hey everyone.
I’m very new to investing in property I’m from Brisbane and I’m looking for a Positive cash flow property at the moment Mt Isa looks like the best place although very few have tenants in them that are for sale. I’m just wondering if it’s very important to buy a house that is already tenanted. I feel as if it must be tenanted manly because I’m new to this and because Mt Isa is so far away.
what are your opinions on this?
having a tenant at time of buying
is not really relevant in my experience.
The current tenant can leave tommorrow and you
can not get a tenant.
then you can gert a property with no tenant get a new tenant straight away and stay for years
The best thing to do is
research the area to see property vacancies in
the area AND DEMAND in the short term
AND long termHi Ko_Starr,
In your quest for a tenanted property – be aware you do not inherit someone else’s problem and their reason for selling.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
why not include on the contract a tennanted by date, where the RE agent (or their rental section) must find you a tennant by a specific date to satisfy the contract. Like the finance date.
It will make the PM work hard to get a good tennant so the agency also gets the sale!
What do you think?
[medieval]
Matt
Matt,
Not sure the vendor would go for that. If you buy a place untenanted, I think it’s the new buyer’s problem.
Ko, I bought a place recently, that had no tenant, because the vendor wanted to be able to sell to an investor or an owner occupier, and not limit her options. As soon as I said I was an investor, she got in a tenant- good for her before settlement, and good for me after settlement.
If the places in Mt Isa have no tenant, you might wonder why… are the places “tenantable”? Mt Isa is a place that has been mentioned as having one of the biggest rental yields in Australia:
http://finance.news.com.au/common/story_page/0,4057,10319145%255E14302,00.html
…however, if you have no tenant, then you have zero rental yield. Check out the rental history of the IP, and ask a RE agent (not the one who is selling to you) to do a rental assessment on it.
I like to buy IP’s with a tenant in place. With some IP’s, tenant demand is so strong that they have a waiting list for particular properties… but it’s a bit rare and not something to count on. Tenants are the cornerstone of IP’s, so a tenant in place can be fantastic, but as Derek alluded to, a [mad] one can mess everything up for you.
kay henry
Hi Ko_starr
Check all the agents who rent properties, see who’s most actively advertising. Request a few REAs fax/email their vacancy sheet to you each week. Buying tenanted property often comes with an unsettled tenant who has already seriously planned vacating just in case the buyer wants to move in. Don’t worry about which way they’ll jump because you rarely guess it right, just be prepared with knowledge of local agents and good PMs, and let them do it for you.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Thank You everyone for your replies. I gathered a lot of good information from it and most of it made scence.
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