Forum Replies Created
- If you are talking residential I would agree with PK’s comments
Derek, good point, I automatically assumed “Residential”. Never good to assume anything!
PK
Prices have increased over the last couple of years, so that’s a positive. Also, the selling of blocks below tide level was a problme several years ago but has been jumped on and shouldn’t be occurring now. But you can get a map of the island form the council that shows the areas affected by tide.
I’m curious though as to how you will move a house over to the island? Will the truck carrying it be able to go over on the ferry?
Regards
PKHi there Dazzling,
In “The Landlord’s Handbook” which is published by Dept of Consumer and Employment Protection in WA it states:
“You many only increase the rent under certain circumstances. These are as follows:
– a minimum of 60 days’ notice in writing is to be given to your tenants; and
– not less than six months must have passed since the tenancy commenced or since the last increase took effect. Note: it is not necessary to give your tenant 60 days notice if their fixed-term tenancy agreement is being renewed as all conditions (including rent) can be negotiated at this time. However, it is a good idea to warn your tenant of the intended increased some weeks prior to signing the new lease so efforts can be made to find new occupants if your tenant does not accept the proposed increase.”Hope this helps. If it was me I would give the 60 days notice as long as all of them have been there longer than 6 months. With prior arrangements being verbal it’s hard to prove anything else, so benefit of the doubt and give the 60 days.
By property costs I assume you are talkinga bout excess water, this would need to be written into the new lease. You also need to get the water authority to do a reading at the date that the new lease starts, you’ll have to cover the water prior to the new lease starting.
Good Luck, let us know how you go.
Regards
PKHow long as you leasing back for? If not long then I’d just accept the lease witht he clause knowing that if it breaks down they will still have to pay for it to be fixed, it’s just that it’ll be after you’ve left. Can you handle it with no air con if it does break down, especially as it is coming up to winter anyway?
If both parties agree to the clause then it’s binding, I believe they can put it in and if you sign then your bound by it. If you haven’t signed yet, then are you prepared to move out to other rental accomodation if they stick to their guns on the clause? Basically is the issue worth arguing over or it worth moving twice to avoid it?….
PK
mmm, well, I’m still waiting for the API magazine to land in me post box!
Congratulations.
We have used a combination of saving for deposits and using equity in out PPOR and IP’s as it came up. If your IP’s are in areas that get captial growth then then the more IP’s you have the quicker you get equity to go again.
Our problem now, is more to do with having income to service loans which is why we look more for +ve cashflow now.
I believe having a combination has allowed us to keep moving forward.
Regards
PKI only give my mobile number to tenants so that is things so bad and thye ring constantly at silly times of the night to annoy me, I can a least turn it off.
Also they only ring when something really is a problme that way due to the extra cost.
I’ve not had a problme managing things form a distance that way. Mind you, I had occassion to meet a couple of the tradespeople in the town then renovating so have contacts if I need something fixing.
Good Luck
PKI don’t think there’s a time limit to how long you can sleep on it for, but until it’s signed then either party can pull out.
Not sure you can Gazunder in WA as our offer and acceptance that we sign and countersign when negotiateing in WA is a legal document.
Good luck and do let us know how you go.
Regards
PKNo one has mentioned tiles. Jsut wondering if there’s any reason for this as they are hard wearing. Are they outdated?
I agree with debtdogg’s explanation.
i would like to know “how you will go broke while making a profit”. True, you will pay tax on your profits but this is rarely more than 100% of your profit. If your tax rate is 42% then that’s what you’ll pay on your profit, so how will you go broke while making a profit when you still ahve 58% of your profits left?
I look at both aspects when considering a profit. What the cashflow will be like during the year and what effect tax will have on that cashflow.
I like Steve’s method, becasue if it’s positive cashflow in the first place, you’ve made a profit without needing deductions like depreciation. If you can then also claim paper deductions and therefore pay less tax then that is an added benefit.
PK
It should be in your fees, otherwise you’ll need to ask. My PM charged $45 an hour to go to a meeting for me.
Regards
PKYeollow pages would have some, but otherwise Hegney’s are a well known mob.
Also wondering why you need a valuation if you are seling, are you looking to sell it yourself? Otherwise just get a few agents out and see what prices they give, plus get a sales report form the Valuer General office (between $22 and $48 depending which one you ask for). The report shows number of bedroom,s kitchems, bathrooms, lounges etc for all the last sales, so you can look at the sales in the streets around your home, that have a similar makeup and get an idea of what they were going for.
Good Luck
PKGood Point there DD. We’ve just had a $5 a week increase on our Mandurah property, but that’s been the first increase after 2 years. So agree, rents are very slow to increase here at present.
Good lcuk with Qld.
PK
Thanks Sharon,
Shall have a look.
PK
Perhaps it’s built out of gold bricks!
I had fixed term interest only loans all tangled too, found it easier to untangle them as the fixed term came up as they had grown by then and therefore we could threaten to go elsewher if they didn’t allow them to stand alone. Valuations proved we owned more than 20% on the home by that stage so was then relativley easy to change. We had tried to untangle earlier, bascially they said no and as they were fixed, it would have cost us too much.
So we waited for each to come due and in the meantime got a credit loan on our own home for future deposits so that future loans could stand alone.
Hope this makes sense. It sounds tangled jsut trying to write about it.
PK
Sandyman,
Many of the banks use commerical loans for properties that have more than 3 or 4 units on it. That’s why I mentined the commercial loan bit.
Unless you have enough equity in other residential property that you could take out a credit line to purchase it that way. Good luck and let us know how it all goes.
Regards
PKI have no idea but would keep the words “Backpackers” out of it. I feel that this creates teh imagine of just youngun’s, whereas with the set up you have or 2 to 4 beds a room with private facilities, you could attract, backpackers, couples, families, coach tours (and many of these are oldies) etc.
So my only suggestion is not to have the word backpackers in the name and it sounds limiting to just the youngun’s, and why limit yourself!
Regards
PKWell, it’s just my opinion, but…. I’d buy my own place and an investment property.
Talk to a bank or broker about what deposit you need on the investment property (probably 20% – or you may be able to put the whole lot off your home and then use that as security for the investment porpoerty) and then put the rest into your own home as there are no tax breaks for the interst you pay on your own home, whereas you can claim the interest on your Investment Property as a tax deduction. Therefore, I’d always pay off the PPOR first and would most likely have an interest only loan on the investment property, at least until your own home is paid off.
I’d talk to a broker though explaining your goals ie: whether the investment porperty will be +Ve or -ve geared etc as this may affect the best way to set up your loans and how you pay deposits etc.
Good Luck
PKKarl and Rita,
To buy -ve geared isn’t necessarily a mistake, buying out of emotion can create mistakes.
However, here’s a few thoughts:
a) Is there any way of adding value to the properties which will increase the rent so they are getting closer to covering themselves?
b) To sell now would incurr selling costs etc, will this benefit your long term goal?
c) While holding these two are you in a position to save for another deposit, for a positive geared one? If so, this help with extra income to hlep cover the shortfall on the others.
d) Can you assess the properties yourself unemotionally now? If os, is there a good chance of captial gains or not? If not, then why do you have them? If so, then perhaps it’s worthwhile to keep them.You can still focus on +ve cashflow for future purchases, or you can sell the lot and start over, remembering that you will have selling costs to come out of the sale of the properties.
One of our IP’s is still -ve geared, even though we now look for +ve geared properties. We have chosen to keep the property at present as our researchs shows that the area should have capital gains. Like you we have a mortgage on our PPOR. Our plan down the track is to sell the -ve geared one to pay off the PPOR, this may be another 5 years down the track, but we feel in this case it’s worth our while to keep.
SO perhpas you need to start by doing some “due diligence” on the properties that you have to see if it’s likely you’ll achieve your goals by holding them or selling them.
Good luck.
PK
