After my post of of below thread.
http://somersoft.com/forums/showthread.php?t=106768
I got few txt/pm asking how we can find positive geared property.
I believe in Capital Growth and happy to take $$$$$$ chunk in one go then getting paid on drip ($10-$50 per week)
So rather than replying individually, I thought I ll post another simple hack here
(Considering Sydney metro market)
? Buy a block of land in new land release in outskirts of Sydney
? Spend around $300K to grab a corner block (550-600 sq meter)
? Build 2 story home facing one side, and double garage facing other side of the street
? Estimated construction cost $450k (house) + $50k (garage later to be converted in to GF)
? Total spent $800k @ 6% (interstate+ PMfees+ other cost) = $48,000 $923 p.w
? Use CDC if possible for planning approval , if not go thru council with Home and garage application only
? While building or prior, ask builder to run water, gutter, electricity to garage (in view with converting GF
? Once you get OC, convert garage in to Granny flat (apply to council and STCA)
? Grab $550 Rent for main house, $350 for GF = total rent collected $900
? You are out of pocket by at best $923-$900 = $23 p.w
? Claim depreciation + tax benefit (if available)
Above are rough calculation, please carry out your own DD and area research.
Cheap regional so called positive geared properties aren?t exactly what it looks , they have
Higher maintenance cost (due to being old)
Higher council rates
Higher vacancy rates (at times)
Low capital growth
Higher PM cost
I rather prefer NEWER property in Sydney metro area then having one in regional area.
p.s there are other strategies like NRAS, etc. but they are too complicated for me ..so I don?t know much about it.
I have helped a friend and two SS lurkers to execute above in Ponds area and it really worked out well with recent double digit growth.
CG+ Cash flow = Happy Investors!
http://somersoft.com/forums/showthread.php?t=106768
I got few txt/pm asking how we can find positive geared property.
I believe in Capital Growth and happy to take $$$$$$ chunk in one go then getting paid on drip ($10-$50 per week)
So rather than replying individually, I thought I ll post another simple hack here
(Considering Sydney metro market)
? Buy a block of land in new land release in outskirts of Sydney
? Spend around $300K to grab a corner block (550-600 sq meter)
? Build 2 story home facing one side, and double garage facing other side of the street
? Estimated construction cost $450k (house) + $50k (garage later to be converted in to GF)
? Total spent $800k @ 6% (interstate+ PMfees+ other cost) = $48,000 $923 p.w
? Use CDC if possible for planning approval , if not go thru council with Home and garage application only
? While building or prior, ask builder to run water, gutter, electricity to garage (in view with converting GF
? Once you get OC, convert garage in to Granny flat (apply to council and STCA)
? Grab $550 Rent for main house, $350 for GF = total rent collected $900
? You are out of pocket by at best $923-$900 = $23 p.w
? Claim depreciation + tax benefit (if available)
Above are rough calculation, please carry out your own DD and area research.
Cheap regional so called positive geared properties aren?t exactly what it looks , they have
Higher maintenance cost (due to being old)
Higher council rates
Higher vacancy rates (at times)
Low capital growth
Higher PM cost
I rather prefer NEWER property in Sydney metro area then having one in regional area.
p.s there are other strategies like NRAS, etc. but they are too complicated for me ..so I don?t know much about it.
I have helped a friend and two SS lurkers to execute above in Ponds area and it really worked out well with recent double digit growth.
CG+ Cash flow = Happy Investors!