Hi Guys, I just saw this on realestate: 17/7-27 McLachlan Street Manunda Qld 4870 17/7-27 McLachlan Street Manunda Qld 4870 - Unit for Sale #127882238 - realestate.com.au 60K investment for $550 return pw. Surely there's a catch. Anyone familiar with the cairns market care to share?
Not the best area, this complex used to be a holiday rental complex, now a bit of a slum. Stay away, the returns won’t be worth the headaches. *IMHO
Similar bottom of the barrel units on Pease st, lots of undesirables, petty crime, social disadvantage. Return looks great but it would be a headache. If you are really keen on a unit I would spend a little more.
thanks for the feedback guys. Just looking for a cashflow positive investment to boost my serviceability, not really keen on a unit per se. Numbers just looked really desirable! but don't think I want to deal with the headache either. So I'll keep looking =)
Plus, based on this ad from 2015, Body Corp fees look horrible. Sold Unit - 31/7-27 McLachlan Street, Manunda, QLD 4870. Council Rates are horrible. By the looks of it, rental income is based on the two properties. Are Rates and Body Corp fees based on two properties as well? Also, what are the Body Corp fees and issues going forward? I'd be extremely cautious. Cheers Jen
Thanks Guys. Realestate agents came back with conflicting information!! One said it would clear $4K net after all body corp and mgmt fees, while the other said you would net $15K. Hmmmm I think I'll pass. Doesn't look like it'd be easy to onsell in the future. Thanks for the tips! Much appreciated =)
Hi Guys, Is this the case for most of Cairns? I too was browsing the market and there is a few places available the return a positive chashflow - Or so they say! I was looking at the following two: 66 Dalton Street, Westcourt QLD 4870 - House For Sale | Domain 26 Ascot Avenue Westcourt Qld 4870 - Unitblock for Sale #128264254 - realestate.com.au in fact there are a lot of properties in Cairns with great returns and from speaking to a few agents they all tell me the rental vacancy rate is around 2% Can someone more knowledgeable explain to me what I am missing?
so the 4 units is harder to finance and need a higher LVR which diminishes the buyer pool and might make it easier to get a good deal if you can finance it However don' be surprised if Council rates /water and insurance are 10k per year. I would also budget about 7k a year for maintenance on that property (that may be under doing it) plus management fees will be around 8% plus your vacancies should be taken into accunt at least 5% so 1200x 52x 95% x 92% = 54,535 less 17k = 37,535 so net return is around 4.6-5% I think you could get this same return on buying a house for around 200-250k that rents for 350 I would also check the rental figures quoted as $300 a week for a one bidder sounds above market to me when you can get house for 350
Also another bad point about that style of accommdation is that if there is a downturn in the rental market these places will be the first to become vacant A couple of reasons- they often attract transients who will move on somewhere else for work or they will happily vacate their one bedder and move into a house for the same price
Location is not great. The whole area is in the flood zone, which would impact severely on finance, insurance, and growth options. It backs onto a creek, so would likely be full of mosquitoes. Both look very high maintenance, probably riddled with Asbestos. Plus the roof on 66 Dalton looks like it needs to be replaced immediately. And the pool would be expensive to maintain, and possibly leaks. Cheers Jen
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