Ok so I’m late on the details. If you were hanging out so much you could have left a comment on the original entry. But it’s ok the logs tell me a lot of you are coming back regularly.
The advertising was for a deceased estate auction $160K+ buyers for three 1 bedroom units. I know the building in Potts Point as I owned three units there until 1991.
I bought a unit in the building again in 1999 and sold it as a wrap. So I’m quite comfortable with the building. It has some problems: a dodgy hot water boiler and roof leaks. The strata levies have gone up 400% in 3 years not counting special levies. There is also a current bunfight between owners with proxy battles at every meeting.
Oh and the units are 33sqm each. That puts them in the difficult to finance category.
I hate going to auctions. There is no point in preparing for them because most times I am outbid. I went along just in case and to see what they sold for.
I wouldn’t mind buying the building piecemeal over the next 10 years or so.
The current rent is $170, $180 and vacant. The two existing tenants are willing to sign new leases at $200 as is.
The vacant unit is one I owned until 10 years ago! It was sold by the mortgagee in possession in 1991 for $81K (a song at the time). I bought it in 1987/88 for $47K.
I made an asking price offer of $179K last year on another unit in the building but the vendor decided not to sell. So I figured anything up to $179K was good buying.
Anyway I picked the first and third up for $167,500 and the second cost me $165,000. Now I’m busily organising finance and legal structures for the ownership. The gross yield comes in at 6.20% making them negative cashflow to start with.
More as it progresses