Forum Replies Created
On making enquiries from management of one of these retirement villages, I was virtually told that a tenant needs to have enough money to be able to support themselves before they consider going in as they are left with little of their pension. So personal funds would be needed for outings, clothes, holidays, etc.
Anna
Mysta,
Have been looking at 1200 acres for $195,000 with house. Were told it would rent at about $150pw. We would agree that the tenant has use of the land, can run a few cattle, but also keep an eye on the place as sort of caretaker as there can be vandalism and cattle duffing. You would have to be sure there was water, either creeks or dams, taking into account drought and grasshopper plagues as is currently the case in some areas.Anna
Wrappack,
Just a few thoughts. As population increases in an area, sewerage is generally on the agenda, but takes years in planning. We’ve lived in rural areas for over 20 years, always on septic with never a problem. I think people just have to learn to take care with water usage and disposal of waste, as if they’re on septic or envirocycle systems, they might also be on tank water. We’ve never run out of water, even when the three children were at home. Wouldn’t change tank water for anything. We’re just out of Maitland.
If people buy a rural property they’re usually prepared to put in septic which I think now is $5000+ for the enviro type which also waters gardens etc. It’s just like another thing you know you’ve got to take into account when buying, such as if you’re a certain distance from power and phone lines it can be very costly. Our next door neighbours – we’re both on 80 acres – have only a mobile phone and solar power, plus tanks and septic/enviro of course. They’ve built a beautiful home.
Also agree with Russ’s comments. City people come to rural areas wanting the same conveniences as they have had and then start complaining. A couple of the things complained about here by those who want a rural lifestyle without the ‘rural’ is the smell of the cattle/dairy farm would you believe. Another rang the council to have a wallaby removed from her 2 acres.It had broken it’s neck while being chased by her in the backyard and ran into the pigwire fence. How brave of her to ring the council. ( Hubby works for the council.) Then back to septic, complain that a pump out system costs X monthly. And so it goes on.
Also be careful if you have to get right of way through other properties – gates have to be closed, fencing maintained for livestock and some property owners just don’t like the idea either. You would have to buy the right of way.
Anyway, council is the first place to go to find out just what you are allowed to do. Talk to the town planners and engineers. It would be a massive project to provide all services but good luck.
Anna
Everdine, Lamipanel sells by the sheet and looks like tiles. Friends have just done their bathroom with it and are happy with the result. There is usually information and samples of the different patterns displayed in hardware stores.
KiwiZena, to renovations – we have completely stripped out 3 places, two houses and a unit, as they were quite bad (well priced!) Fortunately we were within an hour’s drive, so had our list of everything from tools to food, ute all packed the night before, ready for an early start and we usually work till late, that is around nearly dark. The idea of course is to finish the reno as soon as possible for rental or sale. Lots of good advice on the forum.
Anna
A happy and safe Easter to all.
As of 2 days ago I have a new computer following a few months of problems, plus our unit reno is completed and went on the market (in NSW) a few days before the Carr disaster.
And Redwing – YES – chocolate must be good for pregnant ladies. VERY RELAXING. Our daughter-in-law was at her girlfriends house a month ago feeling a little uncomfortable with 2-1/2 weeks to go. Her friend, mother of a 2 year old, said jokingly, have some chocolate – it will bring on labour. She did, 10 minutes later water broke without warning, and we are now the proud grandparents of a beautiful baby girl.
Just goes to show, many a thing said in jest…
Anna
Maybe it has a Great Water Feature.
Anna
Sold one unit SEQ which had gone up in four years but return not good enough.
Like Pisces said we kept the loan account open by not paying out the loan completely therefore L/C money is available.
Anna
Twilight, Just thought I’d add this, I emailed you earlier today with details for Cairns, for solicitor and pest & building inspection which we’ve used successfully. I’ve had a problem with my computer and email this morning but am hoping you got the reply.
Anna
Contact Dept Fair Trading for sure, that is all so unreasonable.
The property manager photocopies all the keys, house, garage, letterbox, security door, etc. and that is kept in the owner’s property file so they can be accounted for/checked when the tenant is moving out and returns the keys. They need keys for a routine inspection when it’s due if you have ok’d this when you are not at home and they also need keys to do the final inspection when you move out. A bit of advice in this case – make sure you are present at the final inspection. You would want to get all your bond back so wouldn’t want the property manager to note the place as not being clean for example and take money out of your bond.
You also have rights as a tenant to say no to inspections when you are not home. They can be done after hours. The agent can’t keep an eye on everyone every second to see that they are being honest. They should leave their business card so you know they have been there. You know who not to recommend.
Anna
You are wise to check out different REAs. I also think that is a reasonable rate, but then you might want to negotiate with the one you choose. Be aware of what the managing agent will be doing for you, that is what you are paying them for. Ask about such things as –
-sending you a monthly or mid-month statement (we get a mid-month on one house as the tenant was getting behind)
-the number of inspections yearly, 3 or 4
-a report following each inspection (that way you know if eg. paint is peeling or some such thing and you might want to have it attended to)
-specify how much the agent can spend, if any, on a repair without contacting you. This is on the management agreement. I like to be contacted first so I know what is going on and can give the ok or do the work ourselves, and for ‘doing the figures’.
-do they review the rent 6-12 months
-pets allowed or not
-tenants to mow or do you get a contractor monthly etc.Anna
I also think there are many ways to get ahead. I believe setting a goal is the first thing and working out some strategies which is what we did.
On another post today I mentioned a not so good investment and a couple of lousy financial planners. Three years ago we had our own acreage property and the above investment, were told we couldn’t do anything and should be bankrupt which made us even more determined. What we want is to have that financial security for retirement in a few years (a word only as we will keep investing for as long as we can). We are achieving that by a mixture of good rental properties, including houses we have renovated, units we have bought for rental, and for renovation and resale, plus an off the plan, delayed settlement unit which should be good as it is in an excellent position. There is considerable equity in the houses, about $320,000, should we need/want to sell for any reason and in 12 months we have gained about $125,000 equity in the units. That is in 2 years. So the goal is always there, but along the way, ideas may change to suit the situation. It is just so interesting and opportunities some up regularly.
Anna
Beerboy,
One big insult, makes me angry to hear it.
About three years ago, we visited a financial planner in Maitland. The business had just started. We had made an investment a year before that wasn’t going well. Anyway this ‘clever establishing my business know all’ did all our figures for about $450 odd and told us we should be bankrupt and he could manage our finances for something like $8000 I think, and we could see him a few times a year. They would refinance our loans. Anyway it was ridiculous. They were not into property investment either. He said if we were not satisfied that they could help, we could have our money back. We asked for the $450, never got it, not even a response to our phone calls.
The Westpac financial adviser was also hopeless.
Did our own research and now have 11 properties and around $2m worth.
I would never go to a financial planner or to an adviser who had no investment property as they simply do not seem to be aware. But then of course they get kickbacks only from the managed funds and insurance deals.
Anna
Brandon,
I’m really sorry that this has happened to you when you have almost achieved a goal. I know credit cards are hard to pay off, but maybe this would be a short term option, to get a cash advance on your credit card if you have one. A personal loan for $5/6000 may be another. You seem to be able to save well so could pay either off quickly. Any family you could borrow from short term?
Anna
Bit of a late reply, but maybe she could look at the listings on http://www.onsitedirect on the Gold Coast if she wants to purchase and doesn’t have the time as you said. We recently sold a property through them, having been referred by our onsite manager and found them fast, efficient and professional.
Anna
Hi Redwing,
Re the holiday unit, is it let through an agent or does it have on site management?
We were thinking of selling a 2BR holiday unit with on site managers but have decided against it, one reason being that the manager buys the management rights at considerable cost and it is his business so he is prepared to put in a lot of time and effort to run a good business to get his own income.
There certainly are costs involved and there are seasonal returns, but we purchased this particular one a year ago for $95,000, paid 10% deposit, IO loan, and the returns have been good, up to $1500pm nett for a few months. We’ve just had a look and talked with the managers and were impressed with how they are running the unitsand keeping the whole block to 4 star standards which I gather is based on how the property presents, inclusions, eg dishwasher, etc. They are in the process of some refurbishment and external painting, the latter paid by B/C, we agreed to pay for new bedspreads and curtains.
I answered a post recently where I thought less of the ‘pooled’ type of letting but having seen more and asked a lot of questions when we were there, am happy with the outcome. Gives a varied portfolio anyway. The previous onsite managers were lazy, these took over early in the year.
Anna
Hi Julian,
Our best house purchase
2001
$80,000
Buy & hold
$170pw rent
10% deposit
Value $220,000Two others 2002, for $129,500 and $130,000
Both buy & hold
Rents $220pw & $190pw
100% borrow
Value $230,000 % $220,000Several units bought this year, purchase prices $55,000-$60,000, rents $120-$135pw f/furnished.
Anna
Hi, NETWORKING – is getting together with like-minded people to brainstorm, talk about strategies, share information, set goals and generally support each other, to achieve a common goal – as in this case, successful investing.
Anna
We are just back from FNQ having looked at the five units we bought there in the last year. Two of them, the first and last were bought through the internet, sight unseen.
With the first property, I made an offer to the listing agent over the phone, after having researched and spoken with several agents, probably a dozen. Photos and other relevant information was emailed. He then faxed the offer papers which I signed and faxed back. It was all done by fax, with the originals being put in the mail. We were told a few legal firms to contact, chose one who did an excellent job with all the purchases. We picked a pest and building firm from the listings on phonedisk – turned out to be very good as well, photos included. We have one property manager for four units, the fifth being holiday let which has turned out well.
So, had no problems purchasing sight unseen and I would probably do it again, having done the appropriate research.
All the above properties have increased by about $20,000, except the holiday one which has increased by $40,000.
Anna
Richmond Hi,
I think maybe not mainly the Sydney market as prices have soared in the large regional area where we live. About 16 months ago we settled on two houses which have both increased in value by $90000 and it puts it out of the reach of the first home owners. Same in all the towns an hour or two away. Unheard of up this way – units and houses $1M – mad.
I think that unlocking super for first home buyers is reasonable as with the cost of living, it’s really hard to save a large deposit and then cover the ridiculous stamp duty and other costs.
As Procrastinator said, it could always be paid back in instalments, but then there are years to accumulate super – maybe 30 or so and I know we encourage our kids, all with their own homes, to think about all aspects of investing for the future.Anna
Kay,
I went to an auction recently where the house did not attract one bid, but the vendors were happy to accept their reserve. Had I not had L/C tied up in buying something else I would have offered their reserve price, but also would have been prepared to come up a bit. I’m always after a bargain, but most places purchased this year have been at the advertised price. We purchased this current unit for $16000 less than advertised and did feel a bit mean but it is in real bad condition internally.
But then, property investment isn’t just a hobby for me, it is something where I have done a huge amount of research and reading, few low cost seminars, internet research, setting goals, putting into place my strategies and so I am certainly after the best price at which I can buy.
It is securing our future.Sounds like your studying welfare or something like that? At home every day I watch the wallabies, echnidas, the odd koala, leave out the wild birdseed, that’s rural living – how lucky can you get.
Anna
