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Sorry I don't want to highjack this thread but is sort of on the same line…. Say you were planning to sell in the coming 12 months or so and the tenants lease was up for renewal, could you offer the tenants a period rent free in return for a higher amount for the remainder of their lease. When the rent free period is up advertise the property for sale emphasizing on the ROI and targeting investors chasing high yield. A little bit deceiving, but has any body done this or had it happen to them? Is it even possible?
No intention of doing it just curious thats all.
Cheers,
Hi minds-eye,
I am aware of the 6 year rule but believe the property must first be your main residence. As copied from your link….
As a general rule, a dwelling is no longer your main residence once you stop living in it. However, in some cases you can choose to have a dwelling treated as your main residence for capital gains tax (CGT) purposes even though you no longer live in it.
You cannot make this choice for the period before a dwelling first becomes your main residence.
In saying this, having it as an investment property could be a good thing?- you should be able to claim part of the purchasing costs etc.
You will be able to while you are living in it. While it is being rented out you can't treat it as a PPOR.
I have had a few issues where I felt I was getting pretty ripped off. Now for any issues I get the agent to advise me first then generally request a quote. If it seems extreme then its not to hard to chase up a quote yourself from another service provider or get the agent to get another one from someone else. All good in hindsight I guess.
I agree with Jamie, I currently have two in the same town with different agencies. One charges 9% and the other 11% (Expensive I know!), and I am currently debating whether to axe the one charging 9% and put them both with the 11% agent as the quality and efficiency of the two are quite different! I wish the cheaper one was better but it didn't work out that way unfortunately!
If the rest of your house has Gyprock ceilings then Freckle's method sounds like the best and easiest. Hire a sheet lifter for a day and youtube how to do it and you could knock it over as a little DIY project.
Jye and Tahnee, If you click on the blue 'here' it will take you to jamie's link. Then same again when you are on that page to view the report
Hi Oscar,
As you bought unconditionally I am guessing you did a bit of research as to the development potential beforehand? What did this involve? or did you just know from your past experience that this block could be further developed?
Does unconditional mean without the subject to finance clause? Even though you were applying for finance?
Cheers,
How long until the website is up and running Matt?
Thanks guys some excellent invaluable info there! Appreciate it! Watch this space
hahaThanks heaps for that Wilko! Exactly what I was after. Appreciate it.
Dont be shy guys… I know oscar isn't the only property developer on here….
Cheers Oscar. Just found your thread Developing 101! Excellent info thanks.
Thanks Oscar. That is where my main problem lies though. I am the only one in my friends/family that is keen on property investing let alone property development. Is it just a matter of starting off small and learning the ropes as I go from trial and error?
How did you get to where you are today in relation to property development? (if you don't mind me asking). Did you learn the ropes from family/friends etc?
List it with both and just tell the existing one you are doing that as you need to sell it asap. Apart from that there are sites online where you can privately list your house forsale.
Also you may find that your local area has a facebook group specific to property sales and rentals in blackwater. My last property was bought privately through a local facebook group.
Where abouts is the property? Are they the only agent in town?
Couldn't agree more Scott. Luckily this was my rental with the lowest amount of weekly rent otherwise it would have been much more painful.
What insurance company do you use and is your loss of rent uncapped?
Hi Guys,
Thanks for all the advice and replies. Sorry hadn't got a chance to get back on here lately.
The tenant has finally moved on (probably after they shut the power on him), and am going through the process of getting the property back up to scratch.
Thankfully have already had tenants ready to move in for a couple of weeks now so they are due to move in on the 21st! Will be good to finally have rent coming in after neally 4 months!
Unfortunately the maximum claim for loss of rent with my insurance agency is $5k so I will be slightly out of pocket there but all just a part of property investing I think.
Is this the norm having a 5k cap on loss of rent claims? Does anyone have a policy that is uncapped or better quality then the one I currently have?
Cheers,
Yeah I agree Freckle. My missus doesn't see it that way though. I have tried to explain to her that it would be the same as running a business, you are always going to get bad debts and people who choose not to pay for your service.
Definitely glad that I have multiple layers of protection now as we will only be slightly out of pocket by the end of it all.
Just doesn't sit well that he can pack up an move on with no liability at all.
And then to hear on the radio the other day, those of you that listen to hack on triple j, that Australia has one of the most lenient tenancy laws in the world and that they favour the landlord too much and should be changed. Really don't agree with that but anyway.
Hey Jamie,
We are going great at the moment thanks. Hope all is well with you guys and your new addition to the family!
Yeah it is a little frustrating at times, but I am glad I have insurance so I won't have to waste time and effort chasing an ex tenant who will probably never pay!
Cheers,
Nathan
haha
