First home owners/Gen Ys: buying shares of a property

Discussion in 'Innovative Property Investment Techniques' started by TMNT, 27th Apr, 2017.

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  1. Danyool

    Danyool Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    218
    Location:
    Sydney
    Yes, the net yield is after body Corp, rates, etc and interest if there is a loan on the property. (Not all have loans)

    For Bondi, cash forcast is:
    Gross Rental Income $46,800.00
    Property Expenses - $10,528.80
    Interest Payments - $21,021.00
    Net Rental Income $15,250.20

    Maintenance allowance of 2% of gross rent is part of forecast expenses. They also have a cash reserve at the start which is a bit like a sinking fund I guess.

    For Bondi it's on variable rate of 4.29%, with the first 5 years interest only, but they have just refinanced Double Bay to 3.97% variable, so I suspect they may do it. I thought one was fixed, but I can't remember which one.
     
    Danyool, 1st May, 2017
    #21
    The Y-man likes this.
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