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Don’t get me started on renting. We have 3 IPs and we are also rental tenants. Firstly tenants are made to feel like second class citizens. When we have had to request repairs we have been told “I shouldn’t think they’d agree to that” this regarding a leaking tap that was damaging a bathroom cupboard in a 4 yr old house. The PM didn’t even discuss presenting the issue to the owner. Luckily for the owner we fixed it. I am sure if we didn’t it would have been like the TV aerial – which took us 4 mths to get. I am confident our IP PM is more competent than this – that better be as I sure pay them to be!
When I was on maternity leave and our wage was therefore halved we did things like:
More vegetarian meals
Shopped for groceries with cash then we couldn’t go over our limit
If we ran out of something in the week there was no replacing it unless it was the day to do the grocery shopping
Left all credit cards in the filing cabinet
Called up our insurance providers and asked for a better deal (generally we got a reduction)
Walked to places that weren’t too far – usually we may have been lazy and driven
Used our bicycles more
I started tutoring in the evenings (I’m a teacher)
Husband did some professional editingWe are now in a position of trying to save for our 3rd IP and also a overseas trip and again we are trimming the fat on our budget!
I live in Northgate In SA the updated area next to Northfield. In Northgate properties are about $550-750K for an average 3 bedroom place and rents are about $370. The properties in Northfield are at times selling for ridiculous prices, it isn’t unusual to see an old weatherboard (old commission often) place sell for $260-300K and then within the next few months be knocked down to make way for a couple of townhouses or a gorgeous 2 storey place. I am thinking Clearview or Hillcrest may have a few more options. I haven’t looked at either option on realestate.com but this is my impression from living in the area.
Elizabeth has been dodgy my entire life! Settled by English immigrants originally in the 60/70s and containing a considerable area of housing commission houses. I have worked in schools in Elizabeth and they are rough as guts! However, there are some areas that are better than others, house prices are still reasonable, it was a satellite city to Adelaide (originally) and it therefore well serviced, there is a high rental population. So in other words there is plenty of scope!
Cheers
Due to other costs like insurance, rates (council and water – depending on how that is structured in your region) etc, I would be looking for something less than $120 000 if it was receiving $185 a week but that is just my take on it. I always aim to pay the bills and have something left to put toward either extra repayments or another deposit. Sometimes that bit left may only be $10 but I feel it is better than having to go to work to earn the extra $10. Plus in the longer term I aim to add value to the property by minor (generally) improvements and increase that $10 surplus!
But everyone has to decide on their criteria for themselves so as long as you are happy with the decision
Ruth
We self managed when we lived in the same city but now we live 1000kms away it is easier to have a professional manager. We have properties in 2 states and live in neither state! Also there are certainly some property managers to avoid at all costs and then there are those who are onto everything. We were originally told to go with a manager who doesn’t have too many properties but I no longer agree as ours has heaps (nearly a thousand and it’s in a regional area!). There are a few property managers in the agency and I think their expertise is worth it. Also both my husband and I work full time and have a young family so we don’t have the time at this point to manage our own properties. It all depends on your situation.
Ruth
We put floating floorboards in our IP and it is really rather easy once you get the hang of it. It looks great and as we bought heavy duty ones it has ‘weathered’ tenant treatment very well. Our other IP has original floor boards and that was a lot of work sanding years of paint and general abuse off and then applying varnish. I’d go with floating floorboards or carpet in future. We rent ourselves (preferring to use extra cash to invest in IP) and as a tenant I actually prefer floorboard or tile over carpet. Generally I have found property owners tend to skimp and lay crap carpet which stains easily. Builders carpet is a better option.
You do however have your assets protected against someone suing you as an individual don’t you? I know some people who are in the medical & law professions who purchase everything in a trust as that way they own nothing the trust does, so if they are sued they can’t have their assets taken from them.
I too am trying to decide what to do re trusts or continuing as is. Main reasons being our 3 properties atm are not PCF because two are slightly negative and we negatively gear losses against our income. Once is positive but only by $150/mth so hardly generating much income. I do think that if I had a few positively geared properties I would want them in a trust.
Ruth
