Forum Replies Created
I may be a bit late with my reply but found that by giving each property a job number that I can track expenses and income that way!
Is there some legal obligation to install smoke alarms in IPs? I don’t think it is a requirement in rented properties. Tenants should be allowed to install their own which will make them more considerate of their treatment!
Not all fibro has asbestos! Since about mid-80s only asbestos free has been allowed. Some early products were just a fibro cement. As long as you don’t sand or drill asbestos content fibro everything is safe and free of worry.
A suggestion for adding value to a fibro house is to add a layer of weatherboards or even composite weatherboard to the lower half of the house. I think this may be an ‘arts & craft’ style. The weatherboard can be painted a different colour to reduce the ‘boxy’ appearance!
Listen to Milly. There is a lot of wisdom in what she says. Cheapest and best form of reno is to make everything clean! Fresh interior paint and new carpets!
A nicely painted “fibro” can also make a very nice presentation. A new coat of paint can be more effective than a relatively expensive cladding job.
I don’t know if Milly agrees but landscaping can improve the appearance of any house. Unfortunately, shrubs and trees can take time to mature so you often have to buy mature plants. A well cared for house of any fabric that blends in with its surrounds is always appealing.
Perhaps spending the money on paint & plants may be a better solution.
Little dogs seem to be a real problem because they always seem to ‘wee’ on the carpet. It is somthing that can be cleaned so I guess it really shouldn’t be a barrier. You make a good point that not many landlords permit pets but very often a tenant will slip one in anyway.
Good timely topic!I do not think this is completely correct. I would recommend a discussion with a qualified accountant.
I’ll bet the old buggers got a dog!
I think your neighbour has a valid complaint, you are profiting from his loss. You are also making things difficult for the next family that may have a legit ‘granny’ that they need to help. These flats are usually approved on a ‘needs’ basis, that is, when a family wants to take care of aging parents.
How about a tent in the backyard! What would you charge for that?
The LOE theory relies on the concept that property values will rise by 5% plus indefinitely. While property values have, at least since 1946, responded favourably, they may not continue to rise regularly and steadily. In fact, it appears that we may see a protracted period of no growth and perhaps a decline. Twenty years of little or no growth is very predictable.
If you try to live off equity from age 65 through a 20 year ‘no growth’ period your LOE hopes will not be effective. You will reach a ripe old age of 85 and will have eaten most of your properties.
Worst still if you can see interest rate rises in the future!Call it doom and gloom if you like but some may need to consider the possibility.
I’m with seechange, I think you retire from ‘jobs’ but if you are self employed or an investor you just keep going. I have never had a real job because I got lucky in property and just carried on from there. I must admit that the peoperty I have (or would consider to purchase) has to have an ‘special’ feature about them. So perhaps I am a collector rather than an investor and to that extent perhaps I am retired.
Perhaps I missed it but have you actually had the land surveyed. I have found that boundaries are a bit loose in some country areas but people do not usually build without being sure that they are, in fact, on their own land. I suggest you do not make a move until you have the land surveyed and marked.
Dear JustAllen, There is no reason why you can’t still live on a farm and receive a pension. I do not think it unreasonable for Centrelink to assume you are capable of making money if you are holding 20 to 30 acres. It is similar to holding a lot of cash, Centrelink will ‘deem’ you are capable of earning interest and assess you accordingly. Even if you do not intend to work the property you can lease/agist it out and acquire a consideration that way. I am aware that you can demonstate to Centrelink that you are not in fact farming and continue to hold and live on a property with full pension. However, If you are going to acquire a property and ‘run a few head’ there is a chance that you are going to make money
and, as a result, since pensions are means tested your pension will be affected. The point is, however, if you do make money you will be further ahead than just earning the pension. It is a bit like taxation, if you pay tax you are earning money and the more tax you pay the more money you have!I would like to suggest that you may be better off raising a few cows than collecting the pension anyhow.
Perhaps you had better be proactive and start looking for a new place. The type of work you describe suggests it can be done quicker if the property is empty. It also sounds like a rent increase is possible after renovations. Your Landlord and his PM certainly don’t put you at the top of their “consideration” list, do they?
I have installed ceiling fans as a quick, visable improvement. The remote control type are the easiest to instal and, while I use an electrician, they could be installed by a careful handyman. The overall cost with installation works out to be on average $150. They have a cooling benefit in summer and help with the heat in the winter. I don’t know why this gesture seems evoke so much appreciation but it does. When selling it is also a thing agents can highlight but they need to be dusted periodically.
Cheap and in my experience effective.Previously tenanted properties are usually in need of a good clean/rubbish removal when you buy. Even private vendors tend to leave a lot of junk behind. I can remember only one house that was spotless when we took over. A little old lady was determined to leave the place as she had found it when she had moved in many years before. Another house, which was to be gutted and renovated, sat empty for two months when mysteriously someone broke in and cleaned the place out. I am not sure if we were robbed or what.
Exactly Foundation and well put! The ‘vested interest’ brigade are relentless in the production of meaningless statistics but their ‘job’ is to sell not provide sensible arguement.
Living off equity depends on continued and sustained capital growth. It assumes that while capital growth may decline and grow these factors will in the long run average out to a growth factor of about 5%. As proof, proponents refer to growth figures from around 1965 on. Again, this positive growth has to be sustained or you are just eating your property. There is no need for property to continue to grow in value forever. In fact there are many reasons to suggest that we may experience many years of decline.
Dear Mortgage Advisor, From a investor standpoint your summary of Tasmania may be correct. I think that lifestyle considerations make It a wonderful place for people to consider when looking for a place to live. Believe it or not, waterfront properties are still available at, by northern standards, reasonable prices.
I have recently acquired a “dog” from a family member we had to bail out. I am going to say that it may be important to realize a mistake has been made and it may be best to ‘cut your losses’. I had generally cashed up until this ‘gem’ arrived so it is not going to hurt but I am unable to make it pay on the original figures. Maybe it is time to consider a smaller loss rather than throwing more money away!
I feel compelled to offer support to those that want to use these forums to express their views on property. Views that conflict with mine are really the only views that will contribute to my knowledge & awareness of property investing. It seems unfair to continually criticise a contibutor just because his/her ideas conflict! To argue and dispute these ideas is what is required. Sensible answers and replies that can be supported are the life blood of this forum.
‘Gloom & Doom’ may be an important message for some people especially while we have people coming on board with a fistful of dollars exclaiming..” I’m a newbie……”.
I must express some appreciation for the views of Dmitchie and the very sound comments from Foundation. It just does not make sense to blindly accept market predictions from those who sign their name ‘Vested interest mortgage broker” etc.
