Forum Replies Created
We looked at the H/C area several years ago and could have purchased for round $80,000. Decided against it as the whole area was a bit untidy. Since then it has improved and prices have more than doubled, you couldn’t buy under about $200,000. But rents were never much good. There are still the untidy parts but a lot of homes look good and have had improvements.
Also heard of someone who was in the know, bought a number of H/C properties really cheap over some years, did a bit of work and rented them out. Now with the big price increases in the area, he has done really well.
Anna
Noticed too. Time seems to go too fast these days, maybe people are busy, or the rush to buy and make decisions isn’t happening. We spent a lot longer working on a reno for sale than we planned so missed being on the forum, first grandchild born, new computer after problems, we are currently tidying up our property – lots to do, long hours. Loved watching 5 wallabies and one pink baby this morning – didn’t know they came out of the pouch that small!
Also notice people come and go but I guess it all fits in with lifestyle.
Anna
Depends on its condition. Does it need painting which can do wonders. New light fittings, door handles, bathroom fittings? Carpet, tiles? Maybe verticals, venetians, timber venetians. Think about what you need to do to gain value and get a good tenant. All the above can be inexpensive. even a new benchtop, cupboard doors, new vanity unit and mirror. Lots of good products at auctions at great prices.
We just added $60,000 value to a unit.
Anna
I am always looking in the local areas and further and we will buy as soon as the sale of the last reno settles. We had a few delays but will be ready to buy again.
Anna
If you do a reno in 3-6 months time, what are you going to do with the property in the meantime – a short lease? Remember you have to give the tenant 60 days notice to vacate if that is the case. Material and labour costs may go up. It also depends if you can afford to leave it untenanted.
A few ifs, but if you have just purchased the property, maybe do the reno providing you have done your homework and costs. But do it as quickly as possible so that it can be tenanted.
It has probably had a valuation for finance purposes so after the reno get another valuation done and ask for an equity line of credit. That way you don’t pay for the valuation.We have purchased a house and renovated immediately, another we renovated after 12 months, which gave equity and a large increase in rent, another we will do some work with tenants staying as it is a deck, sliding door, opening up a room. Have just sold a unit bought for reno which the bank valued at purchase price but had we been keeping it, we would have had it revalued and used the equity to continue. But just cashing in for now.
Yes, the market is changing, settling down, the media reports that interest rates are not expected to change till after an election. There are always opportunities around for buyers and sellers.
Anna
We have had a property manager for 3 years whose business is just that, their own property management business, with sales as an extra. The rent roll was up to 300. Worked there casually so kept an eye on things. Business has just been sold so we will wait and see how the new owners manage our houses.
Also heard of someone recently who was worked in PM for many years who is interested in starting her own business in PM only.
Anna
Travelling up to Gympie last year, we saw a paddock of beautiful old Queenslanders waiting for homes.
Look in the yellow pages too, under house movers/relocation services and make a few enquiries.
We’ve looked at several houses for relocation, did our costings, etc. $20,000 seemed to be the price, that was not interstate of course. You have to look at the width of the house because most would have to be “chopped in half” because they are simply too wide to transport. Look at their potential, roofing, walls, asbestos?, stumps, cladding, etc. Check with the council as to their requirements and talk to a builder.
When houses are advertised free, the owners are usually wanting the block cleared to rebuild otherwise they have the cost of removal themselves, bulldozing, dump fees, etc. Very costly.
Still one of our goals is to relocate a house when builder son has less work!! Hopefully onto our acres as a second residence.
Anna
Don’t know about the ‘greedy’. Most people purchase with a purpose, that is for financial security and are in it for the long term. That is sensible and looking to the future. If you did your homework, bought wisely, have rents coming in, maybe a mix of +cf and -cf, I can’t see a problem.
Maybe there aren’t as many people looking (NSW?) but there are still opportunities. Went to two open houses yesterday…
Always looking.
AnnaWe have four units purchased fully furnished and not holiday let which included furniture, whitegoods and window coverings, no TV, but have crockery and cutlery, jug, toaster, microwave, and came with a furniture inventory. (Quantity ssurveyor asked if they came furnished).We have a good property manager who checks the inventory when tenants vacate.
Just debated whether to sell or rent out a unit we renovated, where we would have put in a little more expensive items, and would have got about $80 a week more in rent.
I guess you furnish a property depending on the house/unit, the type of tenants you hope to attract, whether there is a stable/permanent or transient tenancy. I have looked at some of the good furniture packages available too. There is some great stuff our there that is attractive and at the same time, reasonably priced.
Ask a few property managers what the rental would be furnished compared with unfurnished. As our property manager mentioned today, with unfurnished properties, there can be damage to walls, doorways, etc. when tenants are moving in and out. As you said, you need to ask whether furnished or unfurnished is popular, eg if you buy in an area near a uni, you can easily rent furnished.
Anna
Sylvester, look on all the real estate sites on the net, drive a couple of hours away, pick up all the real estate booklets from the agencies, as well as the local newspapers, ring agents, research the areas, have your money ready so you can make an offer and exchange quickly.
Dismith, what fantastic work!!!
Anna
A combination of buy & holds, buy, renovate & sell, houses and units, I/O loans, +cf &-cf. We set our goals, planned strategies for maximum in short term,(12 months) achieved it, and now are resetting the goals and will be buying more. A couple of years of great learning, researching, listening, physical work in renos, reading and evaluating our ideas.
Anna
Hope they don’t fall out the window.. Seriously though, I don’t think I would ask a tenant to paint unless maybe they had suggested it but then there’s that insurance thing too – what if they did get hurt. Also you’d want to be sure of the removal of existing paint, puttying holes, correct type of paint, preparation, etc.
Anna
Jason, if you click onto the name of the agency advertising the property for sale, you can sometimes get their rental lists. Say you go to realestate.com, look at an area, then a property, the agent’s name is usually on the rh side. Have done this for different areas in the past, not yet for Tassis though.
Anna
Definitely contact the brokers on this site Sarah, they will put the figures together and explain it all. Lucifer has explained how your parents could probably buy several properties through using equity as a deposit. They could probably get a line of credit so the deposit is available as soon as they find a property.
We have a mix of positive and negative, houses and units, here and interstate with a few of the units being bought sight unseen. which we since visited though.
Anna
I’m sure in NSW a property is considered sold on exchange of contracts as until exchange, the agent can still show and sell the property – so they told us when we were a bit slow to exchange on a house a couple of years ago. They were really mean as we had paid the full 10% when we decided to purchase. Learnt a less there.
Your accountant would be the one to say whether you will have to pay the “exit tax” though.
Anna
Convenience for one thing. I don’t have the time at present to travel a distance to show the property we currently have listed, 45 minutes away, or to hold open houses. Got a reduction on the commission though and took all costs into account when purchasing to renovate and sell.
Lately though, I notice a few Private Sale signs on properties which would be OK if I lived in it, no worry making a time for inspection.
Anna
You’d have to do homework on the local agents and I would want to go there and check them out as to what they offer for their commission. Most agents seem to have a property management brochure these days telling all about their (hopefully) management skills.
We have 5 interstate properties, all managed by the one agent who we trust. Two were previously with other agents who were not satisfactory. We visit the area yearly, phone with any enquiries, get a newsletter, are kept up to date when a lease is to expire and if the tenant is staying on, always get a call if anything needs doing and the odd letter that a tenant is behind in rent and has been notified of their responsibility. It’s a matter of feeling comfortable with long distance properties.
Anna
You sure do have to look at the returns. The $195,000 1120 acres is a few hours drive away, tenants would be limited as to who would want to live 36ks out of town, and the low rent takes into account the tenant would be sort of keeping an eye on things, or at least the property would be seen as being lived in/on. But also, it would be extra land for more cattle for us as well. Many options!!!
Anna
Marisa,
There is just no reason for you to have any contact with the tenant whatsoever as you pay your PM who should print off and check the incoming rents at least weekly. That is how they know to send out letters as soon as a tenant is behind. As Derek said, your tenant always seems to be 6 weeks behind, not 4, as he should be 2 weeks in advance.
Check with other agencies in the area and get in writing what they offer as far as their commission and what they will do for you, even ask other owners you may know who manage their property. It’s easy to notify your PM that another agent will be taking over the management and collecting the keys on …date.
Bad payers usually don’t change. Our PM recently took a tenant to the tribunal for non payment of rent. They were continually behind, always making promises that they would catch up and now to their disadvantage, are on TICA. According to the 3 monthly inspection reports, the house was always tidy, but it was a hell of a mess when they were forced to vacate.
Our PM in another state sends a letter if the rent is 10 days behind and sends a copy to us to keep us up to date.
Anna
Sarah, it’s never too late to get into investment and your parents seem to have the capacity to purchase several properties with your father’s income and the equity in their PPoR. There’s no age discrimination. I would go through a broker. The brokers on this site are really helpful – maybe your parents could contact them for reassurance that they are in a position to purchase. The advice on the forum is so much better than from friends or family who are not interested in investing and who might tend to discourage your parents.
We’re in late 50’s and have purchased 10 properties in less than 3 years and that is with neither of us in full time employment, in fact I completely retired out of the workforce because I like to renovate and don’t want to be tied down to having to go to work anyway. We’ve renovated several properties which has considerably increased equity and rental.
You don’t have to have two incomes to borrow money. Our loans are in two names, even though some of the properties are not, but your parents need to write down their goals, work out their strategies, time frames, whether purchasing to renovate and sell or hold and tenant the property, work out tax implications, but they would be well advised to talk to an accountant who is into property investing so they know and understand what investing is all about. The accountant will advise on who’s name or names the property should be. They need to think about what type of property, houses or units (look at body corp fees here), and what price range. A lesser purchase price, more properties can be purchased. When looking, get a rental appraisal so you know what income you will get. The lender also takes a percentage of this into account as your income. Look at the vacancy rates for the area. Buy near shopping, schools, transport, where people want to live for convenience and work.
We have done well buying at the cheaper end of the market and look at not having to worry if one out of 10 is untenanted as we are still getting income from the rest. But that was just our strategy and we achieved our goal in a short space of time. We would have done a few things differently, bought more and have learnt lots along the way. Always looking for opportunities and they are out there. We will buy again.
Yes, on any application for finance, dependents are taken into account. But that isn’t a problem. I would say there is no need for you to be involved in their investing, but you might want to but a property between say you and your father. Then your income is taken into it, plus you get half the rent and are up for half the expenses and half the rent goes into your tax return as income. You get depreciation benefits between you too. We have a unit between hubby and daughter.
Hope they get started soon. Good luck.
Anna
