Hi Team
The unit above mine has finally sold for 159k…I paid 112k for mine I bought the place totally under market value. I have done some renovations and have discussed that in another post. The time is getting close to rent the place out and I only have a couple of things left to do to touch the place up. Now the question I have:
The other units in the block are renting between $160-$170 per week. My place is the only one with aircon and security screens through the whole place. Now if I say put new blinds in through the place and say a dishwasher…will that give me more rent or just increase the value? or both. I think that the market will only give back so much rent doesn’t matter what you do to the place because of the other units….is that a wrong theory? one part of my brain tells me you add value so you can charge more rent but the other half is saying spend the money on something else and you have lost the plot?Thanks for the feedback
Cornel
hi cornel
i think its hard for us to answer this question, i think the property manager would be the best one to talk to, i think it should add more rent but it depends on the rental demand for your type of property. I’d think you could always ask a little higher and drop it back if you had to. the other thing is you may keep the tenant longer if your property is a bit better than the typical unit in the area.
Well done on a great buy, $47,000 equity straight away fantastic[
], and some negative people are talking doom and gloom and other are out there making a killing well done.
regards westan
Well done on a great buy, $47,000 equity straight away fantastic[], and some negative people are talking doom and gloom and other are out there making a killing well done.It’s only a killing *when* you sell
Hi Cornel,
Adding value is good but don’t add unnecessary value. A dish washer is an expensive item and may need regular servicing.
C2
“Is it true the more you owe the more you grow until the bank steps in?”Hi Cornel
I agree with westan that you need to talk to your property manager. We always add aircon and dishwashers because of the areas we rent in and the type of people we are trying to attract. And yes we can normally get a little bit more in rent for them.
ErikaI don’t think it’s only a killing when you sell. I refinance to grab that equity for other investments, and can ‘effectively’ have just got a property for ‘free'[
]Cheers
Mel
I don’t think it’s only a killing when you sell. I refinance to grab that equity for other investments, and can ‘effectively’ have just got a property for ‘free'[]In theory, yes. However, whether that investment makes you any money or not is a different story. Certainly, many investors (and I use the term loosely) recently have misused their equity to negative gear just before the market is set for a correction, and when vacancy rates and rental returns are unfavourable. Look at auction clearance rates and price growth since the reality of increasing interest rates has hit?
One of these days, the banks will re-write the rules and start making margin calls on property investments….
Let them bring on the margin calls. I will have no problems. If I refinance to get my free property, it’s hard to see how I will get into trouble when I’m leaving 20% equity still untouched. I also do not need to ‘spend/invest’ that money I have pulled out. It can sit in an offset account until there is something I do wish to buy that will make me money, and as Westan pointed out, they are still out there. It’s not just the interest rates that have cooled the market a bit, it was bound to happen anyway, nobody could sustain the bull run forever.
Cheers
MelHey Cornel,
how ya doing man?
try this put the place up for rent at russo, lots of people there have money and they dont care how much the rent is.
cheers man
s.i.sHi SIS……it’s to far out for people to use that goes to Uni or College…good idea though but it’s 23km out of town.
[8D]
Cornelhi all
sorry cornel
this is off the topic, but i also have to challenge kkowalsk with the idea you only make the killing when you sell.
if the assett has gone up in value then you have in effect made the money the value is added to your net worth so your net worth has gone up.
if i bought shares that went from $1 to 10cents i have to say i’ve lost this money on them the fact that i choose not to sell doesn’t alter the fact that they have lost value.kkowalsk
one of my favourite quotes from Kiyosaki’s is “the profit is made when you buy not when you sell”
so once again well done Cornel[]
westan
regardsYea I am pretty stocked with the results so far. That’s a pretty good profit if I wanted to sell the place now but will be a very unwise move I think. At least I know that I can use equity and use that for a deposit on the second place. Hopefully I can do my next deal early next year. It’s all very exciting for me and I learn allot and you guys have been great with your opinions and advise.
this is off the topic, but i also have to challenge kkowalsk with the idea you only make the killing when you sell.
if the assett has gone up in value then you have in effect made the money the value is added to your net worth so your net worth has gone up.
if i bought shares that went from $1 to 10cents i have to say i’ve lost this money on them the fact that i choose not to sell doesn’t alter the fact that they have lost value.LOL. One of the reasons for my comment was that for the last couple of months, I’ve been listening to my girlfriend bragging about the quick rise in some of her shares. Week in, week out, she’d tell me how much they were worth. I kept telling her, ‘sell them, the run can’t go on indefinitely’. She woudn’t. Have you seen the market over the last few weeks??? LOL. She’s now wishing she had after seeing them back to where they were 3 months ago.
Westan, here’s one from me… ‘don’t count your chickens before they’re hatched’ ;P
>>will that give me more rent or just increase the value? or both.<<
Cornell, doing the place up will certainly make it easier to find a tenant if not producing more rent.
Pisces133
kkowalsk
yes and you don’t go broke making a profit, but i still think Cornel has done well.
how do you work out the value of your assetts?
i value them at current market value never the price i paid for them.
westan
], and some negative people are talking doom and gloom and other are out there making a killing well done.
]
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