So we were looking at house in Caboolture. Put in an offer. Three weeks. Hear back and they say valuer said worth more, so they back out. Now, it will continue to stay in the market for 6 month and probably sell for the same price we offered. Hmmmmmmm.
2 comments:
look for an investment that has multiple opportunities, for example, a property with 2 approved detached dwellings on it. live in the smaller dwelling, rent out the big main dwelling. Then you are buying a house to live in and an investment property.
Another example is to buy a property with a dwelling that has subdivision potential, live in the house, get the subdivision approved, build on or sell the subdivision.
Another opportunity is to buy a dwelling with almost no outgoings, for example a house with all of what I have explained above that has solar hot water and power, it's own rainwater tank, grey water irrigation, complete food security, with many tropical fruit and nut trees, berry bushes and vines, with a vegetable garden, herb garden shade house that provide an abundance of healthy fresh food all year round.
I know of such an investment that certainly will not last long, a smart home buyer or investor will snap this one up without blinking an eyelid.
http://www.realestate.com.au/property-house-qld-kawungan-116709855
Now let's look at the maths.
Purchase $549,000 plus $9,680 stamp duty and about $1,500 legals and searches, there are plenty of lenders out there that charge little or no loan establishment fees.
Live in or rent out the furnished cottage that would rent for $210 per week.
Rent out main house for $400 per week.
2 loans
1st equity loan for 20% deposit, stamp duty and legals $120,000 = $115 per week at 5% interest only - pay this back and more with proceeds of the subdivision of 1/2 acre off the back of the block. The neighbour has done just that. The new house on the back half acre, is now for sale over $500,000. Your family member might want to invest to share in this profit.
2nd from a lending institution, bank or other for 80% of the purchase price so there is no mortgage insurance payable $439,200 = $422 per week at 5% interest only
Rates $3,349, insurance $1,500 = $4,849 or = $93 per week.
No electricity, well actually a cheque from Ergon each year for power fed into grid up to $1,000 per year.
Maintenance and repairs, nil as the property is renovated.
So what does it really cost to buy a property like this if you are smart?
Loan interest $537 per week
All outgoings rates and insurance $93 per week
Total $630 per week
Less the income from the main house at $400 per week.
Actual weekly cost to buy this house is only $230 per week if you live in the cottage, now that is even cheap for rent let alone no electricity bills ever, 3+ pieces of different fruit each day from your garden! nuts! vegetables, herbs, and whatever else you want to grow.
Well if you bought this as an investment, there is a bit more stamp duty, but $610 per week rent coming in, means you could buy this house for about $20 per week.
See the opportunities that are before you.
Happy investing.
If there is someone who moved me with her great skills and knowledge, it’s patricia mirawati susilo. I got a chance to meet her when she assisted me in giving her experience to get my old property sold
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