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further info: the property is located in melbourne
biggest problem is obtaining finance.
banks normally wont allow for anything less than 50m2Yeah, In a cases like yours, make sure you get your broker to 'harass' your bank to speed up the process.
I had a case like that a while back with the vendor threatening to to take the deposit and void the contract.You should put in an exit strategy!
What if their situtaion changes and wants out? All well and good but you must think of worst case scenarioWhy not get a pen and paper and draw one up before you meet him?
It's fast, basic and will save any unnecessary expenses.May I ask what suburb/ state this house is located?
I've seen land less than 700m2 be subdivided into 3 titles before…sounds very oddThank you again Mike for the additional reports
Mike,
Thank you for the Report. You're a Top Bloke!Anything above 5.5% is good considering that a savings account returns approx 5%.
Purchased an inner-city apartment for $310k, rent at $415pw. Gross yield at 7%
Properties like these are out there, you just need to find 'emLike yourself, my girlfriend and I (both aged 23) brought our first property last year where we lived in it for 6 months (getting the FOHG) and have never looked back since. We're about to buy our second IP.
Unlike many investors on this forum, we went down the old fashion path of placing the 10% as deposit as opposed to using Vendor Financing, Options etc.. We are now unlocking the equity + savings to purchase the 2nd.I suggest you move out of the property and move back to the parents and lease the property out.
The rent income can go towards the mortgage as-well as you putting in extra payments (as if you were paying the mortgage).
This way, you pay off your mortgage in half the time as-well as paying off your expenses much sooner.good luck!
No worries Tugger!
May I suggest you use gumtree.com as there are people who advertise that they need rental properties.
The good thing is that advertising on this website is free and gets allot of traffic.HOWEVER! be very careful as most people on this website were not successful in obtaining leases from agents.
So double check references and interview them before you hand over the keys!Cheers,
As an Accountant and a fellow Investor, I suggest putting up the rent and ignoring the tax benefits.
In my opinion, a loss will be a loss!At the end of the day, a dollar in your pocket is another dollar for you to invest in before tax time!
I'd rather gain an extra $1 than save $0.30cents in tax gains. Get the drift?Only works when you have a complex tax structure and high income
Following on from SNM's comments, go to the consumer affairs website for TAS and read up and print the contracts, forms etc…
In Victoria, we use http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Renting-Landlords?OpenDocument&1=910-Renting~&2=20-Landlords~&3=~I've been doing this for the year or so, not so hard!
just make sure you take out landlord insurance etc…goodluck!
Hi Nat,
You should try auctions held every Wed and Sat.
They are new or ex demo and generally at 70% off retail and below wholesale prices.
There's GraysOnline and Fowles Auction as well as others in Melbourne.Good Luck!
Hi Lucigoosey,
Since my apartment is nicely located in the inner city as well as being nicely renovated, i had the reverse problem of which tenants to choose!I did not use the services of an agent and paying the 8% commissions + advertising fees + listing fees etc.. saving me about $1,500-$2,000 pa
I did the whole thing by myself and found that I would get 100+ enquiries each time (depending on your situation, an agent may be more convenient). I went through the same process of what an agent would have done by processing each candidate via their application form and chasing up references etc..From what I have learnt, You can't go wrong with selecting an inner city location so my pick would be StKilda East rather than Dandenong.
Furthermore, the decision of whether to furnish your property depends on what strategy you want to adopt.
Generally, Fully Furnished apartment gets the higher rental return but tenants generally stay there for 6 to 12 months. As opposed to Un furnished where you sacrifice the high rental yield in return for longer lease terms.Hope that helps
Research, Research and Research!
Knowing the area is very important as well as your target market.In my case, it was young professionals so i purchased the apartment close to the city, close to trains, trams and the bars on chapel st.
80% research, 20% luck
Hi xya,
This is my first ever post but thought i'd share my experience with you.
I purchased my one bedroom apartment back in Aug last year in South Yarra and the agent told me that the rental return was $280 to $320 a week. 6 months later, i leased it out for $420pw
Also didn't bother to use the services of an agent so also saved on their fees & charges.Good luck
