For $20k and you get the small punt, why not? Not sure why everyone's analysing it like nuts
My steal of the week. $20,000 cairns unit which vendor paid $113,000 for rent $160pw.
- Thread starter Nathan
- Start date
Congrats Nathan $20k is cheap, i doubt you'd ever lose on a resale and you've possibly set a record for the lowest price in the building. Good luck and i hope it rents easily but the one for $140pw may likely get rented first if it's similar so you're waiting in line.. but even at $120pw you'd still be doing ok for $20k, more than 30% gross? Edit, just saw the 10% figure so more than 20% for outgoings?
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
I love games; Lets say $150pw and for every dollar less I receive I will match it personally and donate to charity?
Nathan.
ok so if it rents for $120pw then you'll donate $30 to charity ?
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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.
hahahahahaha * breathe in * aaaaaahhhhhhh hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaahhhhhhhhhhhhhhhhhhhhhhh
Have you got that in writing
your cognitive dissonance is truly astounding. you, yourself, were harping on about "cherry picking" come 2013/14/20 (whenever.....
) and yet you have a go at someone doing the same thing.i really look forward to you putting your money where your mouth is.
FTR, chances are you would pay cash for that price - only Nathan could clarify.
any return - 2, 5 or 10% is still a return and better than the cash sitting in the bank.
any return - 2, 5 or 10% is still a return and better than the cash sitting in the bank.
Not one of Nathan's best buy unfortunately...
1.service apartment
2. small, a lot of another unit in the complex has gone on sale for a low price as well
3. im guessing strata is extremely high for the size!
4. high vacancy and rent will be short term ( <3-6month)
5. Management control.
6. hard to sell
Reminds me of the student accommodation on top of Broadway- UniLodge
- City location, $150,000 --- rent for $340pw! --- but def a poor buy.
http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/NSW/Broadway/?adid=2009197977
Either way; without some risk you wont see return, and Nathan is still within his element and good at what he does; good luck with the purchase mate, hope it goes well
Regards
Michael
1.service apartment
2. small, a lot of another unit in the complex has gone on sale for a low price as well
3. im guessing strata is extremely high for the size!
4. high vacancy and rent will be short term ( <3-6month)
5. Management control.
6. hard to sell
Reminds me of the student accommodation on top of Broadway- UniLodge
- City location, $150,000 --- rent for $340pw! --- but def a poor buy.
http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/NSW/Broadway/?adid=2009197977
Either way; without some risk you wont see return, and Nathan is still within his element and good at what he does; good luck with the purchase mate, hope it goes well
Regards
Michael
Michael,
I knew a woman back at least 10 years ago who was trying to sell her unilodge 'broom closet' for $130,000. It apears not much growth since then.
Nathan,
Seen some units up in cairns in A current Affair last night. Right opposite a backpackers. It seems its 24 hr noisy partying up there with drunken nude pole dancing on the streets, projectile vomit competitions etc.. I wonder if you one is near there??
I knew a woman back at least 10 years ago who was trying to sell her unilodge 'broom closet' for $130,000. It apears not much growth since then.
Nathan,
Seen some units up in cairns in A current Affair last night. Right opposite a backpackers. It seems its 24 hr noisy partying up there with drunken nude pole dancing on the streets, projectile vomit competitions etc.. I wonder if you one is near there??
Poor lady, she probably bought it with cash as well
You make it sound bad? ahahh kidding...
Regards
Michael
It's bad if it's a bunch of drunken dudes doing it....
I don't suggest anyone follow me on buying here. Nor do I on any of those cheap regionals I buy, just sharing what I am up to. It does have its risks but I have minimised these. I have found with Cairns units when tenant moves in they stay long term. I will have this rented to a permanent tenant, not as a holiday let so vacancy minimised. I bought it cash, and not after anything really except the opportunity to sell it in the next few years for quadruple what I paid for it and it be covering itself till this day arrives.
with 20k, you bet you will see it at least double in few years time!I don't suggest anyone follow me on buying here. Nor do I on any of those cheap regionals I buy, just sharing what I am up to. It does have its risks but I have minimised these. I have found with Cairns units when tenant moves in they stay long term. I will have this rented to a permanent tenant, not as a holiday let so vacancy minimised. I bought it cash, and not after anything really except the opportunity to sell it in the next few years for quadruple what I paid for it and it be covering itself till this day arrives.
Not one of Nathan's best buy unfortunately...
1.service apartment
2. small, a lot of another unit in the complex has gone on sale for a low price as well
3. im guessing strata is extremely high for the size!
4. high vacancy and rent will be short term ( <3-6month)
5. Management control.
6. hard to sell
Reminds me of the student accommodation on top of Broadway- UniLodge
- City location, $150,000 --- rent for $340pw! --- but def a poor buy.
http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/NSW/Broadway/?adid=2009197977
Either way; without some risk you wont see return, and Nathan is still within his element and good at what he does; good luck with the purchase mate, hope it goes well
Regards
Michael
Good analysis. That said for so little money, why not? Can probably spend more on a birthday party for himself.
I probably wouldn't touch something like this specifically for some of the reasons you mentioned - but less those few issues I think it's okay.
I'm wondering when I can move in.
The thing about Nathan's $20k investment is this;
Most people happily pony up for a car worth this much to buy, and in 5 years it will have returned them zero, and be worth - at best - half what they paid for it.
I know what I'd rather throw my $20k at.
A quick google shows body corporate rates of over $3000 a year for studios. Based on $160pw rent, thats more than a third of your rental income eaten up.
Still for $20k, returning $5k, better than ubank
Gross Rent (less 4 weeks vacancy) - $7680
Strata - $3000
PM fees - $600
Insurace - $250
Repairs - $200
Rates - $600
Water - $200
Remaining - $2830
Have I missed anything?
Yep over 10% yield now thats a crap return and debt free!
So how many are you buying?
