10-14 River Street, Ulmarra NSW 2462

GROSS RETURN ON ASKING PRICE: 7.21 % p.a.
NET RETURN ON ASKING PRICE: 6.00% p.a. (Net of listed expenses, see detailed below)

If you are looking for the high returns of commercial real estate but don't want the risk of having rent-free months between tenants you should consider this super-low risk residential complex in the historic river port village of Ulmarra. Around 12 mins drive from Grafton and a little under 40 mins from Yamba on the North Coast of NSW.

Built in 1982, this 10 townhouse complex features 9 x 2 bedroom 1 bathroom brick townhouses and an additional 1 x 1 bedroom residence plus individual carports.

Each townhouse enjoys its own private laundry, an additional toilet, and river views from a spacious upstairs verandah.

There is plenty of green space in the complex, which originally had approval for 15 townhouses to be built. A gorgeous riverside park across the road (Bailey Park) is a lovely neighbour to have and the village Police Station, Hotel/Restaurant and primary school are all within easy 3 blocks walk or less. The Commercial Hotel has a riverside restaurant that is very well regarded.

Current tenant mix is quite diverse with singles and couples of various ages. When vacant flats have taken an average of about 21 days to fill since the current owners bought in 2014, this means when a tenant gives notice (usually required to be 21 days) you can have a new tenant arranged before the old one has moved out.

Annual Rent:
Tenants pay weekly - $2450 per week
U1 $250pw, U2 $260pw, U3 $230pw, U4 $240pw, U5 $240pw, U6 $250pw, U7 $260pw, U8 $240pw, U9 $250pw, U10 $230pw (Rent increase from 26/11/18 to $240pw)

TOTAL ANNUAL RENT: $127 400 (No GST applicable).


Annual Expenses:
Council Rates: $1711 per year (CVC 2019 FY)/176500
Council Rubbish Bins: $1279 per year (CVC $319.65 per qtr)
Water Usage: $3000 per year (estimate, varies, paid quarterly)
Septic System Maintenance: $12 000 per year ($460 per fortnight)
Landlord Building Insurance: $3360 per year (Hollard Insurance cover exp. Dec 2018)

TOTAL LISTED EXPENSES: $21 350 PER YEAR