With one of our properties we have owned for nearly 4 years, the onsite manager increased the rent each 6 months by only $5, and the tenants didn’t complain. There were a couple of changes of tenant and the last people have renewed at the $5 increase.

Tenants sign a lease for X amount of rent for X time. During the lease, the tenant can be given 60 days notice of a rental increase. Not all property managers are like the above, but I think that in the case of long term tenants, a small increase is warranted to keep in line with current rentals. eg.yearly review. Eg we have had tenants in a house for just over 2 years at $170pw. You can’t rent anything much in the area for that and I think we could increase the rent say $10pw. It’s a 3br we purchased for $80000 and renovated for $8000. But seeing they are good tenants and it’s +ve we’re not going to put the rent up. It may need re-roofing in a few years, new HWS and stove by then. Have 2 other 3BRs in the area, one just relet from $180 to $190pw because I asked that the PM advertise it at that, and $220pw. When we bought these houses, we knew we wouldn’t have a problem should rates rise – that was one of our strategies.
Anna

Hi Glenn,

Had a busy weekend. I’ll email you and let you know about our renos. I’ve posted a bit on the forum and don’t want to appear to be duplicating it all.

Anna

Hi Denise,

Airfares and accommodation are claimable – keep your receipts. Also if you drive, mileage is claimable as well. Keep a diary with everything relating to your property so your accountant has everything at tax time.

Also going to Q shortly, a few days to inspect, including 2 we have not yet seen.

Anna

Hi everyone,

I agree with the above. Auctions have become rather theatrical – a bit like Parliament!! I was interested in a 2BR unit at Ryde that was going to auction today and which was expected to for a little over $200,000 but couldn’t make it. Agent said it was really bad. Anyway, it sold at auction for $285,000. It needed a complete reno, paint, kitchen, carpet, bathroom. Not a good buy.

Anna

I keep a manual file for all of our properties which I start as soon as we pay the deposit. Also has a photo or in the case of internet purchase, what I have printed out. I separate the file into sections such as purchase/settlement, bank,
insurance, property management, and pages where I note any phone calls with managing agents or anything else relating to the property. I find I refer to these files almost on a daily basis as there is a lot of paperwork, filing of rental statements, accounts, etc. Always keep an A4 size diary on the phone table and any bills that have to be paid are written in and highlighted if I haven’t scheduled them on the net or the managing agent isn’t paying them.

I bought the Power over Money last year, ran out of time with work & renovations but intend to set this up as well for the accountant next year.

Anna

Hi Glenn,

Good to see that you’re keen to start early. You might consider a reno on a unit as they’re cheaper and easier to renovate. We have done two in Sydney in the last year, and with the first, as soon as we got the keys in the afternoon, we pulled up the carpet, cleaned the walls and had a coat of paint on before midnight, had sleeping bags & slept on the floor. Good fun. Measured and ordered a kitchen. You can find good prices and that includes at the auctions, you need to know your measurements and have someone who will fit it and maybe cut down the bench if you can’t do that yourself. Bathroom needed a new basin, mirror. Installed timber venetians and all new light fittings.

Similiar situation with the second. It’s amazing what new carpet, paint and light fittings will do.

Have recently renovated a house. Some of the kitchen cbds were broken & of the old chipboard as were shelves which were water damaged. We replaced these, have a kitchen manufacturer we use and he will cut what we need. He had a pantry not used from another job so we got that cheap, matched the door and installed that. Retiled as the tiles were cracked and of all things, were patched with several colours and sizes – horrors.
The bathroom was badly leaking in the house, stripped and renewed that. Totally painted inside and out, valuation before by bank $140,000, after $230,000 and under $10,000 in costs.

We helped our daughter buy her first property in Sydney at age 21. It was purchased in her name & her father’s name at the time. Hope you get a good deal soon with your parents’ help.

Anna

Jessica,
ou’ve achieved a lot in a short time doing up your house. I’m really sorry there are people like that who just destroy someone’s dreams. I’m sure everyone feels for you, and we know you’ve got the strength and motivation to keep going. We are usually a bit nervous about locking up and going home at the end of the day. Last house we took all the power tools home in the ute, left as little as possible, the old radio, elect. jug, and of course building stuff, tiles, paint, etc. Keep going – you’ll do well.

Anna

I believe SEQ is still a good place to invest but really check it out carefully. Don’t forget you will have B/C as well as rates if you buy an apartment and that can be probably anything upwards of $25 a week, a lot out of the rent. Some of those big towers in Surfers are very large B/Corp rates.

You would need to be aware of just where the area you are thinking of is. Some marketers say that areas such as Coomera, Ormeau, Helensvale etc are the Gold Coast and southern buyers tend to think sand and surf. But they are within easy travelling distance of Surfers Paradise and the tourist parts, and are in the Gold Coast corridor – between Southport & Brisbane. We’ve just listed a townhouse we’ve had for three & a half years at Upper Coomera with good rental history, onsite manager and $5 each 6 months rental increase.

Have a look at realestate.com and type in all the Gold Coast suburbs and you’ll be able to see what sort of properties and prices are available. Then ring the agents and talk to them, not one or two but many to get a feel of the market and rentals and whether permanently let or holiday.

For what it is worth, I’d put $20,000 in short term deposit at 4.75% at least for 3 months, gives you time to do your research.

Anna

Redlynch is a pretty popular suburb up there, about 15 minutes drive from CBD, but maybe ring up a couple of agents in Cairns and say you are interested in purchasing property round the Redlynch area, just ask their opinion. I have found most Cairns agents helpful. Have a look at houses in the area on realestate.com, get a map of Cairns area and you’ll see where it is. We have 5 properties in Cairns, purchased since the end of last year. One unit we have cost $95,000 furnished and we get $250pw rent.
Anna

Bellasmum & JBC, we went to an investment seminar a couple of years ago in Newcastle put on by Sast Accountants on the central coast. Found them very informative and now with all our IPs, they are doing our tax this year. Ph 43961022, Sean James, and they are easy to find at Toukley.
Anna