merry xmass! what do you guys think about this offer: 12 Kookora Street Griffith NSW 2680 - Unitblock for Sale #117908247 - realestate.com.au seems like a great deal, with gross >6% and plenty of land for subdivision? thoughts?
Asking $625,000.00 - 12% deposit $75K - $550K mortgage - monthly repayments ~ $2900 ; $34,800K/year • Fully tenanted - current rent $41,600 p/a • Excellent occupancy rate • Council Rates: $3,577.80 pa • Water: $207.00 pa plus consumption • Sewerage: $3,168.00 pa • Insurance: $1,200 approx $34800 - 41600 = $6800.00 Does not leave much for other expenses...
Without looking , After costs its hard pressed being 5% net return. Prob commercial finance. Possible flood zone, do DD before jumping in for dev
The land is on a river bend and you probably cant subdivide it or build on it. If you could the vendor would have sold the land off already. As above lots of dd required... At those sort of numbers id say you can do better
Undertake your due diligence as noted above - read the LEP, check the flood maps, review the zoning, FSR and if keen have a chat with a local town planner and council's town planners.
