Property Investment & Rental Guarantee Case Study

This is a great all purpose stylish design with plenty of room and flexibility to supply care services in a safe, secure and comfortable environment.

Features:

• Living Areas: 2

• Bedrooms: 5

• Bathrooms: 2.5 (1 main and 1 ensuite)

• Garages: 2

• Driveway: 2 cars

• Outdoor Areas: 1 (Alfresco)

• Yard Size Approx: 470 m2

• Features: Ducted air, granite tops, security screens, quality appliances, security system, on street parking

1. Turn Key Cost: $450,000

2. LVR: 80% (However only 10% cash was needed)

3. Cash in the Deal: $75,000 (Deposit and finishes)

4. Interest: 3% , I/O

5. Gross Rent: $720 pw (market avg $500 pw)

6. Lease Term: 3yrs + 5yr option

7. Bond: $2000

8. Lease Benefits: Lessor to return to new and look after all minor repairs.

1. Gross Rental Income: $37,440

2. Net Rental Income: $20,700 (after costs and I/O)

3. Net Tax Offsets: $6,000 (depreciation and costs)

4. Cost Savings: $3,820 (no management or vacancies)

5. Capital Gain: $10,000 (minimum @ 2% per year)

6. Occupancy: 100%

7. Hassle and Stress Free: $Priceless!
   

TOTAL NET BENEFIT: $40,500 pa!
CASH ON CASH RETURN PER YEAR: 54% ROI (inc offsets)
TOTAL NET YEILD: 6.7%