Forum Replies Created
I self manage 2 of my properties mainly for 3 reasons. More control over who the tenant is going to be. Save about $3000/yr. Have found PM's often underquote rent ($1000/yr).
You need to be professional, keep up with the regulations, do checks on references, etc and good with determining peoples characters. I have the tenants direct debit a seperate a/c for each property. ie never late.
If you want to be less connected with your properties it is not a good idea to self manage.Hi, have found bleach, anti-mould paints and cross ventilatation the best option. Maybe security screens on all windows and doors is a better option. Maybe you're better off arranging the quotes yourself. m
Go Andy, let us know how it goes.
Take your own advice.
marc.Oops – I was going to try and stay out of this argument, me and my big mouth.
I'm going to shut up now.Excellent Glenn, thanks for reply. It looks like a pretty hassle free option. Definately worth investigating further. Cheers, Linda.
Hi Jase, I was wondering if you could please include with your breakdown of costs an estimate of how much the property would have increased in that time without a reno also. Thanks.
Hi bloggs – just a general vibe I was getting.
ttman wrote:I don't know about fellow property investors, but I am sick to my stomach the extortionist fees charged by plumbers & electricians : $250 to change a light socket, $300 to change a cistern. Fair dinkum, do these people think they are brain surgeons or something. Together with SOME kickback receiving property managers doesn't help. Call out fee $88, at 5.01 pm charge weekend rate at double, the list go on & on. One time I have a plumber charged me $90 to tell me I need a new hot water unit. I know I can always get a second quote but sometimes it's not possible such as if the property is interstate or overseas, or if the tradies collude with each other. As property investors we need to think of a better way as these exorbitant tradie fees put a real dent to the cashflow. I hate being ripped off. I think of the followings to deal with this most unpleasant aspect of investing in residential property :
1. The reason plumbers and electricians can ask for exorbitant money because one doesn't know the cost for a repair job,
if this web site (or some smart web genius) can list the cost for all repair jobs then one can compare if the quote is
reasonable. Also it will be good if we can recommend honest tradies to fellow investors.
2. Relax most electrical & plumbing jobs so un-licensed handyman can do. Also open the flood gate to foreign tradesmen
as tradies in most countries are not as spoiled as in Oz. (In Mexico they have to queue every morning for jobs to earn few
dollars a day !)
3. Reduce the length of apprenticeship to one year. There is not much to learn in plumbing and electrical.One last question, are you sick of greedy plumbers & electricians ?
Thanks crj!
Good points Linar.
Years ago when I introduced my friend who was a lawyer, to my hubby who is a plumber she commented to me that even though my hubby was just a plumber she liked him and she could have an intelligent conversation with him.
I find this hillarious! He is just a person who finished school, decided uni wasn't for him, wanted a secure high paying job, and didn't want to be on the dole. He completed an apprenticeship (studied hard and topped the class), and got a job.
Just because he chose not to go to university doesn't make him dumb or less of a person. You get good and bad tradies just like every other profession.
Now my lawyer friend has changed professions, avoids hanging out with a lot of other lawyers as she finds they think how she used to think.
I don't think every tradesperson is smart and professional but I'm sure there is plenty of good ones and some of the above comments are narrowminded and offensive to the many good tradies. I'm not trying to offend anyone who is a professional, just trying to pointing out that there is good and bad in every profession and maybe in general tradies should be respected and not treated as though they are dumb and less worthy.My understanding is that you would have to pay stamp duty and CGT on the property you have already if you transferred i into a trust. I have heard that with a good accountant they can make it minimal but I haven't actually gone through the experience.
Hi Glenn, this is off topic but I was wondering how your experience has been with self storage sheds. Is there little hassles with this type of investment? Is there a huge demand? What size would you recommend? How do you go about insurance/insuring other peoples goods? Is there a book you can recommend so I can find out more info. Thanks in advance.
Does anyone Know of anyone who has actually been sued?
Thanks pendo – you've inspired me now. I was talking with another investor/friend today who is regretting now that he sold a property last year. He says he's down $100k already in fees, taxes, and growth he missed out on since the sale. I will look into Chan and Naylor further to see if their is a Perth office. You definately need a support crew to keep you motivated. Cheers
I can see what you're saying Pendo. I ultimatley don't want to sell. There's talk of Perth property prices dropping by 10% in future. If I was to sell one of my Perth properties now, with all the fees and taxes I'd be losing about 12% anyway.
Anybody got a good property accountant in Perth?
The other option would be to get rents and income up as high as possible. See if it's viable/possible to have a granny flat or rent storage shed or something.
So Pendo when you previously sold a property was it because of fear of rising interest rates and to pay off PPOR debt? Do you have any PPOR debt? If Q's are too personal I won't take offence if you prefer not to answer them.
I'm currently paying just under $5000/yr in interest on PPOR debt and expect my properties on ave to perform at above 10% per year growth. (I do think Perth will flatten for next 2 years though).
ThanksWhere are you considering purchasing Hallg?
Thanks for comments Nigel. It looks inevatable.
So pendo what would your typical investment be and attributes? What do you consider when you purchase? I used to purchase properties just based on if I thought it had good growth potential. I didn't even consider the rent! I WOULD NOT RECOMMEND THIS STRATEGY! My LVR is only about 30% but because one of my properties is a small house on a large block the rent isn't good. I'll be selling one of my properties soon to increase cashflow/reduce debt.
My future investments will be close to cashflow positive, in suburbs with good schools, changing infrastructure or a feature such as views, near bushland, near water. Doesn't have to be one of the top performing suburbs but not the worst either. Possibly a suburb beside a top performing suburb that is cheap in comparison. I would choose a property that was modern or renovated with desirable features. Do you think that is a good strategy?It's not just LVR though, you've gotta watch ROI.
I'm going to shut up now.
