All Topics / General Property / tenanted properties

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Ko_starrKo_starr
    Member
    @ko_starr
    Join Date: 2004
    Post Count: 17

    hey everyone.

    I’m very new to investing in property I’m from Brisbane and I’m looking for a Positive cash flow property at the moment Mt Isa looks like the best place although very few have tenants in them that are for sale. I’m just wondering if it’s very important to buy a house that is already tenanted. I feel as if it must be tenanted manly because I’m new to this and because Mt Isa is so far away.

    what are your opinions on this?

    Profile photo of kalonikaloni
    Member
    @kaloni
    Join Date: 2003
    Post Count: 124

    having a tenant at time of buying
    is not really relevant in my experience.
    The current tenant can leave tommorrow and you
    can not get a tenant.
    then you can gert a property with no tenant get a new tenant straight away and stay for years
    The best thing to do is
    research the area to see property vacancies in
    the area AND DEMAND in the short term
    AND long term

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Ko_Starr,

    In your quest for a tenanted property – be aware you do not inherit someone else’s problem and their reason for selling.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of MJTMJT
    Member
    @mjt
    Join Date: 2004
    Post Count: 80

    why not include on the contract a tennanted by date, where the RE agent (or their rental section) must find you a tennant by a specific date to satisfy the contract. Like the finance date.

    It will make the PM work hard to get a good tennant so the agency also gets the sale!

    What do you think?

    [medieval]

    Matt

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    Matt,

    Not sure the vendor would go for that. If you buy a place untenanted, I think it’s the new buyer’s problem.

    Ko, I bought a place recently, that had no tenant, because the vendor wanted to be able to sell to an investor or an owner occupier, and not limit her options. As soon as I said I was an investor, she got in a tenant- good for her before settlement, and good for me after settlement.

    If the places in Mt Isa have no tenant, you might wonder why… are the places “tenantable”? Mt Isa is a place that has been mentioned as having one of the biggest rental yields in Australia:

    http://finance.news.com.au/common/story_page/0,4057,10319145%255E14302,00.html

    …however, if you have no tenant, then you have zero rental yield. Check out the rental history of the IP, and ask a RE agent (not the one who is selling to you) to do a rental assessment on it.

    I like to buy IP’s with a tenant in place. With some IP’s, tenant demand is so strong that they have a waiting list for particular properties… but it’s a bit rare and not something to count on. Tenants are the cornerstone of IP’s, so a tenant in place can be fantastic, but as Derek alluded to, a [mad] one can mess everything up for you.

    kay henry

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Hi Ko_starr
    Check all the agents who rent properties, see who’s most actively advertising. Request a few REAs fax/email their vacancy sheet to you each week. Buying tenanted property often comes with an unsettled tenant who has already seriously planned vacating just in case the buyer wants to move in. Don’t worry about which way they’ll jump because you rarely guess it right, just be prepared with knowledge of local agents and good PMs, and let them do it for you.
    cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

    Profile photo of Ko_starrKo_starr
    Member
    @ko_starr
    Join Date: 2004
    Post Count: 17

    Thank You everyone for your replies. I gathered a lot of good information from it and most of it made scence.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.