Does anyone want to share a deal

Hi MTR, a few blocks within 200m around the corner have sold recently for 600-630, without the views so probably 20+% increase within 12 months?. Was going to edit post to add that but baby woke up poor little cherub is teething

 

South of Wollongong..about a 15-20 min drive further south.

Yes...pulled equity out in Jan. 2015

 

Purchased a 90M2 2 bed NRAS approved apartment in Castle Hill NSW for 570K @ 15 months ago with zero down. Will settle shortly. Conservatively valued at 730K + now. 160K + growth in 12 months , not a dollar down and with 10 years of 8-10K CF+ to come

Purchased a lovely 2 bed NRAS approved apartment in Elanora Heights NSW a couple of years ago for less than 600K. Has had a nice run as well, and is also producing some pretty nice cash flow...

Purchased 2 x NRAS approved Studio Apartments in Port Macquarie which will settle in a few months. paid 260K each. The NRAS from 2 of them will pay one off in full, so even if I make zero growth, I'll have an unencumbered property in 10 years , leaving me with a passive income stream for life - and these are purpose built for the hospital ( they are literally right next door) and new Charles Sturt University campus ( 700 Metre walk) so I expect fairly low vacancy rates even post NRAS.

 

Purchased a 2 bedroom unit with my partner in Narrabeen Nsw in August 2013 for $510k. Was previously leased at $480pw.
We painted and put new carpet in over two weeks. Leased it for $520pw.
Bank valuation three months ago $700k. Now looking for our next purchase.
We we're going to live in it but came up with a better solution.

 

I bought a 5 bed, 4 living room house in Greystanes in Sep 13 for 618k. It was a divorce sale and every window had tinting on it so the place looked dark and gloomy. Spent 70k on renos and factoring in the recent downturn it would be worth high 900s now.

 

This is how I increased an IP yield on a deal no-one else was interested in..

The property was located Morton Bayside in Brisbane with a tenant in it on a lease with 6 months still to run.

It had been listed for sale once previously with no interest a few months prior, so I knew the vendor was motivated to move it ASAP.

They hadn't been getting any offers/interest because it was still currently tenanted and this was severely limiting their market exposure.

Anyway, from my DD I picked up that it was approximately $50-$60 per week under market rent - $270 p/w and should have been up around $320-$330 p/w. The lease still had another 6 months to run so my hands were tied in trying to increase the rent at the tenant level.

In making my offer I added a clause in the contract that the vendor pay me the sum of $1500 cash at settlement so as I could use it to offset the low rent for the remainder of the lease post settlement.

I did not want the $1500 off the purchase price because that does not increase your cash flow / rental yield, as the purchase funds come from borrowed capital.

The way I arrived at this figure was $55/w x 26 weeks = $1430 rounded up to $1500 - and the vendor accepted.

Just goes to show there is always more than one way to skin a cat & increase your yield. I turned a low yield high capital growth property deal into a better yielding opportunity.

Just another example how one can manufacture a better opportunity out of no where with the right background information.

Hope this real life example has been of help and provides food for thought that you could possible tailor on your own future deals.

 

3/2/2+2 carport house
Boondall QLD
Purchase price: $384,000
Purchased: Late 2014.
Rent: $440 per week
Yield on PP: 5.96%
Bank val at purchase: $430,000 (used instant equity to get my foot in the door with limited deposit)

 

Great, never thought of that one.
Definitely more than one way to skin a cat

 

Settled on a 2 br apartment in West Footscray 2 weeks ago for $385k.
Valued last year at $427k. Vendor was keen to sell.
1 yo, with 9 years of NRAS left on it. Archicentre guy inspected it and described it as flawless.

 

can you share cashflow?

 

I like this idea, and certainly some scenarios where a structure like this would be handy for improvements to the property etc.

At what point do you think the lenders are likely to see this as a problem? They see a copy of the copy of the contract before settlement. Is the banks valuation likely to be adjusted to By the amount paid out - this is essentially a reduced purchase value from their perspective..

 

A few k is probably not going to affect much. OTP contract usually carries stamp duty reimbursement anyway.

 

This is my first deal/development/adding value to a development site without getting your hands dirty.

Purchased a maisonette (duplex) in Broadmeadows Melbourne about 5 years ago now, approximately 1000 sqm of land.

I employed an architect to prepare plans and permits, he managed to get 8 reverse living apartments on the site, a mixture of 1 and 2 bedders.
I had one architect state we could only get 6 on the site, just shows how important it is to get the right people on board.

It look close to 12 months to put this deal together as we (architect) went backwards and forwards with council.

Neighbours on each side wanted me to buy their properties as soon as they realised it was a no go, they basically placed objections into council, which were eventually thrown out the door.


Purchase Price/stamp duty - $597,000
Architect Fee - $20,000

Sales Price - $907,000

ROI (Return on Investment) - 45% (12 months)

I think I have it right about 45%

 

AMAZING!!!

 

The discounted NRAS rent is $260 (325 normally), which seems a tad low, but it is set independently. So with the NRAS incentive I'm around CF+ $6k annually after tax. Not as good as my other ones, but the lower price makes up for it. This is a long term hold.

 

Yes I would share this deal with you if wish

 

Only if you share half the profits on your latest deal

 

Try getting this cash flow in currently market, I think this is brilliant

 

Im pretty sure there's some great stories to be found in any purchase.

---Highest yield deal in the last 2 years----

Date: September 2013
Location: Nowra
Type: Block of 4 units on one title( all 2 bedroom)
Price: $527,000

Rent : $880 per week ( Bought it 2 years ago with rent at $800 p/w already) = $45,760
Yield: 8.6%
Yield return in $ figure after all expense: ~+16,000

Bank Valuation Oct 2015: $740,000

---------Highest Capital growth in last 2 years-----

Date: Oct 2014
Location: Campbelltown
Type: 4 bedroom brick home on 556 sq m
Price: $465,000

Rent : $440 pw
Bank Valuation September 2015: $580,000
Gain: $115,00 in exactly 1 year ~20%

 

How about you MTR?