The vendors are looking for a win-win situation, and you will benefit! After taking stock of their current situation and future plans, they’d like to sell the family home and they’re thinking outside the square and so should you!
Ideally located handy to The Palms Shopping Mall, local parks, beach and Golf Courses; their 3 bedroom home has been part of the family for 15 years. All bedrooms and living areas have north facing windows with the whole house acting as a “sun trap”, plus a log burner keeps them warm throughout winter. Kitchen, bathroom and separate laundry are all in tidy condition, and there is a huge double garage with internal storage room too. There are multiple outdoor areas allowing quiet spots to relax all day round, plus an outdoor spa pool is easily accessible from the main bedroom for those late evening wind-downs. The whole property has been lovingly cared for by the proud owners, and they will continue to do so for as long as they occupy the property which I have secured for the next 3 years at $500pw fixed term! The will sign tenancy agreement prior to going unconditional (Median rental in the area is $320pw for a 3 bedroom house, so this is a unique opportunity to secure a property with above-market rent, for a long-term tenancy – what more could you want?)
RV - $332000
PP - $291000 plus FF of $5000
Fixed term tenancy of 3 years @ $500pw
Rates - $1469.12
80% loan = $232800. At 8.5% IO this equals mortgage payments of $19,788pa which is only $380pw....you're getting $500pw
Maybe the tenants will be open to a lease option. By the time 2 years rolls by rents will have increased and capital growth is back on the rise. Interest rates are likely to get better than the 8.5% I've used....it's all POSITIVE with this investment! This property looks after itself!
I have attached a RevIQ produced analysis of the investment. Notice I have included the following costs of which are reasonable, and possibly excessive in some parts, in my experience: