I am recently thinking of buying a IP in a lower -social economic areas, with quite alot of public government funded houses around. Properties around here is fairly good priced. but just wondered if i’ll get good tenants on that area? anyone has any experience with this please guide me. cheers,
blessingz wrote:just wondered if i'll get good tenants on that area? anyone has any experience with this please guide me. cheers,Possibly – there are still decent people living in these areas, but the reality is that there's a higher chance of getting a less than desireable tenant.
You need to get an excellent property manager on board – someone that will do a good job of screening tenants and will be proactive with inspections and keeping an eye on your asset.
Which area is it?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
When looking you need to know the area and the streets very well.
I have a few in Mt Druitt (Sydney). First thing I do when I see a house is look on googlemaps. Look at the street and see what the surrounding houses look like. Are there lounges on the verandahs, unkept lawns, toys all over the lawn?
Next is look up RPdata to see how many housing dept houses are in the street. The less the better. If there are too many you can have problems and may have trouble keeping tenants. I'm not saying all dept tenants are problems but there are really problem streets.
If you are still keen drive in the street at different times of the day to get a vibe for the street. Or walk through and say hi to some people. If there's an open home neighbours may be out to sticky beak. Say hi. Ask them what the street is like.As far as getting good tenants- if the house is presentable you will get better tenants. If it's run of the mill or needs repair you can't be fussy. We reno ours and always have to choose between those that want them. We have fantastic tenants.
I have personally bought 2 properties in ‘lower social demographic areas’ and waited about 5-7 years and waited for it to improve dramatically (both from a capital growth perspective and a general demographic area). You do need to ensure that the tenancy agreement is water tight. On both occasions I asked that the rent be paid on a weekly basis and I inspected the property once every 2 months. Also make sure you have landlords insurance.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
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