If you want to self manage you need to make sure you are aware of all the rules and regulations.

My only concern is tenant checks. Bad tenants target self managers as there aren’t often checks in place.

I think it’s fine if you have 1-2. It can get a bit onerous if you have multiple, but then again you are saving more on fees.

It depends on yourself as well. Are you able to distance yourself from tenants personal issues or will you get attached and feel you can’t put the rent up because they just had a huge electricity bill (for example). If you have a good tenant everything can be peachy. But what happens when things go south. Do you know the procedures to go to tribunal etc?

Sometimes it’s better to keep it business like. Personal decision.

Yes you are liable for insuring your property.

NO- It is NOT covered by Strata. Strata insurance is for building only. You need to insure everything inside the unit. If you or your tenant cause damage you are liable.

You are also liable if your tenant or a visitor injures themselves in your unit. The main reason I get landlord insurance is for the public liability. You risk losing EVERRYTHING if someone is injured or dies on your property.

Strata insurance only covers public liability on common ground (not IN your unit).

Yes there are a lot of costs associated with property investing. When the costs are higher than the rent it’s a negatively geared property. You can claim the loss as a tax deduction.

If the property is near new or has had a major reno you will have good depreciation, which will lessen the costs out of your pocket.

Calculate carefully what the costs will be BEFORE you purchase anything. This is the reason 99% of property investors only own 1 property. Too many negatively geared properties drains your pockets very quickly.

By increasing your yield you won’t have as much drain on your pocket. You may be able to do this by renovating the property so you can put the rent up or put a granny flat in the backyard.

Keep reading and asking questions. There’s a lot to consider.

Why are you looking at those areas now? Vacancy rates are only part of your problem. Don’t get me wrong I love Western Sydney, and this boom has been kind to me.

We are at the peak of the boom. You are unlikely to get any capital growth for 10 years and may even get some negative growth in the next 5 years.

Not a good time to be buying there IMHO!

Blackhotel I totally agree.

Jacqui makes some good points as to why.
I have a unit in a big block and notice one agent in the area continually advertises rents cheaper than standard. I’cve pulled them up on it when they try to get my business.

As Corey said- it’s not just agents. I bought a villa and went to the first strata meeting. Got chatting to a couple. I said mine was rented at $250 which was under market. I put the rent up to $285 straight away then up again the next year. They said theirs was rented at $235 as the tenant had been there a while. I said that’s crazy and throwing money away. After a little while they then said they had a 3 bedroom villa. Mine is only 2 bedroom. CRAZY!!! Why would you subsidize a strangers rent to the value of $70 a week!!!

Have you checked the settings? Sometimes people set the temp lower but forget to switch it from heat to cool.

If it’s on heat, no matter how low the temp is, it won’t cool.

Try that then if no luck, ring the manufacturer/installer as mentioned above.

You don’t want them to come out only to discover there’s nothing wrong with it. They will charge you if that’s the case.

It does seem strange. I would assume that if you give someone notice they will move out in the given time. That’s what usually happens.
Or do they know something we don’t ? You’ve got to wonder.

He’s baulking at possibly losing $600? in 2 weeks rent.

Obviously doesn’t really need the sale. He has to give 30 days notice so they’d have to be pretty organised to be out before that time.

So he says they may leave early, then he says they may be there longer as they won’t have time to move out?? Maybe you din’t pay as high as he thinks he can get??

Yes. It’s payable at the same time every year based on what you own at the time.

There can be exceptions, like if you’ve sold it but not settled.

You could ring them though to ask. I doubt you’d get a refund though. Do you have another PPOR you are claiming exemption on? Are you going to give them extra to pay for that?

• This reply was modified 9 years, 8 months ago by  Catalyst.

Are talking about splitting the house and you occupying part and renting out the other part?

If that is the case you need to submit it to council and you will be required to put a fire wall between the 2 residences to make it legal. Without that, as you say, your insurance will wipe you. To install a second kitchen you should get council approval but just doing this will not make it legal to rent that part out separately. You may be able to have a relative stay in that part.

We have done this. PM if you want more details.