complex.

i assume that is a rhetorical question? the cairns market has been sick for a while. i assume someone just needed to get out at any price, but would have to do much more research to answer the question fully. the answer may be the continual warnings here not to buy anything under 50sqm, selling a studio in a depressed market in a depressed building would be difficult. it's in the wrong area for the tenant it would target. oh i could go on, but it would just be guessing.

rea.com.au has one listed in the complex at 140pw. if i was a potential tenant i would be offering 100pw, and someone would probably accept it.

I can rent a 2 bedroom unit in Woree Cairos for $160, or another one for $145/wk, and closer to the CBD. Why would I rent Nathan's studio for the same amount

because that's all you could get? oh hang on it's 2011; cairns.

To me it just looks like a newb error from Nathan, expecting a promised $160/wk for this "hotel" room.
Good luck I say, but it's not something I'd get my feet wet with. If you completing against cheaper larger rentals in the area, then I'd expect higher vacancy rates in the complex. (so his 10% return may be just dreaming).
Maybe long term he's on a winner??, but currently it looks like a dog.

perhaps, we all make mistakes. a very cheap mistake if it is one.

your observations are correct; atm. but the hotel and resi market in cairns are much more interconnected than other places. when there's a good season with lots of tourists, there are lots of workers pouring into the place. tourists might be forced out to woree and workers the same. that would be the perfect time to sell the dog. i suspect that is nathan's strategy, it certainly would be mine.

i have four in cairns (the 3 m area) and would not consider buying more now. but might if the world economy improves and the dollar drops. that may take a while.
 
Quiet a lot of questions.

WHilst its not for everyone, its a risk and I would never place a portfolio starter on this, it is a good little buy and hold with upsides.

It is in a block of a few hundred so you would need to expect to see a few for lease. The market is soft, but yet these things rent for $160pw easily. I will keep posted when rented.

It is something where I threw $20,000 at just because (it was actually my old XR6's funds which bought this).

It's is cheap, thats all it is the lowest sale ever, I am sure I could realist and get $45,000 on it out the door. Its just one I thought id do for kicks, and yes the market is crap but thats why I buy because there is no others buying. I want to buy below market value so it has a buffer in it. For no way would I pay $100,000 for this nor $50,000 and not even $40,000 but $20,000 is like the pair of shoes the Mrs needs to buy because they were too cheap. It does have its obvious flaws such as higher operating costs, part of resort and small unit etc.

It needs no renovation, only a kitchen sink installed.

I have a similar one in Sandown which I paid $85,500 for in earlier this year (2beds) and its rented for $200pw so the agent with $145pw needs to be shot for not looking after the landlords best interests.

This has risks like all investments and is not a blue chip property but its cheap, with below market purchase and cash-flow and is the cost of a second hand car and is in a desirable location so it does have upside also.

Nath.
 
As for the error..... Its no error its based on fundamentals I will get $160 for it. I was told less from the agent but I do my own due diligence to come up with the number of $160pw.

I love games; Lets say $150pw and for every dollar less I receive I will match it personally and donate to charity? :)

Its just apples for apples you will always have cheap things and expensive things in any market.....

I agree though that there is better properties for similar price or a little extra and cheaper in block for rent but its a matter of making the market. In the same block others are selling for much more, but why? Because those other agents have found a buyer for their stock, same as re agents will find a tenant for more...

Nathan.
 
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