QLD would u touch this property

Hey guys if I can throw some numbers at you can you tell me what you think of this property I’m looking at.

Unit 3/1/1 Gold Coast
Purchase price $260k
Deposit 52k
Loan for 208k
Rent 380 p/w
Body Corp $50 per week
208k loan @ 3.6 is 219 repayments a week p and I

380rent-7% real estate fee
353-50 body Corp
303-loan for 219
Still 84 up

The property doesn’t look amazing for capital growth but seems like it pays it self off from day one and If I help push principal down for a year or 2 it will be able to pay itself off with rent increase (hopefully), I haven’t added rates but my view is that’s the price of owning property.

 

How close to surfers? PSize of development? Purpose of buying? Why buy if you dont expect cg? Compared to something else that might have more cg?

 

What is the supply like of similar properties in the area?

If there is oversupply - will impact rental growth too.

Numbers aside, why do you think this makes a good investment for you?

 

Rates and water aren't cheap at the Gold Coast. If it's an older style unit you may not have individual metering for water and probably can't charge the tenants water usage. And you have to allow for the dreaded special levies which can be very expensive especially in buildings close to the ocean. Concrete cancer can cost a fortune to repair.

Any lifts or pools in the building?

 

As an investment property I'm pretty sure I wouldn't touch it.

But it all comes down to your own situation and goals, of which no one here knows anything about.

 

How do you know that it is worth that much in rent? Have you seen proof . What about potential vacancies

Pm fee will be 7.7 including gst. Actually it may be 8.8.

Rates can also be very high as the councils charge unit owners a minimum fee regardless of whether it is worth $260k or $1.5m

Rates and water could easily chew through your $84 per week.

Allow for replacing appliances, balcony railings and anything else that rusts near the salt water and blinds/awnings in the sun.

 

Maybe add a little more for your legal costs and a few government costs ..
Just have to ask how big is the land and what is footprint zoned?,and how many units in the complex if it's one of the older six-pack walk-ups then the future C/G may well be in the land content ..
A quick phone call to the GCCC and most of the zoning --future development within the area can all be sorted within 5 minutes as the local council is very help--full..
Not advice but a simple phone call to start with will give you a better idea of the present and future value range..good luck..

 

Capital growth won't be great, depending on what suburb it's in?
Is your investment strategy purely for cash flow?

 

I think this really depends on if the place is right on the beach, which for the money I don't think it is. Body Corp would pay for balcony railings. Appliances mostly the tenants issue except maybe dishwasher and Dryer no? Friend lives right on the beachfront and hasn't had to replace the dryer or dishwasher in over 7 years, the TV on the other hand, always rusty and windows always salty

 

Sounds OK I would think. Unpopular as it might be I would want to know more than the rough figures, the experience I have had is if the property is really pleasant, spacious, good amenities, good location it makes all the difference. Certainly you can get all what you have identified (except 3rd bed) in really pleasant complexes for just under 300K. If the property is bad, poorly located etc then there are good places that good tenants go to, potentially 2 bed and in good condition.

So I think I am saying you can do better in the GC.