Your Latest Purchase

Discussion in 'Investment Strategy' started by MTR, 17th Jul, 2015.

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  1. mcarthur

    mcarthur Well-Known Member

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    Thanks dmb.
    I don't know the Canberra rules - can you separately rent out the downstairs flat under a rental agreement? If so, that should help a lot.
     
  2. Phil82

    Phil82 Well-Known Member

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    The house will rent for $350 a week. It has 3.1 metre side access with plenty of room for a granny flat.
     
    larrylarry likes this.
  3. Beano

    Beano Well-Known Member

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    What sort of NET yield did you buy them on?
     
  4. JenW

    JenW Well-Known Member

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    Tell me how you define net yield and I'll tell you :)
     
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  5. dmb1978

    dmb1978 Well-Known Member

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    Not sure. I have asked the property manager to advise when they go through. They d=said it depends on privacy and access but I am sure there would have to be some separation in the power and utilities.
     
  6. Beano

    Beano Well-Known Member

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    Rent less estimated vacancies less rates less insurance less repairs and maintenance less major repairs/replacements split over its life (eg stove over 15yrs carpet over 9yrs roof over 30yrs etc)..all costs you will spend on the property. Less management cost divided by property cost
    This will gives you the true yield . ..if this is above interest cost you will make a profit if below then you will make a loss
     
    Taku Ekanayake and MTR like this.
  7. Whitecat

    Whitecat Well-Known Member

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    2FAST4U likes this.
  8. dmb1978

    dmb1978 Well-Known Member

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    Hi Macarthur, gross yield ended up being 4.9% for the whole house.
     
    mcarthur likes this.
  9. CK_Invest

    CK_Invest Well-Known Member

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    Congrats, how much in USD$ altogether?

    14% net sounds excellent, whats the vacancy rates in the area? Land taxes?
     
  10. MTR

    MTR Well-Known Member

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    $99,000 USD
    Someone posted vacancy rates are around 8%, means nothing to me because I have never had any vacancies since buying in Atlanta from 2011. Whenever a tenant leaves within 2 weeks I have at least 2 applicants to chose from.

    According to Zillow property taxes are $900, I expect this to increase as property prices are increasing.
     
  11. CK_Invest

    CK_Invest Well-Known Member

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    nice, which area in ATL? I was looking around the major universities (e.g. georgia tech) but looking at the price histories there it looks like people have made a huge killing already post lehmans

    is there any vacant house tax there?
     
  12. MTR

    MTR Well-Known Member

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    Markets are still moving though
    Markets crashed in 2007 and many markets started recovering in 2011 and continued to date
     
  13. Beano

    Beano Well-Known Member

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    Just about to replace (for the first time) a roof i replace before!
    Twenty two years ago i replaced the flat roof...due again
     
  14. MTR

    MTR Well-Known Member

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    Lol. Only 22 years
     
  15. Beano

    Beano Well-Known Member

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    Yes flat roof short life
    Meeting with architect to lift the roof ..use a different construction
     
  16. MTR

    MTR Well-Known Member

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    anyone buying?

    just purchased another one in Atlanta and currently renovating, around 8% net yield, this is a hold, as continued growth expected
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I found an interesting site for a client in your stomping ground - Mount Lawley. It's been purchased subject to DA being achieved so pretty low risk - just got to get DA within 120 days which will be tight - we tried to negotiate 150 days but it didn't happen. Thanks to some weekend and probable late nighters it's being lodged for DA on day 10 of those 120 days.

    At $775 per sqm it's a very economical site and comes with a well preserved federation house and in the rear off the laneway 3 terrace houses can be constructed which are 150sqm each.
     
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  18. MTR

    MTR Well-Known Member

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    Is that Central Ave?
     
  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Nope another one :)
     
    MTR likes this.
  20. MTR

    MTR Well-Known Member

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    Keep us posted, interesting