NSW Go on give me your opinion

You could do a reno on that. Paint the seat brown and get a new valuation ordered. Tap into the equity to buy another.

 

Yeah and the ones that say 'the one you've been waiting for'. Haha

 

I reckon put a concrete slab under the bench so your feet don't get dusty while your sitting watching.....traffic. Reval and pull equity.

 

Bahaha I reckon there would be a good chance of squatters and rent defaults. Good insurance a must

 

No way, too close to this.
Flirt Adult Store

Once people find out it's price will plummet.

 

Thats funny !!!

 

For Bathurst @darlinghurstsboy look at the statistics for the area.

The majority of tenants would want 3-4 bedroom homes followed by those looking at 2 bedroom apartments. Anything outside of these falls into a niche area.

 

sorry I meant take away the last three digits as if they didn't exist so in this properties case it would be 115 + 65 =180 since that's $70 short I would give it the flick also because its terrible as well of course

 

Just be careful you don't over capitalise! Don't get too emotionally attached when doing your reno..

 

On a serious note.
What is your attraction to this property?
Is it simply the fact that it is cheap?
As others said:
1. The yield is low
2. Is it the right type of property for the location?
3. It looks like a converted motel (might have worked for birch in blue mountains) but he bought and converted the entire building to generate equity)
4. It will most likely be cf-
5. How do you think you will generate cg or equity from this place?

Is deposit amount the issue for you?
I know we all start somewhere however if you pick the incorrect property for your first it can slow your journey significantly, especially if you will rely on an equity pull in the short to medium term to buy your second property. Look at opportunity cost or what if analysis. - if I saved say $10k more over x amount of time (factoring in price increases if any while you save) + incur $x amount of LMI (to buy more expensive property), this property would generate x amount of cg (estimate) and cash flow in the next x years vs buying this studio now which would result in x cg and x cf.
Once you have done a detailed comparison of two scenarios like that I believe you will be less hungry to just snap up something now and be more diligent and hold off for the right property..

Many of the seasoned investors here will tell you that it is imperative to get the first one right.
I can speak from experience that I bought my first in an established suburb in melb but if I saved a little more myself or took the choice of incurring LMI on a better located property it would have made a significant difference in my position to date, I have been able to buy another property from the equity in my first but if I bought where I initially wanted to and not got caught up in FIMO I would have had 1-2 more properties just by saving that little but longer.
I was 23 at the time so time has healed all, but do not discount the power of getting a good buy for your first..
Food for thought.

 

It could have potential rented by the hour.

 

Darlinghurstboy, the original poster, is NOT considering this property. He said that before he started coming here he might have, but not now. So he was interested in the reasons other people would dismiss it - sort of confirmation bias.

 

no...would want to be getting a lot more income or a lot lower price, basically, that's too much for a studio in regional & would have to be right next to UNI to be even worth looking at IMO

 

Totally with you on this one.

Why on earth would you buy when the yield is poor and you are dependent on growth with may be minimal due to location and inferior product.

This is not an investment but really a poor choice.

MTR

 

I just dont understand this thread at all ... Next...

 

They confused this forum with www.tinybathurststudios.com.au

 

Or perhaps Www.ProperNegativeGearing.com.au

 

Well basically the problem is the sale price isnt it ?

The reason i posted this thread is because newbies rush for this type of property.

Quality over Quantity.... Sorry quantity over quality

Returning $110 a week
Strata fees 299 a quarter is $25 week
Council rates $25 week

Leaves $60
Minus agent fees ?
So in reality the sale prices should be really about 65k to 80k ?? Do u think thats right?



Is there much capital growth.? Hard to say.... i doubt anyne wants a ex motel room.
Look im going to admit to you that last year at this time before i read this forum i would of rushed to buy this.
I would of been that stupid and excited to do that just as some newbies would be.

 

- net 2.5% yield, + insurance, repair, management fees.
- 18 sqm only, so dont expect any CG.
- Loan and interest on the money you borrowed to finace.
-> I would keep away from this one. And since you are young, this one is going to tie you up for many many wasted years.
-> The outcome would have been better, if you just rent the place yourself, and then 'illegally' on rent to someone else.

 

Probably too small to get a loan easily so not worth even thinking about.