I am selling my DHA property

[MJD]

Hi Everyone
I need to sell one of my IP in Canberra with 7 years lease remaining with DHA. please send me a message if you are interested
thanks
Mjd

 

[geoffw]

Mjd

You will need to supply more details of the property if you want this post to stay
Suburb
Rent
Property type
Land area
Asking price range

 

[MJD]

Mjd

You will need to supply more details of the property if you want this post to stay
Suburb
Rent
Property type
Land area
Asking price range

thanks Geoff
the property is in Harrison, 4 beds house built in 2006 on 510sqm block.
rent is $575 pw. I would ask for price from $575,000 to 590,000
thanks
MJD

 

[devank]

rent is $575 pw. I would ask for price from $575,000 to 590,000

I don't know anything about the property itself but you want someone here to buy 5% yielding property with 16.5% management fees and few years of lost depreciation benefits??

 

[MJD]

I don't know anything about the property itself but you want someone here to buy 5% yielding property with 16.5% management fees and few years of lost depreciation benefits??

Hi devank
I think that is typical yield for canberra , is it not?
cheers

 

[luckyone]

Nope, I'm getting 7% for each of mine.

 

[vaughan]

thanks Geoff
the property is in Harrison, 4 beds house built in 2006 on 510sqm block.
rent is $575 pw. I would ask for price from $575,000 to 590,000
thanks
MJD

What did you pay for it?

 

[geoffw]

Nope, I'm getting 7% for each of mine.

7% is certainly possible but it's not typical. I'd suspect 5% is closer to an average yield.

 

[devank]

Hi devank
I think that is typical yield for canberra , is it not?
cheers

I don't know anything about Canberra but getting 5% yield and then paying 16.5% PM fees on it isn't that flashy.

 

[Peter_Tersteeg]

I don't know anything about Canberra but getting 5% yield and then paying 16.5% PM fees on it isn't that flashy.

16.5% is certainly high, but doesn't the DHA pay for maintenance?

 

[MJD]

16.5% is certainly high, but doesn't the DHA pay for maintenance?

yes, DHA pay for maintenance. Since I bought the house in late 2007, all I paid is management fee, I 've seen the house only once before the settlement . Last year the bank valued at $580K for refinance purpose. I did not follow up Canberra since but do need to sell now . I am looking to sell at a fair market value , may be this is not for real bargain hunter.
cheers
Mjd

 

[Rixter]

I am looking to sell at a fair market value , may be this is not for real bargain hunter.

Are you really sure you need to sell off the asset? If you need money for something in a hurry have you thought about borrowing against it instead?

 

[MJD]

Are you really sure you need to sell off the asset? If you need money for something in a hurry have you thought about borrowing against it instead?

Rixter,
I never sell of any of my asset before, this is the first time I need to sell to release some equity as my serviceability already hit the wall,

 

[geoffw]

16.5% is certainly high, but doesn't the DHA pay for maintenance?

DHA does pay for maintenance. Plus there's seven years of guaranteed tenants, no relet fees, advertising, and none of the incidentals which some PMs impose.

DHA has been discussed many times. My first IP was DHA and it was excellent as a first property. It was really a set and forget for the term of the lease.

 

[Shahin_Afarin]

Bank servicing or your personal servicing?

Regards

Shahin

 

[Peter_Tersteeg]

DHA does pay for maintenance. Plus there's seven years of guaranteed tenants, no relet fees, advertising, and none of the incidentals which some PMs impose.

Which is exactly my point. When you consider these costs are wrapped up in the 16.5% management fee, it's not really very high. It might even be a bargain.

 

[devank]

16.5% is certainly high, but doesn't the DHA pay for maintenance?

They pay for maintenance but what major maintenance are there in a brand new property?
Owners still need to pay expenses such as termite control, council rates and insurances.

 

[Rixter]

The difference between DHA's 16.5% PM fee & the usual 8.5% there about PM fee found on the open market is really coming back to the LL via the replacement floor covering & painting costs at the end of DHA lease.

 

[MJD]

Bank servicing or your personal servicing?

Regards

Shahin

Shahin
I mean Bank servicing ,
thanks

 

[S1mon]

not an ideal time to be a 'forced' seller in the Canberra market :/ not sure about getting fair value either :/ good luck tho