Im fairly stuned to read that some people think that 4 to 8 weeks per year is an realistic period of time to factor in vacancy in an IP
Ive got 3 examples,
1/Owned 1 year, tennants have lived there 5 years and paying market rent
2/Owned 3 years, 2 tennants ,not empty 1 day ,even at the change of tennants.
3/ Owned 9 years, lots of tennants,longest vacancy 2.5 weeks ,clean up and new carpets after bad tennant got kicked out for not paying rent,lost 2 weeks rent and replaced 70s shag that had seen better days. Average vacancy would be no more than 3 days per year.
What areas are you renting that you think your IP may be vacant for almost 2 months in a year ? I wont mention what l would say to a PM if they sugested my IP may be vacant more than a week or so after getting 28 days notice to vacate
Gday Peter,
to date i’ve never had a problem at settlement ( touch wood ) ,valuations , doc’s etc becouse l maintain regular constant phone contact with all the people that are involved.l prefer to maintain this contact dispite their assurances that there will be no problems
so your back. Instead of all the muck throwing that you seem to enjoy why dont you clear the air and tell us where this attitude comes from , or go away like a sniviling little…. mate,you have no credibility
Gday gt
l think its important the first one goes 100 % right , so dont stick your neck out with some huge renovation plan. Keep it simple,buy a nice place in a good area thats easy to rent (Gee that was easy to say)and make this first one is a happy fun time also lots of research so when the right one comes along you see it MITCH
Gday Lucinda,
so your decision to renege was nothing to do with the Agent? You changed your mind after the vendor accepted your offer becouse the risk of not getting the return you were after was too high ? MITCH
Gday Kutty 70,without sounding harsh,l think if your putting faith in a bank valuation to support the purchase price of an investment property (you didnt specify renter or PPOR) then you should have looked around more,lf you bought your new PPOR and you love the place then congratulations, loving the place is more important than a great price. MITCH
Gday FNQ 2002, l think you need to find out how much your PPOR is worth as a renter against the size of your current loan payments inc rates etc this will give you an idea of affordability.l would imagine if you rent it these payments become deductable against the loan.You have equity if you x coll this and your new PPOR but can you meet the lending requirments of two loans in a lenders eyes? MITCH
Greetings All, just in relation to what Key said in relation to “the unprecedented amount of investors investing in Real Estate” and AD said “no doubt that many people have entered or are about to enter the property market” ,l wonder what will happen to all these one off investors in the next three to five years.We all relise that property investing is not all beer and scittles and it takes commitment in your beliefs as an PI to get you through sometimes.Now dealing with the public(as tennants) and banks and R E agents and all the other people who sometimes seem to be there just to add spice to what could be just another day, could knock about some one off investors to the point that it just gets to hard,then what? Could there be enough one off investers to hurt the rental market in years to come ? or is there going to be bargins galore when its not going as well as they had hoped and its time to sell up? . MITCH
Gday Robert, lve got a couple,keep your plans away from non investor types,l cant recall a positive conversation lve had with people who dont have a consept of investing for the future/early retirement etc and be thorough with your financial plan to take to your lender,if they wont lend the money theres not much of a plan left MITCH
Gee Tails, looks like youve shown your true colors now! l think my interpretation of you thinking of us as foolish wasnt too far off the mark at all. Never mind,ive had a real giggle at what I thought you were trying to do BUT its a pity you feel the need to cast aspersions at Steve McKnight anonamously , maybe your a politican who is used to making acusations under parlamentry privalige, making you a bit shy of using your own name to accuse Steve McKnight of sculdugery , a bit cowardly l think Never mind , you know what they say about swings and roundabouts. Good luck tails , l think your going to need it. PS My poor spelling is only surpassed by the speed at which l type.
G,day Tails277,now l must admit,when l first saw your post my imediate reaction was not particuly complemetry but as my computor was playing up l was unable to respond.I can now say upon reflection that YOU INSPIRE ME! The way in which you put down any form of property investment as foolishness(my interpretation of your attitude via your posts)is brilliant.It has made me sit down and take a good hard look at my investments and my ten year plan to take me to fifty years young.Tails,for me, my plan is going 8.5/10 and will allow me to do things other than work at fifty.So WHAT IF interest rates go up?so will my payments but over the last ten years my rents have gone up and ive reduced my debt .Debt reduction is part of my plan. WHAT IF l cant find tennants for three months? l buy late model brick etc and l maintain them well,not a lot positive cash flow but fantastic capital growth and lve not had a problem big enough to remember,sorry ive forgotten your last WHAT IF.My biggest WHAT IF is not hearing someone say “look out for that bus”.Maybe ive just been lucky but ive always thought you make your own luck and l fear regret more than falure.So get out there and have a go,if property isnt your thing,thats OK its works for me[]