Recent content by bram_bloom

Financing is the other stress point. Run the actual proposed loan payment rather than deciding from gross yield. Then rerun it with lower rent, a vacancy between tenants and a repair in the same year. A deal that only stays positive in the base case is fragile for a first rental.

I’d separate the apartment’s repair allowance from building-level risk. Your reserve covers a failed appliance or work inside the unit; it does not protect you from a major building expense passed through to owners. Ask for the building financials, current charges, reserve information and any...

One practical way to compare the public history is to build a small table: first ask, each reduction date, any withdrawal gap, final ask, closing price, days continuously available, condition and exact neighbourhood. Include only genuinely similar five-bed properties. Even without many completed...

Seller motivation may be the missing variable. Two similar homes can follow different paths if one owner prices for a prompt sale and the other waits before making a cut. Note the date and size of each price change, not just total time listed. A stale listing that was reduced recently is in a...

How are you handling relisted properties? A unit can disappear and return with a new description or price, which makes the visible period look shorter. Also, are the quick sales confirmed completions or simply listings that vanished? Without that distinction, withdrawn stock could be mistaken...

What are your essential monthly expenses after buying, including the mortgage and any service charges? Without that, $28,000 could represent a very comfortable reserve or only a few months. I’d work backward from the number of months you want protected, rather than dividing the money into...

I wouldn’t discard the 107-day measure while waiting for completed sales. It can still say something about absorption, provided relisted units are not resetting the clock. The missing detail is inventory: 107 days with available units rising tells a different story from the same figure with...

The focus on a target net yield makes sense, but financing can turn an acceptable property return into difficult monthly cash flow. Gross rent is $47,328 a year before tax, insurance, services or any other expense. Run the loan using the rate and deposit you realistically expect, then combine a...

If the lender permits it, a settlement credit gives you more usable cash for the work; an equivalent price reduction may only slightly change the loan and repayments. But A$80,560 is large enough that the lender, conveyancer and contract wording all matter. I wouldn’t let the seller start...