NSW Cheap Studio

Thoughts on this?

1 bedders (C Grade) are going for 500-550
1 Bedders (B Grade) are going for 600-650
1 Bedders (A Grade) are going for 700-750

https://www.realestate.com.au/property-studio-nsw-dee+why-140904440

Studios are far apart hence the value is harder to determine..

 

Depends on your strategy - at a basic level I will try and tie the property to how easy or difficult it is to get lending on it.

If its too hard (which means lender don't like it for a reason) then the next person will have difficulty buying it when you go to sell it. In other words there is a cap on growth.

This is under 40sqm so you will have a lender restriction on who will lend - there are only 3 lenders that will consider this.

 

I understand selling causes issues hence I should be buying low. Assuming long term hold how does the $$ stack up..

Rented: 350pw
Strata/water/council: 550pq/160pq/360pq
Looking like once its paid off its only good for around 1k per month..

Positives: Low risk
Negatives: Strata / Rent return, selling issues.

 

The numbers are low risk and low return.

The biggest issue with this is that you are eating up your borrowing capacity and lending at the moment is at such a premium.

Digressing a bit but everyone is recalibrating their portfolios if they want to move forward - they are getting rid of stuff that either isn't doing much or has reached its growth potential.

If you are going to use your borrowing capacity make sure its on something that has the potential to give you decent growth.

 

any suggestions?

 

Plenty with a bit of searching

https://www.realestate.com.au/property-house-qld-deception+bay-140981200
https://www.realestate.com.au/property-house-qld-petrie-140367475
https://www.realestate.com.au/property-house-qld-deagon-140572115

 

half done and pool isnt for me... but deception bay is interesting. it was sold in august 19 for nder 400k. i guess they want around 600k now, probably bit overpriced though.

 

Depends on the budget but yes.

My sister (her first home) purchased a 2 lot site on the central coast for $570k - plan is to sell one lot and build a new dwelling on the next lot and either hold and go again or sell and use the equity from both lots to do a bigger project.

As with almost everyone, her borrowing capacity doesn't allow her to do multiple projects at the same time so we need to do one project at a time. This is why choosing the right property now is so important - there is so little borrowing we have (in comparison to even say 6 months ago).

 

two lot for 600k (just land i assume ye?) quite affordable actually. congrats!

 

It has a house on it and she is about to rent it out at around $350 per week.

 

[QUOTE="Shahin_Afarin, post: 1219852, member:
This is under 40sqm so you will have a lender restriction on who will lend - there are only 3 lenders that will consider this.
[/QUOTE]

CBA and ?

 

Old thread but that living/bedspace is only the size of a carspace

 

I didnt end up buying this. i should have.... now i am unable to access finance without a FT Job..

 

I wouldn't be kicking yourself as it hasn't seemed to have done much in terms of growth according to domain and property value. I'd suggest get a FT job, at least for a while, then a property with a wider market appeal. I agree with another reply that Potts Point for a studio maybe, not really sure about Dee Why. Is it for a ppor?

 

I know! I need to get a job, get the loan and then i can quit if i want.. damn common sense always gets to me