Forum Replies Created
Redwing, not sure if I understand what you are getting at…but anyway…
The wife and I renovated a 3×1 house back in ’97, only our 2nd IP. 6 weeks of back breaking work, with lots of tiring 10 to 12 hours days on your feet and sweating your things off, trying not to harm the two toddlers around your ankles with nails and exposed boards and holes and lots of poisonous paints etc. Next door neighbours used to lean over the fence and joke that they could never do what we were doing.
Came up looking fantastic – but then – who cares ??
After crunching some numbers, we found if we paid ourselves $ 20 / hr the entire exercise cost us money. Knocking that back to only $ 13 / hr meant that we went nowhere.
Lovely residential tenants were signed up and proceeded to trash it – just for a change.
We decided to sell…headaches weren’t worth it. Next door neighbours tricked us with a “nominee” offer to buy and got it for a song. Drove past the other day and it’s back to an overgrown hovel.
We learnt alot of lessons with that house, the most important of which we stick to religiously…don’t buy houses…or anything else where people have a tendency to live.
What price range are you looking at and what % deposits are you putting down to get +CF in Perth.Price ranges vary from expensive to outrageously expensive.
I put nothing into the deal, except residential equity. Borrow 100% of the purchase price plus all costs. They are +CF on this basis. This means that they are typically yielding more than 7.7% nett.
Any other basis (like 10 or 20 or 30% deposit) and the IP really isn’t +CF…or to my way of thinking it isn’t.
Are you kidding me…you want to be wet-nursed by the Owners over some piddly flyscreens ?? C’mon Adam, stand on your own two feet, you don’t need to be held by the Owners hand on this one.
I looked for some xyz legislation where it stated that the Tenant wasn’t allowed to whinge over such minor details, but alas, with residential, there is no such thing.
I must be one of those small minded Owners that Michael refers to because I agree 100% with the Owners response. (I read your post to infer that the Owner flatly refused after being passed on the request from the caretaker, not the caretaker flatly refusing your request directly)…but anyway…
Putting our “what’s in it for me” hat for a minute, as Tenants have a want to do all the time, I don’t understand why you are asking something to be added to the property for your personal benefit after you have signed the lease in it’s current state ??
If you costed it up and it came to say $ 300, would you chip in or be happy to put up with the mozzies ?? Would you pay $ 10 p.w. extra in rent for the Landlord to install them ?? I think, based on my experience with residential Tenants…the answer is always no way on all counts, the Landlord is supposed to just pay for everything and be happy that you even grace his property with your presence.
At the end of the day it’ll boil down to how badly you want to stay in the place. If this very minor detail (compared to location / number of bedrooms / quality of kitchen etc) tips you over the edge you were probably going to leave anyway.
Is there any recourse for you and your wife ?? Absolutely…this can be solved to your utmost satisfaction within the day…pay for flyscreens to be installed out of your hip-pocket and enjoy a pleasant sleep.
Remember, this apartment is a box for the Owner to make money on. As a Tenant, it’s your home…make it your home, don’t sit there and compromise your homelife over a few hundred bucks.
Our group doesn’t invest in this type of money box for this (plus 99 other) similar reasons. This is one of the straws that broke the camel’s back – if you will.
As for the miconception that Landlords always charge top dollar…have an educated guess at what the gross rental yield you are paying on your place. Are you sure you are paying top dollar…try 3.5 or 4% gross, tops ?? She ain’t big bikkies Adam. You are probably renting the brand new apartment for a screaming bargain.
The Lease you signed was a business contract, not some frivolous “click my fingers and the Landlord will come running at his expense”.
Can ya sort of tell I don’t like residential tenants ??
“Play the ball – not the man” gents.
A few of the above comments wiped.
John – Del asked a pretty good question. Do you have any data to back up the numbers you speak of. Of course you are not obliged, but if you feel the need it’d be good to see.
Cheers.
OK gross, I’ll remember that for next time.
You better hope that no-one joins the forum with the name “a” or “the” or “I”….you’ll be hooped. [biggrin]
Umm, we aren’t very brave or clever, so all of ours are within 7km of the Perth CBD.
The intent in the future is for the dragnet to be reigned in severely to be within a few hundred metres of the CBD.
Buying.
Hi avranjes,
You haven’t mentioned why you are looking around the Armadale region, but I reckon for 200K you might be able to pick up one of those little 1 bed units in Mount Street right smack bang in the middle of Perth.
I mention it only in passing and have no clue as to them as an investment.
If you are a “I want some land” type of investor, obviously this ain’t much chop.
I reckon if you looked hard though, you’d be able to pick something up that would get you $ 320 or $ 340 per week after all property expenses.
$ 150 p.w. return is a pretty low bar you’ve set yourself, IMO.
Hey McHenry,
I’ve had that conversation with the CBA before regarding that matter.
It all boils down to their squirrelly CBA computer over in head office in Sydney.
The guys running it over there must be smokin’ that left handed tobacco, ‘cos I’ve been charged amounts that exactly correspond to 26 days and/or up to 34 days.
When questioned, the answer came back as “It’s just a system process IT thingy in the Bank’s computer and we don’t really know why, but we suspect it has something to with it ruling off the month’s at C.O.B. last Friday’s of the month type of thing.”
After I picked myself up off the floor from laughing so hard, I put it in the same basket as “I’m sorry, that’s just our Bank Policy” type of statement.
If you add up the months it eventually evens itself out, so you don’t lose out.
You’ll find you have more productive things to do than butt heads with the CBA computer system…an Act of parliament wouldn’t even help.
Well done sq…congratulations.
You know, there is a fine line between being a skite, being confident and just telling it like it is.
I don’t think you are skiting off at all, but then I don’t like people who skulk around deliberately hiding their light under a bushel.
Onya. [biggrin]
Yes…all in the Perth metro area despite the bleating that they don’t exist.
We’ve nailed 3 good’ns this year. Looking at 5 +CF IP’s currently (all within 0 to 7 kms of Perth CBD) and should have the 4th and last for the year under contract before year’s out.
All but one of those five meet our prime criteria of the dirt being at least 85% of the value of the prop.
It’s all good with the goggles we are using to view the ‘property market’…whatever that gross general term really means.
PPoR……0%
RIP’s…..64%
IIP’s….104%…and the bank has said whoa back…but that won’t stop me.It’s probably not relevant to you guys wanting to buy now…but…thought I’d have a rant.
I was born and raised in Geraldton, but left at the age of 6…and haven’t been back since…so my info on Gero is a tad dated but if you’ll allow I can detail for you my parents experiences ;
1970 – Arrived from the farm and immediately bought a 3×1 fibro in Rangeway (yes, yes, humble beginnings for those that know Geraldton suburbs). Cost $ 11K. Deposit was $ 1,500 with a $ 9,500 loan. I don’t know if it’s factually accurate, but Dad said the mortgage was $ 29 per month.
1973 – Went halves in a beach cottage somewhere for $ 8K, but the ‘other’ half continually trashed it and they sold it for $ 14K in 1975.
1975 – Bought a pretty swisho 4×2 brick and tile in Allendale for $ 35K. Shifted into this and rented out the Rangeway house for $ 35 per week. Rent from that one paid for both mortgages.
1976 – Tried to buy 10 acres with ocean views up at Wongthella (or something like that) for about $ 19K, but the Bank Manager refused the loan. The Bank Manager then went ahead and bought it with his wife and made a killing. Dad was a bit dark over that one for years to come.
1978 – sold everything in Geraldton to buy our PPoR in Perth for $ 63K. Definitely not a good move.
Lessons learnt re: Dad’s mistakes put into the memory bank and doing the opposite has served the wife and I well.
1. Only sign up Lessee’s that don’t whinge. There is heaps out there.
2. Instruct the caretaker not to call you, and see how they go spending your money as opposed to calling you and letting you solve the problems every time. This’ll take time to discover if they are better than you or not. I suspect they, having hundreds to caretake, as opposed to you, who are only interested in yours, won’t be as good.
Then you’ll be in a position to weigh up what the phone calls and hassling from the caretakers is worth.
No…R U ???
100% of our tenancies pay 100% of their own water bills.
50% of our tenancies pay for everything else as well to do with the property…except the mortgage of course.
I believe a day will come when residential tenants are required to pay all outgoings…it’ll come one day…you just need to ask yourself if you are prepared to wait before they change the RTA and get rid of those absurd Tenancy Advice bureaus.
We decided we couldn’t wait that long.
I guess you are in this situation because you either didn’t bargain hard enough at the start of the Lease, or just let the caretaker fill in the paperwork for you without paying enough attention to what they were doing. Which one was it ??
Hiya 1140,
I can’t speak for anyone else on the forum, but I do not think it would be accurate to assume that +CF investing is impossible or even difficult.
Our group has purchased 3 titles this year, all of which are cashflow positive. We’ve spent a grand total of 9K (mainly on bobcat and truck services) on the 3 titles getting them to a point where Lessee’s are agreeable to sign up.
We are currently looking at 5 titles that are all +CF, and should have another one under contract but not settled by the end of the year.
Our outlook for the near term is extremely rosey, given the upsurge in mining and general business activity, which is also underpinned by the strong capital growth experienced over the past 18 to 24 months in the real estate market. I just wish the market was always like this.
Happy days all round.
With no kids, no wife, 2K cash in my hand and a whole bunch of time I’d choof off to Europe backpacking for 4 or 5 months.
You’re absolutely right Don. I’ve been feeling a bit off colour lately…but I’m sure I’ll get better soon.
No I wouldn’t and no I don’t.
I too have had a really bad run with PM’s over the space of 4 or 5 years trying 6 different ‘highly reputable’ agencies. They are all made from the same cloth.
We now manage our own, and everything is now happy days….both from a management perspective and also receiving 100% of the rent.
We are however, about to embark on handing over our fully leased out ‘smaller sheds’ to a PM. We shall see how they go. The big sheds we’ll keep – nothing to do with larger tenants.
