How much should I pay for a 3 x 2bdrm block of Torrens title units that are currently uninhabitable and require a 6wk cosmetic renovation ($100k) for a combined income of $900/wk post Reno?
There are a myriad of factors in determine the value of a property. E.g. your question does not state the location/suburb/postcode of the property.This is crucial information.
There are generally 3 ways to obtain a valuation or a market opinion.These are:
1.Your own research by using data such as Corelogic and Pricefinder or the reall estate public websites e.g. Realstate.com.au or Domain.com.au
2.A paid valuation by a valuer or the financial institution will send their own valuer if you are borrowing the purchase cost
3.A free market appraisal by a local agent
Bel. Good morning. Thank you for your question. The answers thus far around valuation and percentage yield hopefully gives you some guidance. I thought I would just add a comment from a Broker / Lending position.
You say that the units are currently uninhabitable, but only require cosmetic renovation. These terms potentially seem at odds. If a property is truly uninhabitable, then most Lenders will refuse to accept it as security regardless of value ( are they vacant at the moment ?)
It could be worthwhile having a chat over this as well as your longer term intentions for the properties. Are you going to fix them up for a quick "flip" (resale), or are you looking at this as a long term rental investment. The answer to this may determine the best form of finance that you might require.
Please give me a call if you would like to chat.
Customers First Mortgages & Insurance.
1300 ASK KEN (275 536)
Hi Gents thanks very much. The places are in Stafford Brisbane and uninhabitable in the sense that squatters removed some doors, windows are broken and the carpets and walls are filthy. The walls are undamaged and so it simply needs new floor coverings, paint, kitchenettes and bathroom ware. I've analysed against other unit complexes in the area of the same vintage. They are priced 1.3 and 1.4 mil with 4 and 5 units respectively with rental income ranging $295-$450. They are going to public trustee option. Based on size and Reno requirements, I'm guessing a $600-$850k sell... broad I know. Ken, I agree and am concerned regarding sourcing a loan for uninhabitable property. We are considering putting forward a renovation plan and funding a valuation.