Forum Replies Created
quote:
Hi again folks,Just a quick post… Does anyone know of a good property solicitor in the western suburbs of Melbourne? I’m in Altona so any recommendations for over my way or towards Melbourne would be fantastic.
Thanks
J [:X]Minxii
I know the best property lawyer in Melbourne – mine[
]He is based in Port Melbourne and not cheap, but he understands property well and deals with property developers and serious property deals all day.
I won’t post his details here, but email me personally and I will pass on his details
[email protected]Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
This would mean that we should distrust stats derived from auctions (eg average prices and clearance rates) as they may give a misleading impression being skewed towards the more expensive properties?This is apart from the issue of properties passed in at ‘vendor bid’ prices.
I would suspect that auction results would be even less representative in cities like Perth where they are much less common.
Peter
There is little benefit in using results of auctions as an indication of movements in value. Auctions only represent a small proprtion of properties sold. Most statisticians use median sale prices derived form all types of sale
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
hi mcollinsIf you have someone already i wouldnt get an agent. I property manage my own property and started with no experience. agents just cost money and dont do anything for it. As for knowledge they are not that knowledge at all.
It’s interesting that many beginning investors think they know how to manage properties yet you will not find professional investors managing their own properties – they know the value of a good team.
You are right that some PM’s don’t know much and don’t earn their fees. But there are some true professionals out there that do earn their fees.
Now for a quick disclaimer – I am married to the best property manager in Melbourne – Pamela Yardney, director of Metropole Property Management (MPM)
As an investor a she has a different mindset to the average PM – she knows what landlords want. Maybe that’s why she gets 5 or so new proeperties brought over each week for management from other agents.
I’m not saying this to blow my own trumpet – but many investors must think MPM adds value.
A great example is that of the leases signed for clients in the last 2 weeks one was for 5 years , one for 3 years and one for 2 years. Our landlords were thrilled with the extra security this gave them.mcollins – if you have no experience in this field use a professional PM. The problem is how do you find a good one.
Click this link to find 12 probing questions to ask a PM and for a report on the type of services you should expect from a good PM
http://www.metropole.com.au/reports/bonus_report2.htm
Good luckMichael Yardney
Metropole Properties
http://www.metropole.com.auquote:
In Melbourne it looks like the wealthier and pricier the suburb and property, the more likely you see auctions. Toorak, almost all, Dandenong, almost none, (No insult to Dandenongians intended).You are right. Auctions work better for unique properties and those that may be hard to put a definate sale price on.
If there are 3 other similar properties in the street that are for sale the price is pretty well known and an auction does not work well.
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Hi MichaelGreat article on Auctions in your newsletter.
Would recommend that everyone subsribe to your newsletter.
Regards
Thanks Muppett for the great wrap. A lot of effort goes into it and we get a few hundred new subscribers a month which is great but the more the merrier
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Anyone had any experience with this software that would like to offer there thoughts…I use both REAP and Jan Somers PIA Pro
They do similar thingsa nd give very simlar output, and are useful for comparing one potential investment property against another using Internal rate of return.
In other words it will help you compare a cash flow positive property with pooor growth against a negatively geared high growth property or any other combination.
They also let you do “what if” analyses. What if the rnet was $20 more, what if I could get it for $5,000 less – how would this effect the return?
They both do the job very well, but their true value depends upon the correctness of your assumptions.
REAP has a much slicker windows like interface and gives a great graphic comparison after you have changed the assumptions. I think it is a little better than PIA
All serious invetsors must use this type of software.
Michael Yardney
Metropole Properties
http://www.metropole.com.auThe rules for conducting auctions have changed considerably over the last few months. I think this was discussed by Steve McKnight in his last newsletter.
What this means is the techniques for buying at auction that worked well in the past may no longer be appropriate.
I discuss how to make the most of auctions in our monthly newsletter this month. I know that many readers of this forum subscribe. If you missed this month’s issue or wnat to subscribe click here
http://www.metropole.com.au/html/Subscribe.htmMichael Yardney
Metropole Properties
http://www.metropole.com.auquote:
can someone help me, how do i get rid of my agent?
Write them a letter? How should i say it in the letter?I still want to keep the tenants as they are very good tenants. SHould i write a letter to the tenants first so they are not shocked, or in case the manager goes to them and tell stories?
please help.
***********************
You do not need to communicate with your pm . First find a new one that you are happy with and they will organise everything for you. No need for embarrassment.When looking for a new PM here are 12 probing questions you could ask them
http://www.metropole.com.au/reports/bonus_report2.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.auLike Pisces133 I know of a number of “graduates” of HK’s expensive weekend course who have bought off the plan and have recently settled on properties and had very significant capital losses.
Further he gets them to sign a FIVE YEAR property management agreement with his company. He then onsells the agreement to another estate agency again getting large sums of money.
An agreement of this length is not binding and against the law. Unfortunately many of his investors don’t realise and feel “stuck” with this scondary proper manager.
Metropole Property Management has helped a number of clients get out of their agreement. email me if you are in a similar position and need help
[email protected]Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
HI THERE I AM THINKING OF BUYING A FEW IPS
AND I WANT TO MANAGE THEM MYSELF IS IT REALLY THAT HARD?
WHAT DO YOU DO WITH THINGS LIKE CONTRACTS
ANY HELP PEOPLE COULD GIVE ME WOULD BE GREATCHEERS
The fact that you are asking these questions would suggest that you still have a lot to learn about property investment and it would be false economy trying to save on agent’s fees.
have a look at these 12 probing questions you should ask when selecting your manageing agent. the report goes on to explain what a property manager actually does for you.
http://www.metropole.com.au/reports/bonus_report2.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.auThanks for the offer Bill
I look forward to your email
[email protected]Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Hi,Are rental management fees fairly standard or are there cases of being charged higher rates if the agent knows that you live far away or interstate and will need to rely on their services a lot more[?]
also is rental management worthwhile overall[?]
chris
Property managers fees vary from state to state and also within the state. In general you woul dthink fees vary with the level of service you receive, but that is not necessarily correct.
If you want to know how to find a good property manager have a look at this report:-http://www.metropole.com.au/reports/bonus_report2.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Thanks very much for your opinion Polar Bear, seems to be heading that way with the vacancy rate now around 4%, and more multi-unit deveopments nearing completion.mender
Hi mender
The vacancy rate for inner city and near city properties is MUCH higer than 4% which is the Melbourne average.
Our associated company Metropole Property Management manages many near city properties and has a number of new ones for lease at present (we did not recommend the clients buy them – they came to us now that they are in trouble.)
I recently spoke to a landlord with a city fringe property that has been vacant for a number of weeks now. He is starting to hurt, esp since the valuation came in $50,000 under his contract price. I pointed out that there were 200 apartments for lease in his immediate vicinity and that’s why he is having problems leasing his property.
You may have real difficulty flipping the property as there are very few buyers at present looking for this type of property.Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
huey,
I am only paying house insurance and landlords insurance, which includes rent cover etc for 306 a year. try this web page.
http://www.rentcover.com.au/
you can call them if you like, i found them very reasonable.
cheers
shaun
We recommend building insurance incuding contents public liability and loss of rent. many investrs forget the loss of rent cover.
We had one client who had a fire and it took a few months to assess the damage, get permits and rebuild. In the meantime no tenants = no rent, but the mortgage must stil be paid.We also recommend landlords insurance and Rentcover as suggested by Shaun is a great company. ANother company to consider that gives a better policy for slightly less is Terri Sheerer Insurance
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
[] wow []i cant believe that after 46 views no one has had any idea?!?!
oh well
[
] Powmow []I have been away for a week so couldn’t reply.
The rules ofr each state are different but in Victoria the new legislation has not become law yet.
Even so most agents are behaving. IN Victoria there is no restriction on the number of bids -but they must be declared.
I have bought a couple of properties at auction for clients in the last months and sols a few also. Interesting times[
]The new laws change the way we must deal with auctions. The new tactics to use isthe lead article in our next free monthly 12 page newsletter coming out in a week or so. If you dont already subscribe but want to send email me and let me know
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
I think that realestate.com.au is only available to advertise by PMs and agents. Correct me if I am wrong![]
The minimum subscription to realestate.com.au is 12 months and the monthly subscription fee is high and not relate dto how many properties you advertise, so its not really for private landlordsMichael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Hi Damien,
Anyway 007, I pretty much have to agree with Damien here, builders still make the fees up in their margins, design / drafting work & council applications cost money, and builders need to cover their costs. It’s just that including these items in a contract is not as ‘in your face’ as a $12,000 upfront fee.Cheers
KymI must agree with draftie and Kym. I have been involved in property development for over 15years
and I would not leave a development application to a builder to get through council. Of course the cost must be built into their fees but more importantly it is a diificult process and needs expert attention.Either your architect or draftsman shoul dhandle it if you don’t have the experience or better still a town planner. They are professionals dealing with professionals of their own background at the council and they are very good at expediting permits.
There seems to be a great interest in property development so I would like to make an offer to members of this forum. I would be prepared to host a free discussion session if enough Melbourne based people are interested. NO cost no obligation – nothing to sell.
My company is currently involved in over 50 individual deveopments around Melbourne from dual occupancies to a 22 townhouse project. (Mainly 4 – 6 unit projects)
I would be happy to sit over a cup of coffee one night with interested forum members and discuss property development and give the benefit of my partners and my combined 60 years experience.If there is enough interest we can organise a time – email me personally – [email protected]
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Hi Michael,Firstly, I would never waste my time collecting rent, i do believe this is bad use of time for most… but for some it may not.
I do not disagree with your comments and i am sure metropole offer a great service, seems like a great company… My point is that PM’s do need to be paid as much especially when most of the time, specifically with new properties, they don’t really need to do anything… I kind of like the idea of PM’s offering various management plans to their clients… e.g. New apartment plans, Incident based plans etc.
I know many owners of real estate businesses, they all say that a healthy real estate business heavily relies on the number of properties it manages… High profit, annuity revenue… Hence why metropole is seeking this market!!!
What kind of rates do you charge at metropole? Let’s face it the property game is about making money, so other than providing good service how do you ensure that you offer you clients (Landlords) the best possible return… Keeping in mind the massive influx of new apartments in VIC which has directly impacted landlord’s seeking for premium rental returns.
Regards,
Steve
Thanks for the questions Steve.
First the disclaimer…. I started Metropole Properties in 1979 and am still intimately involved in that company and property development.
This year we set up Metropole Property Manangement, (MPM), a licenced estate agency. I am not an estate agent and therfore do not work for this company. Pamela my wife is one of the directors of MPM and runs the company.You are right in saying that many estate agents see the property management business as an “easy cash cow” which supports the office. But they do not look after it like they do the sexy sales department.
MPM has chosen a business model that is becoming more popular overseas. It has chosen not to sell properties, and they exclusively lease and manage residential property. This means they give the same attention to your rental property that the others give to your property for sale. And they cover most of suburban Melbourne with a central “super office”. That’s easy to do today with the internet and electronic banking etc.
It’s hard to beat the big guys in the area of sales, but its easy to beat them in property management with great service.
Each vacant property gets a marketing campaign and special attention given to it to ensure minimal vacancies and maximal rentals.
You asked how they add value – I thought I outlined a number of ways in my previous post. I guess they make your investment hassle free. And with so many properties for lease giving a great number of prospective tenants and huge enquiries from our free interent advertising, they generally lease their landlord’s properties quickly with a huge savings by not having to advertise.
They must be doing something right becuase they picked up 13 properties in the last 2 weeks alone from landlords who were disgruntled with their PM’s.
It’s interesting…those investors that have had a bad experience or lengthy vacancies don’t tend to ask what the fees are. They just want the service. But in response to your question about fees – I believe they vary depending how many properties you offer for management.
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Hi SteveI think we got a certificate, but so what? I don’t believe that you need any qualifications to be a PM – and in fact there are lots of agencies who are not members of the REI, and so therefore would not send their people to the REI courses. It’s a fairly high turnover industry from what I’ve seen
Cheers
MelMel
In fact you do need qualifications to be a PM for other peoples property. The minimum a PM needs is an agent’s representative licence. But they need to work for someone with a full real estate agent’s licence. This does takes much study and a number of years of experience.
You need a trust account which must be audited because you handle other people’s money and professional indemnity insurance.
It’s not as easy as it sounds.
Michael Yardney
Metropole Properties
http://www.metropole.com.auThis is interesting because I used to think like many of the readers who have posted above. When I bought my first few investment properties about 30 years ago I thought I could collect the rental as well as anyone, but I have changed my mind over the years.
If all your PM does is collect the rents then you are right, you probably could do it yourself, but if your property manager adds value, then that’s a different matter. Especially when their fees are tax deductible.
Now I must admit I am biased….
Pamela my wife is a director of Metropole Property Management, Melbourne’s best property management company. Today alone she picked up 6 new rental properties from landlords who were unhappy with their PM.
But that’s not the main reason I disagree with most of you.
Recently I heard someone say that he could have either made himself a sandwich at home (cost about $1) or he could go to Subway and have them make him a great sandwich for $5. While he makes great sandwiches himslef he chooses to go to Subway becuase he hates the preparation before and the cleaning up afterwards.
Once you own a few properties you will find you can do better things with your time than collecting rentals.
Other reasons I think you should use a PM include:-
1. A number of surveys have shown that people who manage their property on average achieve a lower rental.
2. Tenant Selection – as a landlord you do not have access to the National Tenancy Database to do tenancy and credit checks on prospective tenants.
3. Are you able to prepare the lease documentation in a way that will stand the test in the tenancy tribunal? Do you know the special clauses that you can legally add that protect the landlord. Pam has 5 of them.
4. Have you got the forms and the knowledge to handle bond payments correctly.
5. Dispute resolution with tenants – this is hard to do yourself.
6. Appearances at the Tenancy tribunal – again hard to do if you don’t know the legislation.
7. Repairs and maintenance – even new properties have problems and having good reliable trades people is critical.
8. Arrears control – most landlords have real problems with this. Pam issues a notice to vacate at 14 days (after 3 letters). Boy does this make them pay up.
9. Do you have the negotiation skills and the market knowledge to minimise vacancies
10. By the way private individuals cannot advertise on sites like realestate.com.au which is the biggest source of tenants for most agencies. Doing it yourself means you could miss out on a heap of good prospects.If you want to download an interesting report outlining 12 probing questions to ask your PM click on this link.
http://www.metropole.com.au/reports/bonus_report2.htmMichael Yardney
Metropole Properties
http://www.metropole.com.au
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