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

[Intrinsic_Value]

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.

Nathan keep up the postings, they are very informative, a great inspiration to many.

On any public forum there will always be a vocal minority that chooses to just nit pick, yet they really come up with sustainable investment ideas of their own.

You are truely a quality member of this forum.

 

[Intrinsic_Value]

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.

spoken like a businessman

thats the difference boys and girls, on one hand we have people looking at this asset from a risk/return point of view, on the other people who just focus on the negatives without considering the price paid for it. We are not talking A1 quality property here, but neither is the price.

 

[Intrinsic_Value]

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?

the biggest expense is the strata, i wonder how much 'fat' is in those fees.
What are the related party transactions (eg contractors doing the gardening, servicing the pools etc).

Wouldnt be worth it with just one, but if one obtained several units and joined with like minded investors, one could start to agitate, remove the body corporate managers (depending on underlying contracts).

 

[BV]

Hi Nathan
Congratulations mate

Not one of Nathan's best buy unfortunately...

Michael
It doesn't need to be his best buy.
For Nathan its all about instant equity and cash flow and he doesn't need to sell it, he'll pull the equity out and the rent will service the loan

 

[Risky Business]

Congrats mate.

If it doesn't rent for $150, I'll accept the charity money. Keep us posted about the next one mate.

 

[Young Gun]

Motorway project between Forest Gardens and Ray Jones Drive begins soon. Calculated or fortuitous, either way it should work well for Nathan's Cairns investments.

 

[YPG]

Nathan,

Can you keep us updated as to how long it takes you to get a tenant?

Cheers

 

[Nathan]

Will do, it settled like a week ago I think.

The AUD will help out this economy along with a few other economic changes and proposals for Cairns. Not enough to make any big ripples, but definitely for workers etc...

Just bought a few others here too off market and will post the results soon.

Nathan.

 

[VYBerlinaV8]

Good pick up. For $20k it's hard to go wrong, proving you keep the holding costs under control.