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?

Hi Bel,

I'm not a property expert, but if you intended to get a gross rental return of 3-4% then at $900pw the pricing is between $1.1 and $1.4m for purchase. Though there are lots of other considerations.

Hello Bel,

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.
Best Regards
Ken Olds
Customers First Mortgages & Insurance.
1300 ASK KEN (275 536)