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  • HOT PROPERTIES OFFERING A POSITIVE CASH RETURN

HOT PROPERTIES OFFERING A POSITIVE CASH RETURN

May 3rd, 2018

HOT PROPERTIES OFFERING A POSITIVE CASH RETURN

Here at Umbrella we understand that buying a property needs to make sense. As an investor you want a cash positive property. A general rule of thumb is that a property with 5% + return is a good investment.

As an agency we have the ability to help you find your dream home and it will cost you nothing! That is right $0.00. The nice thing about using us as your buyers agent is that you deal with one person directly and we can crunch the numbers. The two properties below are listed with other agents and although this is the case I thought they are too good not to share with my current clients.

If you want anymore information about these properties please contact me so I can ease the purchase process. It also means you won’t have to put up with 10 other agents trying to hassle you for a sale.

Doesn’t that sound like a great plan!

Agent’s Choice Number One:

6/4 Braund Street, Bunbury

2 Bedroom, 1 Bathroom, 1 Parking Space

Asking: $190,000

Located just a 5 minute walk to the centre of town. Currently rented until October 2017 for $275 per week. Strata costs are $402.50 per quarter ($134.17 per month).

How did we calculate the rental return?

275 rent per week  X  52 Weeks  = $14,300 per annum

14,300 divide by purchase price of $190,000 = 0.075 X 100 = 7.5%

Cons about this unit is that they are a smaller build however for tenants this does not seem to affect desirability. The unit has strata so there is an extra ongoing cost however, due to the fact it does not have any major facilities such as a pool or tennis court – these maintenance cost should not sky rocket. Pros – owner is keen to sell and another one on the block was just listed for offers over $175,000. Also has a steady tenant paying rent and appears to want to stay.

 

Agent’s Choice Number Two:

21 Rendell Elbow, Withers

3 Bedroom, 1 Bathroom, Off street parking

Asking Offers over $170,000

Although Withers can be seen as not a great suburb the Department of housing has recently decided to sell off a lot of the housing they have in the area. With this they have freshly painted and renovated the houses. The property is located on a 700sqm block and is zoned R20. Built in 1985 it is a brick home with tiled roof.

How did we calculate the rental return?

240-260p/w rent per week  X  52 Weeks  = $12,480 – $13,520 per annum

$12,480 or $13,520 divide by purchase price of $171,000 = 0.073 or 0.079 X 100 = 7.3-7.5% return

Cons – sightly less desire-able area approximately 12 minute drive to Bunbury.

Pros are that the houses on either side are neat and tidy and appear to be owner occupied. The area itself is staring to loose the bad name and is turning a new leaf. It is close to schools, shops and playgrounds making it appealing to tenants. The entire property has been freshly renovated and painted prior to selling . – so it is rent ready. Potential in the future to subdivide and build two properties or more.

 

Why wait to buy property….. buy property then wait!

 

Contact Celestine Pfuhl today to ask her opinion on property or to find out more information contact her on 0435 824 123.

 

 

About the Author

Celestine has been in the Real Estate Industry since 2002. She has competed in some of the most competitive markets in Australia. Combine her strong negotiation skills and keen customer service to achieve the best results for her clients.