Forum Replies Created
Thanks for the perk up guy’s, I needed it. It does not matter how well you are doing, at times the doubt monster creeps in and niggles at you. Talking on forums like this can realy pick you up.
Bigben, at 25 you sound like you are realy doing well. Kids or no kids. Remember though, all the money/property in the world is not worth the memories I have with my family. Do both if you can.[
]P.S. I like your comment on the bottom.(Sooner or later the man who wins is the man who thinks he can!)
Yack, Keep on keeping on. A couple of kids and you realy know why you need to invest in property.LOL.[
]You will always miss 100% of the shots you don’t take!
Hi Mini,
Good to hear from you. Yes I follow most of your posts with interest because it seems we think along the same lines. Ok here is the rundown.
1. Purchased in 1997 as first own home.
(Was forced to look at bottom of market as I had a very young family and only one wage) 3br/1bth weatherboard ex housing commission.2. Purchased at Auction for $32500. Government auction.
3. Paid 20% = $6500. Got this from a personal loan at different bank. Had no cash at all.
4. Insurance = $350 py
Rates = $600 py
Repayments = $93 pf
Management = $264 py
Would have to dig up contract to find loan costs ect.
Interest Rates were approx 6.5%
Conveyancing approx $8005. House was in bad shape cosmeticly, but we could see the potential. Structurly sound.
6. Moved in and over two years we paid heaps off loan and renovated as best we could.
7. Got posted (In Defence) and place left vacant for a while. Half renovated and not suitable for tenant.
8. Friend finished of house for us and went into the rental market at $120 pw.
9. Had at least 10 applicants to choose from.
10. First tenant stayed 12 months no problems.
11. Second tenant (An old pensioner lady that the realestate agency had never had any probs with) shot through breaking lease. Recoverd bond through court. Manager handled everything.
12. Third tenant is currently still there and has been for years.
13. I raised rent when he moved in to $125 pw but have left it as is because he is fantastic tenant. Never complains. Pays on time and keeps property in good condition. Not willing to lose good tenant for a few dollars. Rent is under review now lease is due. If he is willing to sing on for another 12 months then I will leave rent as is. Agent has just told me that you can’t find a house like that for $125 anywhere in town.
14. Only maintenance I’ve had in all this time is tap leaking and front tree trim. I spent approx $5000 on renovatins when I lived there.
15. There has been very little vacancy. And always have a good supply of tenants.
16. I have not had the place proffessionaly valued, however I could probably estimate that the value today would be a min of $80 000 and may go as high as $110 000 with current boom.
17. The house is in SALE, Victoria. Has nice street appeal after I did up yard and gardens. Is in average area but not to far from town center.
I would estimate that depending on what maintenance comes up during the year that I make close to $2800py. And I never have had any real problems at all. (Touch wood)
Hope this helps paint a bit of a picture for you Mini. I can be more specific given enough time and I can even dig up a picture of place if you want.[
]You will always miss 100% of the shots you don’t take!
Please let me clarify.
I’m not interested in selling my current property. I’m only interested in buying more.
I’m just not sure a ROI of $600 is worth the trouble.
Any more comments would be helpful.[
]You will always miss 100% of the shots you don’t take!
You will always miss 100% of the shots you don’t take![
]You will always miss 100% of the shots you don’t take!
I think the question is whether or not there is someone who can manage the place for you? The numbers might stack up but if no one is close enough to manage the property then you could be in trouble.
Capital Gains or No capital gains is up to you. Positive Cashflow is not to be sneezed at because it helps service the loans for negative geared properties for the future.[
]You will always miss 100% of the shots you don’t take!
I think the obvious answer to your question would be to ask questions pertaining to the income and expenditures of the property.
You mentioned that you wanted cashflow properties right?
For a house to be cashflow positive the property costs and income must be of a certain amount.
When you look at a property, fall in love with the numbers not the property.
After the first month or so of constantly emailing agents about properties and asking very similar questions each time,I decided to do up a word document containg all the general questions I asked every time. Here is my example:
1. How old is property?
2. What are the rates on property?
3. If leased, when does current lease expire?
4. How long has tenant been living in premises?
5. What street in ? is property located?
6. Why is vendor selling?
7. What is vacancy rate on property?
8. Does property have a rent roll or rent reciepts that I can see?
9. What is population like in ?
10. What is the current rent if rented?
11. What immediate work needs doing?
12. Can I see some more pictures of the inside?
13. Does your agency manage properties like this one?This list is not exhaustive but a guide line only.
I particularly like to entice the agent with the last question. If an agent knows that there is a chance that you will allow them to manage the property then perhaps they may be a little forth coming with the other questions.
Also take the answers they give you with a grain of salt. Guide only. It’s common for agents to tell you a place is tenated and achieving x ammout of $ but is overinflated to make the numbers look better. That is why I ask to see a rent role or rent reciepts. To back up thier statements.
Hope this is helpful[
]You will always miss 100% of the shots you don’t take!
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