Forum Replies Created
Thanks thecrest, very helpful info, I actually called consumer affairs and they've given same advice to me. And good idea about the movie tickets.
Peter
Thanks for your advice Danny, yes it is body corporate who ordered the work. I will try communicate this to my tenant.
Thanks
PeterThanks Scott for your detailed reply. I agree with you the cleaning is more than reasonable. As for the actual work, it's to replace the faulty window frames and mostly being done outside the building and it doesn't take longer than a day to replace the window frames for my unit. The tenant hasn't communicate this issue until it's all finished now and that's why I haven't dealt with this earlier.
I've also checked the definition of quiet enjoyment from Consumer Affairs, and it seems it only related to the following issues:
Quiet enjoymentTenants have the right to privacy. Landlords and agents usually must not enter the property without getting your agreement not more than seven days before the visit. They must not enter in an unreasonable way or stay longer than needed.
Any further advice is more than welcome, I only want to resolve this issue happily and fairly.
Thanks
PeterThanks Terry, very good info.
Thanks Russ,
That looks like will help the cap growth for the suburbs alongside, also the airport development plan will help the surrounding west suburbs, I was looking at Sunbury cause I was only offered properties by an agent. Looks like Melton and surroundings are interesting. I haven't decided which way to look for now, need to talk and listen more, currently also looking at Frankston. I would be more than happy to chat with you about PI and I will once I decided where to go.
Johnny
Russ,
I checked the sales price and growth on RPdata.com, they have free basic suburb reports. And I checked rents on major real estate sites like domain, realestate.com.au and realestateview. Hope this helps. So you reckon the transport is the major factor that makes Melton more attractive then? What is the new by-pass? where can I find out more about it?
Thanks heaps,
JohnnyThanks a lot Fozzy and Russ, your experience and information are really helpful to me.
Russ, I just did a quick look at the data and what you said is right, but why people want to go even further to Melton and paying higher rent there? I haven't been to Melton so I don't have any idea.
Fozzy, thanks again for all the answers. Yes, I spoke to local agents and they told me pretty much what you said, higher rental demand ATM but a lot more properties are coming as well. They cannot predict the growth and they told me average growth is 9% for past 10 years, a little higher than your number, so I guess that's accurate. I'm also look forward to talking to a buy's agent, can I known which one you engaged?
Thanks,
JohnnyFozzy,
I don't live in Sunbury as you guessed and I do have questions for you:
– Is it a good place to live? why did you choose to live in Sunbury?
– What's the most inconvenient thing living in Sunbury? Is it just the transport and distance?
– What's the weather like there comparing to inner melbourne?
– Where can I get authentic data of Cap growth in Sunbury?
– Why did you choose Ipswich instead? Is it because of the low growth?I choose off the plan place so I can have my money a bit longer and possibly more time to look for better properties while have this one secured if I can't. I prefer new house because of depreciation. The property I'm considering is around 260k.
I'm not sure about the big growth but tend to believe it will. Last year's 1% growing is horrible but innormal I think. What about the average growth in 10 years? Maybe last year is the bottom of the curve, maybe from last year till now most investors only interested in eastern suburbs…
Those are really helpful information and I will do some more work on it, thanks.
Johnny
L.A Aussie wrote:Hi gaga,you sort of anwered you own question in part; my concern is all of the above, AND you are going for a 100% finance deal. This is a very dangerous level of exposure for your first deal.
One of the big dangers with "off the plan" purchases is buying at the right price in relation to the market. All new projects have a profit margin built into the purchase price for the developer, and quite often these sorts of projects are bought up by investors. The problem here is if they get into trouble, or there is a shortage of tenants, or both, they have to either sell, or drastically reduce the rent to get a tenant, and if you are also an owner in the complex then it directly affects the value of your unit and your rent returns should you need to sell or find another tenant. At 100% finance this is very dangerous.
This scenario happened in Melb with the inner-city apartments around 2003-04. Many were re-sold at big losses because there was an over-supply, no tenants to be found, so the rents dropped, many investors couldn't fund the extra neg cashflow and had to sell.
The SECOND buyers were the ones who did well.
Don't go into this deal purely for the tax advantages. They are the icing on the cake. The deal should stand on it's own before you apply the tax benefits.
What is the rent return? Is it at least the same as current loan interest rates? Check the actuals against other existing newer complexes in the area.
What are the comparable prices of a 5 year old complex (or younger- but not brand new) in the immediate area? This is the true value of a unit in the area. Brand new ones are invariably over-inflated, and if you have to sell, your unit is second hand and only worth what the existing units are worth in the area.
Lots of Depreciation and tax benefits are nice, and what I look for, but they only soften the blow of a loss; they won't always cut out the (cashflow) loss.If you have a poor rent return (less than current loan interest) and are planning to buy and hold, have a 100% finance, and there is limited cap growth, you are going to be out of pocket (even after the tax benefits) for a long time to make no money. Not my idea of investing.
Thanks heaps Marc, I'm really happy to hear some good points of view. Yes, they're my concerns. I don't know a lot strategies for now and I only just finished Jan somers's book so pretty much that's my strategy. I'm open for different strategies if you're willing to share. And can I ask some further questions to your comments? Thanks in advance.
What do you mean by 100% finance deal?
Your explanation on the risk is very solid, but I really don't know what options I have to avoid all those, to buy in inner city or buy an old second hand property? I don't really want to buy an old house because of the possible maintenance. I want to buy in inner city but there're plenty rich ppl ATM pushing the price higher and higher. I can put all my money in and get one of those second hand unit that have high rental guarantee but that'll left little space for me to head on for another property shortly.
That's why I go to Sunbury and trying to be a SECOND buyer in near future.I know the tax return should not be the major reason for a deal, since I really want to get something back for my huge yearly tax, and doing -CF is the only way I know.
How do I check the actuals against other existing newer complexes in the area? Do I ask the agent or developer? They gave me numbers makes me smile. Are they actual enough or is there some other way to find out?
How can I make sure on a deal that I'm not going to be out of pocket (even after the tax benefits) for a long time to make no money?
I checked some older houses and they're currently selling at a price that's 1~2% lower.
Another thing is, there's still some time before settlement and I don't need to put any of my money in till then.
Thanks again Marc, I know I ask a lot but I'll never get answers if I don't, I could do learning and research for years before I start but I'd rather take the first step even if it's not the best step I could have made. Willing to hear more of your comments, really helped my learning and knowledge.
Johnny
Thanks for all your help.
oneiricer, I'm fully aware of your concerns and they're actually mine as well, I know the agent is likely to say that but I really don't know how to double, triple check the information, can I have any help on this one?
Also, the sun issue, a few ppl told me that already, I admit that and If I were go live there my reasons would be cheap rent and lifestyle, currently the medium rent is around 200/w based on my research, for the property I'm considering, I'm thinking no less than 250/w will make me happy; You can certainly find similar lifestyle in the east for a big family but it'll cost almost double the rent, my fairly rich friend does that cause he can afford to so. There's Sunbury station 10minutes away by driving and taking the train to CBD costs you no more than 25~30minutes.
Thanks again and good luck for your friend
Johnny
