Forum Replies Created
LOL aussierougue.
As for the lease, we have one porerty where the PM put in the lease that smoking is not permitted inside. I wasn’t aware this was going in the lease, but the tenant (a smoker) was happy to sign it and happy to smoke outside.
It would be very hard to police but there’s nothing stopping you trying something like this if you wished.
PK
Hi Marissa,
kp is right, the government has spent in these areas to beutify, sold off some of the state housing etc.
Don’t know about rezoning. I know this did happen for Balga, but Balga is City of Stirling, and Koondoola and Girrawheen are City of Wanneroo. Have you asked the council what their 5 or 10 year plan for the area is? You’re very thorough so I imagine you have already thought of this.
Good Luck,
PKSpoony,
We bought a place in country WA for $34,100. Yes very run down. We’ve renovated it at a cost of $16,500. If you add the purcahsing costs to it ie: stamp duty, loan costs etc, it probably brings the total cost of the place to around $55,000. We just have the real estate agent up there through on the weekend and he estimates it would proably get around $70,000 – $75,000 for it.
Now the catches are:
a)being country you expect it to take longer to sell ie: athe area we are in averages around 6 months. The mortgage payments on the loan are around $240 so that adds another $1,440 to the cost of the property when holding for 6 months. Plus you have the agents selling costs, probably around $4,000 – $5,000. So that brings the cost to $60,500ish. (Still a profit of $10,000 or more).b) Renovating in the country means driving there to do it. If you can take a month off work to do it then you’re laughing as it’s only one trip to do the lot, the cost of that isn’t much. Unforutanately we could only get 2 weeks off work and have had to travel up each weekend after that for the last two months, that has proably cost us nearly a $1,000. Still, it’s a profit we wouldn’t have had to start with and it was on a low valued house intially, so if we messed it up, we would only have been out of pocket by our renovation expenses and probably could still have sold at the same price we bought at.
Basically we looked at that being the worst case scenario and it was something we could live with so we gave it go. We’re not actually looking at selling this one as the rent that we can now achieve makes this very +ve cashflow and rentals are in demand in the area so we’re going down that track.
So yes, reno’s can be costly or they can add value. It pays to have a set budget and make sure you don’t overcapitalise. We knew the values in the area before we started so knew what could be achieved if we did it right. On that note, we could do other thing sot the house but have chosen not to as it would be “nice to have” but not actually add any value to the property. So do it with care and you can add value.
Good Luck
PKIn WA, it is usually expected that if the house is on Gas Bottles, then the owner pays the yearly rental fee for the bottles and the tenant pays for refills when they’ve used the gas in the bottles.
Water depends upon what’s in your lease. Most of mine the tenant pays for any excess water, however there is one where I’ve agreed to pay the first $200 per year due to the ize of the lawn and the fact that I want them to keep watering it. So it does depend upon what you agree to in the lease.
Regards
PKOn ABS I look at the Free Data, then I also check out the RP data site and then I usually call the council for the area I’m thinking of investing and see what info they will send out too. Often this is a bit more current.
Regards
PKNo didn’t realise. Interesting dilemma, perhpas contact a broker and see what htey can come up with.
Regards
PKHousework, yuk!
Yes, the blue light thing was the thing that I walked out of too. I didn’t do it right at the begginning though, I waited a bit, but not my cup of tea.
The serviced apartment thing I sat in on was opposite the seminar room 2, they did their talk in the seminar room and we set up right outside it. Had to walk out of that one to go and listen to Steve as they went overtime and well, hearing Steve was more important than hearing about serviced apartments. Wasn’t a hard choice, although their talk wasn’t bad and it mightn’t be bad to have 1 in the portfolio but I think it may only be +ve cashflow after depreciation deductions. Would rather investments that are +ve cashflow prior to deductions, although they are a bonus if there as well.
Anyway, either noone else from the forum went or they just not commenting.
Regards
PKPS. IS the baby due October? Or was it Sept?
Nadine,
You may need to try something different. Can you add value to anything you’ve looked at that will increase the rent so that the property would be +ve cashflow?
PK
Hi Mad-Cat,
It depends upon your risk tolerance, what else is in the town that would help it survive if there was a down turn in Mining etc. POrt Hedland is largely mining, but does it also serivce the farming community, is there also industrial etc.
What is the population doing? Have you checked if it’s increasing or decreasing? Also check out the council webistes, they afton have information relating to approvals of projects in the are, this may also help you decide.
No one can tell you whether you should or shouldn’t do it, it depends upont he information you find out and then you tolerance to various risks. So cehck out all the info you can find on the town and then decide.
Regards
PKRedwing,
Sounds like you got more out of it than I did. I did hear a couple of other speakers inlcuding Margaret Lomas, but one of the ones I wanted to hear was cancelled and replaced with some technology tiered buisness thing. That happened to be the very first thing I arrived there for so it didn’t really start on a good footing for me.
I did hear one other interesting talk on Serviced Apartments. While I don’t think I’m interested, I haven’t shut the door on it yet, seems there’s some law in WA that’s being changed that will limit serviced apartments in the future, whether this will then provide a scarity of them is the thing I’m not certain of. Something to look into.
Yes, my parking under the convention centre cost as much as the getting into the show.
Ah yes, I did put my name down at the investor club’s stall so imagine I’ll get more info from them soon.
The show was fine and it’s the first time I’d been in the Convention centre, but I still expected it to be bigger show. I guess I expected every broker and bank etc etc to be there and this wasn’t the case. Maybe it’s for the better, maybe not.
I’d go again if there was someone/s I wanted to listen to, but wouldn’t go if there wasn’t a line up of speakers.
Oh yeah, I did take my book 0-130 in and Steve kindly signed it for me.
Well must go, we’re nearly finished our renovation, then it’ll be time to look for the next investment.
Regards
PKPS. Redwing, you did a good writeup with the links and all in. Well done.
Redwing, might be able to answer that question as went to the show today (Friday). Steve has a digital copy at the show, but they are not available for sale yet, still being printed, estimate was that they will be on bookshop shelves at end of Sept.
Also Steve’s talk and meeting Steve and Brent was the highlight of the show. Other than that, it is really quite small, there are other speakers as well, but didn’t find them as informative, or perhaps it’s just that they aren’t suiting the investment path I have started to travel and intend to continue travelling at this stage.
Still, is worthwhile to go in to hear Steve and meet Steve and Brent if you get the chance. Friday was very quiet in there, so it was easy to meet them, I do hope Saturday and Sunday are a bit busier, will be interested in feedback from poeple that go in on either of these days.
Regards
PKAt first I wasn’t going to reply to this post as it was a bit confronting, we noramlly give our bit on the quiet and that’s that, but then I re-thought it and decided that it is good that all aspects of finances should be discussed, often the “not discussed” or taboo items can be our downfall. I guess I also think that for the income we receive we really don’t give enough back at this stage, however we are still setting up our portfolio and I am confident that once we have attained the goals we are chasing that we will then be in a better position to give more.
I must admit I avoid the door knockers, the phone ringers and the tin shakers. I prefer to be able to give a larger amount to a couple of charities rather than small amounts to lots. Plus I like to have privacy in my own home without the intrusion of door knockers and phone ringers. Anyway, that’s just my preference of how we like to do it.
As for who I donate to, well, we donate to PMH (Princess Margaret Children’s Hospital), Heartkids (WA) Inc and The Smith Family (Depreciator, I don’t believe they are imaginory kids, we’ve a a couple of letters from one that we sponsor and I also know someone that receives from them) . And I give blood to.
That’s the thing I think, so often when we talk about Philantrophy, we altomaticlaly think money. Money isn’t everything, I know people without spare cash that donate much in time to various good causes and this is probably more important than money.
At present the roadio station 94.5 in WA are running a “local Heroes” competition and each one nominated wins something from a local buisness such as a dinner or a day spa or whatever. They will also be listed on a wall of fame (in one of the local shires but I can’t remember where). Anyway, some of the things these people have done to help is just amazing and very rarely is it actaully about money. Well, just wanted to mention that as although charities do need money, they also needs lots other things too, such as time. So if anyone else out there feels despondent that they haven’t spare cash to donate, then do look beyond money at what else can be done.
Regards
PKHi Kaye,
I agree with everything you said. However the settlement agent (that’s what’s used here in WA) has not been helpful. Anyway to cut a long story short, it’s sorted and I’ve sent the settlement agent a bill for my time.
We’ll see what sort of response that gets!
PK
Kaye,
Agree the inconsistencies are bizare, but disagree that we should have a cooling off period. After all, when you sign, you like to think you’ve actually sold or purchased something, not then wait for several days in limbo wondering if someone will reneg.
I think as adults we should all be resposnsible for our actions and if we agree to buy or sell something, then that should be that.
For those that say, what if the agent is pushy etc. Well, learn to stand up for your rights, make a complaint about the RE agent or whatever, but why put a buyer or seller into a “limbo” period.
PK
Thanks Act Today. After much ringing around, we have got it sorted, it appears that the settlement agent should have ensured this was done and they should have charged us for 6 months of the strata fees and reimbursed the previous owner that amount. I had stopped using this particular agent after that settlement due to other problme that had accurred during the settlement, this just proves it was a correct choice.
Regards
PKI agree, get and read teh book and then follow up with his CD called Fastrack 2 as it builds on teh book but is more current.
I wouldn’t wait for the next cycle, often by the time people realise the next cycle is happening, half of the cycle has passed and so you’ve missed half of your possibilites. Start looking, doens’t mean you have to jump striaghtaway, but if you’re not looking then you definitely won’t see them.
Regards
PkIt’s his choice, but some people think insurance isn’t worth it, beacuse if you don’t use it so you’re not getting you monies worth. Can’t understand that myself, but have heard it said many a time.
Does he have car insurance? Health Insurance? etc. Ask him what the difference is. You are paying “just in case”, not so you can get your monies worth out of it. I have spent much more on insurance than I’ve ever claimed, but wouldn’t have it any other way. If a big incident did happen I don’t have the cash me to fix it, so that’s why I choose to insure instead.
Do remember though, we all make our choices and have to live with the consequenies of our actions. You can’t make him take it out, but do remind him that the conseuqencees are his alone.
PK
There are some and some you can create by fixing problems noone else wants to deal with. HAving said that I believe things cycle and that growth in prices as moved more thatn rents so +ve cashflow is harder to find but I would think that as prices level out and rents start to increase again, then new opportunities may present themselves.
Don’t give up yet.
PKIf you do the reno yourself then double the time you think it will take you and it’ll most likely be closer the amount of time it actually takes. Then you need to take into account the mortgage payments for that period of time as a cost as you can’t rent it while the renovation occurs. Once you’ve done this, is it still cheaper for you to do yourself?
PK
Ah yes, that makes sense although I had to reread it several times. I found this in their brochure, perhpas it might make it clearer:
* RentCover Plus – Protection against most tenat-related problems such as Macilious Damage and Theft caused by tenants, Accidential Damage, as well as almost every Loss of Rent Situation.
* RentCover Plus Ultra – A unique policy that includes all the features of RentCover Plus, combined with a $50,000 Contents policy protectin you against defined risks such as fire, storm, water damage etc. Items covered within this policy, inlcuing carpets, curtains, blinds, light fittings and propertry owners liability, are not necessarily covered by Body Corporate Insurance or Building Insurance.
I’m comfortable that I’m adequately insured, however, if you still have doubts you can cancel a policya nd get a refund for the reaminder of the year and take a new policy out somewhere else.
Regards
PK
