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I agree Freckle.
People have relied on Capital Growth to sustain their property portfolios and in a stagnant market people are going to have to sell because they used their capital to cover the mortgage payment short fall. This has caused an increase in properties being sold with very few buyers in the market due to financing difficulties. I know in the area I live, property prices have returned to 2007 prices. People who bought after this period have lost 10's thousands of dollars in capital.
I believe the market will be flat for a long time, but there are great deals out there if you can finance them! Buy and hold strategy is always the best if possible.
Electricity should be connected and paid by the tenant. If you're concerned about the property not being rented yet, give your agency a call/email to find out what is going on.
How much cash flow do you expect to get?
If you have the time go, but be ready for a sales pitch. You might even learn something new or be inspired.
Let us know on this thread what you thought and learnt from it (if you go).
If you know a real estate agent then they might give you access to RPdata or Pricefinder. You can subscribe to these but it gets a bit expensive. Are you looking for capital growth?
It really depends on what type of strategy you are going to use, eg, development, cash flow, renovating, flipping etc. Until you have a clear goal and objective then your just going to go around in circles. What type of strategy where you thinking of?
Seriously looking at renovations after the Block auction results and the money they lost in this market (not taking into consideration advertising)? If you take the plung let us know how you go on the forum.
If your aiming to rent to uni students then look at something like a Uni lodge. You can buy the property and it is managed by an onsite manager and each room it rented out to uni students. This resolves a lot of the common issues that Shape discussed. You may even be able to live in it because your in Uni yourself. There are generally great returns on these types of deals too.
Talk to Vic state revenue office directly to find out exactly why and what cause they have. This way there won't be any miss understandings and you can verbalise you concerns to them. Be proactive and get it sorted out quickly.
If you rent the property out you are still short $620 a month from my rough calculations. If you are unable to cover this expense and other outgoings then you NEED to sell. Even if you loss $10,000 on the sale the repayments on the loss will be less than having to cover the short fall on the property (example 10% interest on $10,000 = $100 a year instead of $620 x 12 = $7440). Cut your losses and sell!
I would also be look for another agent and definitely not paying any advertising. All the best.
Marsellos Pike real estate, Caboolture Realty or Richardson & Wrench probably have the larges rent rolls in the area so I would talk to the property managers at these agencies. Let them know exactly what you expect out of their services and confirm that they can deliver them for you. Most agencies have a you bound with their contracts though so get someone to check yours out before you start looking as you may not be able to change.
You can register with Pricefinder or RPdata. They have information on recent sales in areas, this does cost money though.
There are 3 main areas you need to focus on to sell it quickly, they are:
Price- make sure it is not over priced!
Presentation- make sure it is mowed, cleared and photographed well.
Promotion- get it on realestate.com.au and other great real estate website, put a for sale sign up, but don't worry about the paper, you're just wasting you money with that.Push in the wording for your land the details about DA and other info investors would be interested in, but remember the photos will really sell it for you if the price is right.
Why not pool your money with you brothers and buy in Sydney? That way your brothers could be paying rent/payments with you and you would still get the benefit of it being an owner occupied resident. Two is always better than one and three is even better. Only do this if you really get along with your brothers and stipulate what will happen if someone want to sell later (been down this road before!).
You really need to market your property (land) on realestate.com.au there plenty of agents out there now only charging to advertise on these sites. http://list-on-realestate.com.au/ is one example, do a google search to find more it only costs around $295. Money well spent for the coverage you get.
PPOR – Principal Place of Residence
ROI – Return On Investment
FSBO – For Sale By Owner
GST – Goods And Services Tax
CPI – Consumer Price Index (Used to work out inflation)
JV – Joint Venture
CF – Cash Flow
Tip 1/ Be friendly when you approach her.
Tip 2/ Don't top visiting her. If you do she will feel used and less likely to contact you when she does want to sell. She may also let her friends know you are looking buying giving you more opportunities.
Tip 3/ Offer a cheap rent back deal or even free rent if you really want it.My guess is that you are looking to buy her block to develop on. If so it might be worth cutting her in on the deal!
Obviously not rented through a property manager. Ring the police! She is squatting. Just be prepared for damages because by the sounds of it she won't be happy moving out.
On a moral level it probably is worth giving your friend an opportunity to find another place to live. 2 weeks is probably a reasonable amount of time. It may also help minimise any further trouble. Use wisdom!
Use a property manager next time!
Great website! I have referred it to some other investors. I can't see the post you are referring to? Maybe use the exact link.
