WA Perth NRAS Dual Occ listing Opinion

Discussion in 'Where to Buy' started by radioactive, 13th Jan, 2019.

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  1. radioactive

    radioactive Well-Known Member

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  2. thatbum

    thatbum Well-Known Member

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    Wouldn't touch something like that unless it was a sweet deal without NRAS benefits.

    Looks like a pretty crappy dual occ setup from the photos so far too.
     
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  3. radioactive

    radioactive Well-Known Member

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    I think it's with NRAS benefits making 40K PA income.
    Just curious why do you think its a crap dual occ setup.

    Thanks in advance.
     
  4. thatbum

    thatbum Well-Known Member

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    I meant that if the deal stood up by itself before the NRAS benefits. Which this one doesn't really seem to.

    And if you're going to do dual occ, you should be aiming to build what looks and functions like two entirely separate dwellings imo. That just looks like a normal 4x2 from the front - no thanks.
     
  5. Shogun

    Shogun Well-Known Member

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    So the benefit has less than 6 years to go?
    At some point it time you have to sell. Who will be attracted to the property without the benefit?
    That much money buys a lot of house in that region currently with a huge group to choose from.
     
  6. radioactive

    radioactive Well-Known Member

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    The agent is going to confirm me on the incentive but even if the steam is not left it seems that property would be reasonably cash flow positive.
     
  7. JohnPropChat

    JohnPropChat Well-Known Member

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  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I would definitely check with the local council and get a copy of the approved building permit on that. That second kitchen does look like it was added in afterwards.
     
  9. Rex

    Rex Well-Known Member

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    Why is the current owner selling if the property is basically printing money every year? Seems odd.
     
  10. Shogun

    Shogun Well-Known Member

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    ^^^^ That was my first thought as well.

    I can see the attraction as a NRAS house the tenant gets to live in a newish house for a good price.

    What would make it attractive to a full rent paying tenant?
    If you rent it out as I guess 2 separate 2x1x1 apartments. It seems to only have one outdoor area.
    What would capital gains be expected to be. My guess low for that area.
     
  11. Rex

    Rex Well-Known Member

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    I know the Rockingham area well; being on the wrong side of Read St, that place would not sell for much over $350K without the NRAS income. Cases in point:
    42 Sellafield Bend, Waikiki, WA 6169
    5 Arnside Bend, Waikiki, WA 6169

    Buy nearer the beach to have any hopes of capital gains. Which you would need to overcome the $50K drop in value once the NRAS incentives have dried up.

    Also, OP should be mindful that current market rent is probably circa $375/PW (not much more than the current tenant is paying), so a 20% bump in rent income should not be expected once NRAS is gone.
     
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  12. radioactive

    radioactive Well-Known Member

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    Yup.
    The RE agent has confirmed that it is perfectly legal and approved by the council.
    When I asked him why is the seller selling when it such great CF and his response was that owner has moved to Queensland as he found the job there and got married. He doesnt want to have a burden of maintaining an IP as per RE agent.Sounds weird.
     
  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Please don't rely on a REA to confirm this. You need to actually speak to the council who approved it.

    BTW it's been on the market for 460 days and the same owner is also selling another NRAS dual occ in the same suburb. The second one has not been on market as long - I think something like 60 days.
     
  14. radioactive

    radioactive Well-Known Member

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    @Rex thank you so much for the detailed response.I appreciate it.
    Just to let you know,considering that second 2nd dwelling is also leased out, I am assuming the rental yield to be upwards of 7 % plus.

    I am curious how easy or difficult would be to lease the 2nd dwelling.There is no university or hospital around and it seems challenging to me though.

    Like others have suggested,I am convinced that capital growth will be compromised as its a dual dwelling.However,I am interested in long term CF game provided if it is sustainable enough.

    Thanks alot
     
  15. radioactive

    radioactive Well-Known Member

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    Thank you @Westminster .I appreciate it.Yes,I will definatley check,should i decide to buy.
    Btw,how do you get the information that same buyer is selling the second property(if you are OK to share)
     
  16. radioactive

    radioactive Well-Known Member

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    I think even if you rent it little below market value without NRAS still the yields would be reasonable(Yet to evaluate different circumstances)
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Have you physically seen it? I've seen some great dual occ where both have entrances at the front? My best guess from looking at the photos seems to be the smaller unit has an entrance down the side through a glass sliding door. I think that will majorly impact on people's desire to rent it

    The ownership and listing data was from Rpdata.

    This is the other listing 170 Harrington Waters, Waikiki, WA 6169 It appears to be same design.
     
  18. Shogun

    Shogun Well-Known Member

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    Location, location, location.
    Is "Waikiki" a location?
    It just strikes me as one of many suburbs found south of Perth.
     
  19. radioactive

    radioactive Well-Known Member

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    Thanks alot @Westminster
    Yes it seems the entry is from Side.I am yet to see it.
    Also,my major concern is if there is any demand for second dwelling in area like waikiki.
    I will do my due dillgence and post the update here.
     
  20. radioactive

    radioactive Well-Known Member

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    Well technically it is..Affordable and near the beach.