Peter, just looking at April/May API while tidying up my magazine shelf, back cover, an ad by Cameron Bird re Cairns properties, namely Souhern Cross Atrium Apartments. They say “one 2BR apartment but can also be used as two 1BR self contained apartments boosting income streams”. I’ve noticed similiar comments a few times. When you think about it, maybe a dual keyed apartment might rent for $500 a week, but say $350 a week each used as 2x1BRs.
Anna

Hi Mosquito, glad you’re getting started. From what I read, eg API magazine, net, forecasts etc. SEQ continues to go up. We have a unit there as well and I think it’s a good area to buy but do your research and get all the info you can. Don’t forget the body corp with the units. Check your prices on the real estate sites and pick up all the real estate books from agents – the ones that are out for the taking – so you’ll have an idea of prices.

We have used several ways when purchasing property, borrowed against our home, used equity line of credit for deposits and then financed, borrowed the deposit and paid it back after finance has settled, and have an equity L/C available to purchase to a certain amount if we see a property to buy, renovate & sell. The latter we’re doing at the moment. Research and read everything on the forums & elsewhere, work our your strategy, set your goal and go for it.
Anna

Our onsite manager in SEQld charges half a week’s rent letting fee when the tenant renews for a further 6 months. I rang Dept Fair Trading Qld, was told it is legal. Seems a bit mean. Our Nth Qld manager does not charge. Our manager here (NSW) does not either.

Hi Pushpa, Yes, as the previous post , your property manager is the one to advise you on what is happening. Contact them as you said expiry of the two weeks notice is tomorrow. The agent will have to set up the Tribunal hearing, takes 2 weeks in this area, costs you $28 to apply for the hearing, and the cost of the property manager per hour from when they leave the office. Also get a copy of The Rental Guide from the agency and some of your questions may be answered on page 20. If the ppty mgr had taken out your landlord insurance you would have received the receipted document together with your monthly rental statement showing the amount deducted as having been paid. We initially did our own insurance but now they are renewed through the ppty managers. About $200 per year and well worth it. Good luck.
Anna

Hi Beetle, welcome. As a personal choice, we use I/O loans which we can convert to P & I in the future. The reason for us is that we have more cash flow. We have a couple cross collateralised with our current home, will probably refinance out in time as they are gaining equity and our home will then be free. Also have a L/C against the home and separately against 2 other properties so if something comes up we have the finance and don’t have to chase same, or e.g. an auction.

The L/C is a good idea if you’re going to buy/reno/sell.

That’s just the way we have done it in a fairly short space of time, 2 years, but just wait for the good thoughts on the forum from the more experienced.
Anna

Bit of a late reply, but I would change property managers straight away if you have not been able to sort out some refund. Any work authorised prior to your purchase belongs to the previous owner but seeing they were selling, I would imagine only urgent items would have been done at that owner’s cost The previous rental agreement should have stated to what limit repairs could be done. I work part time in ppty mgmt and always ring an owner as soon as a tenant has phoned with a problem or breakdown. The exception is weekends/out of hours when a tenant may have to contact tradesman in an emergency, and the tradesman’s details are on their copy of the lease agreement. Also, I would suggest that you keep a diary near your telephone where you keep note of each time you talk with your managing agent. I also have a file for each of our IPs from the day we paid the deposit, and a section for any notes, conversations with ppty manager. They also should have a day book where every phone call/client is entered to keep themselves covered. If you decide not to change managers, you could ask that your property manager reverses the 1 week’s rental fee that you would have been charged on your statement if you are unable to get back the other costs.

If the property was tenanted previously and the tenants left the whitegoods, the removal costs should have come out of their bond. If you just purchased the property, a final inspection prior to settlement should have picked up that the goods were there and you may have arranged for the cost of the removal to be deducted from your purchase price. You should get the original invoices stamped paid from your property manager including rates if they are paying those, with your monthly statement. I hope you have picked up a copy of The Renting Guide – your rights and responsibilities as a tenant or landlord, from the RE office.
Anna

Hi Drafty & Co, not being off-putting, but I’d be more inclined to do the first reno yourselves. Then at least you would have learnt a lot, through mistakes or otherwise. If you partner up with friends, you’d want to be able to put equal money and time into the work, and then after CGT, share the profit if you sell.

We don’t do structural work either, maybe move a wall to make a room larger, eg. larger bathroom, smaller laundry if they back on. Our renos have been mostly cosmetic, one we put a great second hand kitchen amongst other things, in the latest one which we purchased 14 months ago tenanted, we gave notice a few months ago and have updated the cbd doors in the kitchen which were water damaged, added a pantry, new verticals, renewed leaking bathroom, new vanity, taps, shower screen, complete retiling, painting inside and out, some lights, polished floors, gardens, cost $8000 and increased value from $140k earlier in the year to $220k. Rented at $220pw – was $180. And as was said in another post, we always pay our tradesmen when they hand us the invoice. We use the same tradesman for our showerscreens, kitchen updates and plumbing. We go to auctions as well, use a basic colour scheme if you’re going to rent the place as we find tenants want to brighten up with their own colours in furniture, etc.

A couple of years ago most of our friends thought we were crazy to start. We had our own home and another IP. Now we have our own and 10. So be encouraged and do what you want to. This forum is such a help along the way.

Anna

It might be an idea to ring a couple of the Gold Coast agents and talk to them about prices and possible rentals. I have done this at times and have found them really helpful. Ask if they can send you a copy of say the Gold Coast Property Extra which lists all along the coast, or the fortnightly Bestseller Gold Coast Guide. You can pick these up free of course if you’re up that way. Have you looked at realestate.com and clicked on Coombabah? I just did and there are over 150 properties under $300k listed for Coombabah & of course surrounding areas including Runnaway Bay. Click on Under $200k as well and there are 50 odd. Looking for a house or unit?

I just rang about a 1br unit $155k at Runnaway Bay, rent $175 but it was sold. The latest API lists houses at Runnaway Bay increasing 22.36% and units 9.25% in the 12 mths to March.

Talk to any of the agents and the South East Qld/Gold Coast Corridor is still going ahead. People can commute to Brisbane for work and there is so much building going on. We were up there in May. We’ve just listed a 3BR townhouse we’ve had for a few years in the area, focusing more on houses now.

Anna

Hi Jessica, you seem to be doing wonders. Hubby and I also renovate, and and do everything we can ourselves. One son is a builder and will do the tradesman things if we need help, eg. he did the waterproofing in the last bathroom. We are both semiretired so have jobs as well as some spare time. We bought a house last year for $120k, left the tenants in for a year, and then decided it did need work including the floors. As soon as the tenants had left, we were there with our pen and paper listing what we had to do, estimating costs and the time we thought it would take. This particular house is about 25 years old. Now valued at $220k.

We pulled out the carpet first, took down all the old curtains and anything that wasn’t going to be used – except for a purple painted kitchen cupboard that was a good work bench for the time.

You can hire all you need in the way of equipment to polish your floors from hire places, but first you need to prepare the floor. That means taking out one by one with pincers/levering out with narrow screwdriver, every single staple from the carpet fixing and every one of those nails that come with the edge fixing strips of the carpet. If you don’t, your sand paper will be damaged during sanding. You will be surprised how much comes off the floor with the sanding so as someone said, close off rooms you are not doing or else hang up tarps. You also need to punch every nail with a nail punch, and after punching them down, fill every hole with putty. Get a linseed oil putty and your paint shop will sell you a tint/stain to mix into the putty. I have done this bit with two houses while hubby is doing other things. If you have to get rubber off where a rubber backed carpet has been stuck down, get all the excess rubber off with a paint scraper, and then do sections with turps and the paint scraper – it is time consuming but worth it.
Only thing is the rubber stays in the grooves between the boards but looks fine. Not doing a $1m reno.

Cost of hiring is good, eg $130 a day plus your sanding sheets and this ‘package’ includes the edge sander. We pick up say 8am, return 5pm. We have used both Wattyl and Cabots estapol, and did one house matt finish and one gloss, choose turps or water clean up. You have to mix the estapol with hardener, say 4ltrs/4ltrs, but mix in small portions in a flat tray or some sort. You get the mop applicator from the paint section of your hardware. The last house was sanded in the day. You have to sweep/vacuum over & over, including your walls as if any dust is on the floor, it will show up in your initial coat of estapol – learnt this!! You might then need/want to resand before the next coat. We didn’t as the specks wear off in time though and will probably be covered with furniture, or rugs, etc. You are able to apply the second coat the next day.

We have hired from Beavis here in Maitland area and use Amazing paints here and in Sydney as we have found the staff very helpful and the prices good. Good luck with all your work.

We’re starting on a unit reno at the end of the month.

Anna

Powmow,

At 20 our daughter bought her first property in her name and father’s name – it was easier to get the finance that way. So that may be an option. It has since been refinanced and is now in her name only. She made all the payments etc. Value has doubled.

Last year she bought and we all renovated a unit in Sydney where she lived for 12 months. Midyear she made an offer on a larger unit, sold the reno’d unit in one week. We painted and recarpeted, and put up light fittings to that unit in a few days. Made about $40k equity straight away. She is 27, works full time, and part time uni. I hope this encourages you. All the best.

Anna