To all good people on the forum.
This is my first time on the forum and I have some questions regarding investing in general.
I have run my own business in secondhand gas appliances for over 12 years.During the course of this conduct I encountered the bad side of property owning. This because tennants have left hefty repair bills for the owners. (one landlord $10.000)
This was the main reason for us NOT to go into real estate investing. Now I start to think that I have been to critical as we obviously only got landlords with problems in our shop.
Can I have any comments on this PLEASE
Have a happy and especially prospourus 2005 for all of you out there
Kind Regards
Hazza52
(Harry)Harry Otter
Get good insurance and find a property manager than can screen tenants.
I have had some beauty, but all covered by insurance. The worst was for $5000. They took my doors, light switches carpets, you name it, but it did me a favour, i get a further $20 a week rent after insurance paid for refit.
Byronent
Adelaide SAThanks Byronent
That was very incureging
In the case I talked about they took all appliances, knocked a wall out because they needed a biljard roomRegards
Harry Otter
Insurance insurance insurance.
It is a beautiful and necessary thing.
Don’t be discouraged. The horror stories are few and far between.
I can also tell you have had one tenant for 7 years and his brother next door in my other property for 6. I have offered to sell them both properties but they are happy renting. They do my lawns at no cost and I don’t screw them on rent, but all in all the return is great and they watch over the other 2 units in the block.
So there are lots of happy stories I am sure most can share with you. Don’t focus on the few negative ones.
Goodluck in the new year. Happy investing.
Byronent
Adelaide SAOriginally posted by byronent:Insurance insurance insurance.
It is a beautiful and necessary thing.
Don’t be discouraged. The horror stories are few and far between.
I can also tell you have had one tenant for 7 years and his brother next door in my other property for 6. I have offered to sell them both properties but they are happy renting. They do my lawns at no cost and I don’t screw them on rent, but all in all the return is great and they watch over the other 2 units in the block.
So there are lots of happy stories I am sure most can share with you. Don’t focus on the few negative ones.
Goodluck in the new year. Happy investing.
Byronent
Adelaide SAThanks Byronent
I think, because of the naturwe of our business, we only had the bad stories.
It had held us back though.
We bought a property for our daughter to rent but she moved back in with us after a while.
So we had two options. Sell or keep. We sold.
Stupid??? I think so now
RegardsHarry Otter
I think retail properties would better suit you. The tenants (ie. pharmacies, McDonalds…) are extremely unlikely to trash the property and are usually a pleasure to deal with.
Show me a Mcdonalds premises I can buy.
Mcdonalds are in the business of real estate not burgers. They own most if not all their sites.
Residential is good to start with ,commercial I would recommend if you can go without rent while searching for tenants. It is not like you can fill a place after a week, it can take months at times.
Byronent
Adelaide SAI agree that commercial property offers fewer headaches, but there is a whole new world of learning. And banks require higher deposits.
Purchasing a commercial property with a substantial multi-national tenant is perceived as rock-solid. However dealing with multi-nationals or even big national companies can have it’s downside. They employ property managers who know every clause in the lease inside-out, and they know how to play hard ball – which they do. Mind you once the agreement is in writing there is seldom cause for concern provided you are happy, or reasonably happy, with the clauses in the lease. The important thing is to be fully conversant with the details of the lease when you purchase with a sitting tenant, or when you sign them up as a new tenant.
If you were wanting to buy a property with McDonalds as a tenant you will find they periodically come up for sale here in NZ, though invariably with a very low cap rate due to the perceived security of tenure they offer. However their stand-alone buildings often have that “McDonalds” look to them and this may make them less desirable to other tenants should McDonalds walk at the end of a lease period. Personally I wouldn’t touch a McDonalds building, as I think better value can be had elsewhere – but I possibly stand in the minority.
Julian.
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