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Local knowledge is one thing however there is something called the net nowadays. Most tenants find properties this way, so location for the agent is no longer an issue – it is the signboard & Domain.
Using a single agency gives you a little discount on your management fees as well as simplicity in recieving one statement for all properties. You may still deal with a few property managers as they may have several managers dealing with different physical locations (ie not separated by clients).
Still in the same general area, possibly a shade cheaper but with just as much (or more) demand – somewhere around Greenwich/St Leonards/Crows Nest ie close to either RNSH/North Shore Private Hospital or the Mater Hospital. It would provide an alternative to the few hotels in the area (Greenwich Inn & Ibis).
Best size – depends on who your research shows up but possibly set up as a 1 bedroom with a sofabed (ie 2 -3 people).
Pricing would have to be higher than it would normally be for long term tenants due to higher turnover of tenants (additional cleans, linen, maintenance etc).
Not sure if anyone specialises in the management of this type of short-stay accommodation but be prepared to pay additional for the intensive style of management (possibly 15-20%).
The provision of this type of accommodation is generally treated as residential, so it would be input taxed (ie you can't charge gst on top of the rate).
That'd make for an interesting read Terry.
Jaffa, that is incredible. How dare you lie to an RE professional. They are caring & sharing people with families to feed. The mere fact that you have admitted in an open forum that you have misled this individual shows how sorry about what you have done and you should rush out and fess up about it.
I am certain that no REA would intentionally mislead a purchaser as to the price a property would sell for nor how much a buyer could expect to sell, just ask blogs.
Research is your only way out here. Go past each of the agents on a Saturday, pick up their listing sheets, check local & regional newspaper adverts and check out the competition. It won't give you a vacancy rate but it will give you a fair idea of how many vacant properties there is on the day. As for determining the vacancy rate, you will need to know how many properties there are in the LGA, how many are owner occupied & the balance is your rental pool. Luckiliy much of that is available on Domain or similar websites.
For many inner city Sydney properties, I'd be expecting sale within 10% of the guide otherwise, the agent is not being honest (ha ha) with the punters.
Forever (or until the ATO changes its mind).
What way is the wind blowing?
There are many things to consider when offered a range – is it realistic? Is it above/below what you believe the property is worth (after reviewing recent comparable sales). Do you own the adjoining block? How good a negotiator are you/your buyers agent? What terms are you buying on (delayed settlement/subject to xyz/vendor finance/subject to tenancies etc). Is it a rising or falling market? Is the purchaser eligible for FHBG/stamp duty concessions? What is the zoning? What does the LEP say?
It is not as simple as saying it is on the market for $535k neg.
Adam, is it vacant land? Being rural, capital growth will be very slow and as stated it hasn't been a positive experience to date. It may well be time to cut and run. If it does make a loss, then you may be able to carry forward this loss and offset it against any other capital gains that you make in the future eg sale of shares or other property.
He's picked that up under Depreciation $3k Richard
blogs wrote:I dont mind paying, but if they are going to quote a price then I would at least like it within that ball park…blogs, there are 2 sides to this one, if the agent provides a guide for an auction and it is seems to be wildly wrong because it goes 20-30% over the guide is it the agent's poor guide or was it due to the agent creating a highly effective marketing strategy and allowing market forces to decide? Should the agent be fined by NSW dept of Fair trading for underquoting (as it often does)?
The otherside of the coin, as an investor and reader of this forum, how many times have you seen someone comment that they have picked up a property 'under market value'? Was that due to good negotiation on the part of the investor, a need to dispose of the property by a distressed vendor, a mistake by a poorly informed agent (insufficient research but still convinced the vendor) or even inadequate due diligence by the investor (may have missed sewer across the block/proposed highway bypass next door or other problems)? Do investors/purchasers complain about a 'bargain' or only about the bargain which was a money pit?
Looks interesting – is your retail lease NSW RTA compliant & does it come with a disclosure statement?
Finding a site, settlement, getting conultants, plans & DA will take some months. Why not look to a delayed settlement allowing DA to be achieved and start works closer to when tou relocate?
The first thing to ask is what are the marketing strategies of the other agents? What are the results of other agents? What method of sale are other agents pushing? For similar properties, how many days on market is it taking to recieve acceptable sales? Who is their target market? What contribution toward marketing will the agent make?
The second thing to ask is the appropriateness of the marketing strategy, will spending $2k get me $15-28k or will I get the same result with little or no effort?
When you are able to make a reasonable assessment about the other agents and the price that you want to achieve, compare this one to the capabilities of the market, does this one seem more appropriate to your property?
It may be worth looking at Binet homes as an alternative
You never know, the agent may be fielding interest then go to auction. If too many are interested at the lower price, then they are entitled to raise it. Would you complain more if you owned it and they sold it for $615k when the market would have been $700k?
Net yield = Net Annual Rental Income / Current Market Value.
Do not include interest, tax or depreciation in your net yield as these affect each investor differently.
Pretty much as Terry points out.
Also add: whether you have the capacity to pay the new loan in addition to the current one (in either situation), will there be break fees on the current loan?
Which state Miss A? NSW does not require the licensing of commercial builders but Qld/ACT have registration.
Have your plans been drawn up & submitted to council? (Your shed mob should be able to do that much).
If the suburb's median is $1.5M then an architect's fee is an investment not a cost however you will need to rule with budget etc. You won't get much for $500k as a one-off. You may need to go to one of the top end project home builders like Krslovic in Sydney to get something which will work ( but still over $500k)
