Forum Replies Created
It may not be as good as you think. [
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Like Freedomfinder said, there are heaps of outgoings, like the meals provided, linenservice, sinking fund and body corp, especially the management fees for the on-site manager and administration costs and letting fees are usually high. A whole list of outgoings and they go up every year (In the contract it will probably say -I read it in the one I had- that these costs will increase EITHER in line with the CPI increases OR 3% whichever is more!!![xx(]
ALso, the manager may charge HEAPS, like $150 an hour or so if you need anything done out of the ordinary every-day managing.Also be verrrry aware that they might not have included GST in all the prices they are giving you, so if they are saying that the return will be say 7.20% or so, when you add the GST to it yourself the return will be reduced to something like 6.90% or something.
I recently looked into these units (again for the umpthiest time and the LAST time this time I think LOL) and the best return I have ever found was 6.99% and meant not CF+ for me if interest rates are 7%. [V]Depreciation, yes, but how good that will be depends on your income, of course. If you already have reduced your income through other depriciation claims or other means, then I wouldn’t like to rely on this.
I’m no expert by any means, just speaking from own experience, so you’ll have to do your own very detailed due diligence, and maybe seeing an accountant first. May be it will work for you.[] But BUYER BEWAREMy aunt lives on Bribie Island, right on the water. Properties have had enormous growth she said and are exxy now. Apparrently they’re running out of land now and there has been some talk about plans for building up higher.
We’re invited over there for next Xmas [][8D][:X] so I’m going to have a good look around on the island[8D].It’s North from Redcliff, not too far from Caboolture and only about an hour or so from Brisbane.
THere is not that much work on the island itself, a lot of people who live there are retired, this is what I’ve been told.I would go ahead if it ‘s easily fixed by spraying and removing the treestump.
I would also consider removing the bark and replacing it with cypress, termites don’t like that so I’ve been told by a garden centre. It’s not cheap but it will give peace of mind.
Please let us know how it all turned out![
]Good post SIS let’s do it again next month[
]Interesting and looooooong post, I had some pc problems for a few days, so I had a lot of catching up to do….
I agree that education should be free, also why not get rid of all the private schools and put all that money in public education.
(Don’t abuse me now, just my opinion[])About SIS’ reluctance to share some information I think that is totally up to him what he wants to share or not, and he may have very good reasons.
I think in the post about the bus tour he said that he discovered that a there are a lot of lurgers just benefitting from all the great info on this forum without being a member or ever contributing themselves or sharing their knowlegde. SO if it took SIS a real lot of time and effort to find out some great info I do see where he comes for not wanting it out in the open and up for grabs to these parasites. [:p]
Anyway he did say that we can pm him, so that’s a nice gesture.My 1 cent’s worth.(I donate the other cent to education[:o)])
I agree, for the same reason I didn’t buy this unit – I didn’t want to reduce my equity (LOC) by that much just for one IP. Much better to keep the LOC for deposits on several IPs.[
]SHame though, the units seem a no-worry investment as they are fully managed, also 99.8% occupancy and elderly people make great tenants so I wouldn’t need landlord insurance, just contents.
Well not to worry we just will have to keep searching for something else.[
]No Chan, I don’t think there is. I have tried (last year) to buy a unit in a retirement village and getting finance is hard. I think you can get a commercial loan, but I think even that won’t give you 80%. 60% more likely.[
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Most people must be buying them from a LOC, I figure.Do a search on this forum on retirement villages or aged care units and you will find some more info as this has been discussed in the past.
Regards!
Is your property in a really small place with only one PM? Otherwise I would just sack them and let another PM take over.
May be you can ask on this forum if somebody knows of a good PM in the area.I love having a PM, apparently there were lots of little things, small repairs the tenants wanted fixed the week before Xmas. I never knew anything about it until last week-my PM took great care of it, tenants were happy and I didn’t have any hassles before Christmas. Love it.[
]Pisces, thanks for your reply, I should have explained better. What I really meant is that, say that the property was closeby, around Sydney, we could just drive there during weekends and do some work, and also sometimes there is a quiet day like in the middle of the week or so, that he would be able to finish at say 10 or 11am, he could use the rest of that day to do work on the property so we still wouldn’t loose any income.
Also, my husband has lots of little bits and pieces left over (LOL more like a whole garage full of stuff)from other odd jobs and from our own home renovations/extension e.g. paint and timber, we could use that instead of having to pay for materials and labour if you have to have the job done by someone else.
But yes as you say, we must have quotes done before we make an offer, to find out if it’s worth the trouble. Also find out how much the property will increase in value after the renovations. It might as well be very much worth it, other people make a living out of it, so we just have to look into it seriously. [
]Same here, the ones I found are crap[:p] compared to this site. I would like something like this[^] except they talk about shares.
WOuld be so good if we could have a shares forum on this site![]
I do understand why it isn’t possible now, but NEVER SAY NEVER things can chance.Yes, this would be greater than great! But the fact that my husband is a licenced carpenter doesn’t really help if the property is a 6 hours (or more) drive away, and he’s stuck in Sydney because he has contracts here and can’t get away.
He has done some minor work on the property that we have in Dubbo, but he can’t get away for longer than 2 or 3 days, things are busy at the moment.
I’m lacking the experience to know whether a reno will still be worth it if you have to have all the work done by others.
I should take some time to seriously find out whether it will work, because it would be fantastic if that’s the case.
Thank you both for your wonderful advice.[
][]AHA the place in ****** Drive, yes I also rang the agent about this. I don’t know if it is the same place, or if we talked to the same agent, but the rent I was told was between $110 and $120pw.And it is in a bad area I was told.
I have a house in Dubbo, bought last year, but really I think the positive cashflow properties in Dubbo don’t exist anymore.
Either you’ll find a cheap house that needs lots of major work or the today’s price is too high to make it CF+.
I’m looking outside Dubbo now for my next one, (drove up there last weekend came home empty handed) still you have to be lucky to find something worthwhile.TeacherK6 out of curiousity, which PM do you use in Dubbo? Are you happy with them?[
]This is fantastic information, as usual, Simon, thanks.[
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It is all much clearer to me now.[8D]
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] But BUYER BEWARE
][8D][:X] so I’m going to have a good look around on the island[8D].
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