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Is this a good buy?

Discussion in 'General Property Chat' started by standtall, 11th Apr, 2016.

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  1. standtall

    standtall Well-Known Member

    Joined:
    19th Oct, 2015
    Posts:
    255
    Location:
    Sydney, NSW
    A friend of mine just settled on a property (2bed unit) in central coast area.

    Here are the numbers:

    Purchase price: $322.5 K
    Bank Valuation: $407K (By a BIG 4 bank, he had good LVR but still asked the bank to do a full valuation)
    Rental Value $345 per week (Selling agent helped find a tenant who moved in on the same weekend property was settled.)
    Strata: $600 per quarter (10 units in the small block)

    Within walking distance from train, water front, school next door. A lot of development planned for the area.

    To me it looks like a great buy (only if I could find something similar). Anything I am missing here?
     
    WattleIdo likes this.
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,576
    Location:
    Adelaide, SA
    Bit of a money sink on the cash flow side of things, but might be great for releasing some equity. I'd look to do that as soon as the banks will allow to progress onto more investing.

    Be interesting to see what the condition of the strata is like as well.
     
    standtall likes this.