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I do it slightly different as I am close to the uni and single…but it may be food for thought for someone. I have homestay students that come and stay with me for a month or so, paying $170 per week for board. When they are ready I funnel them into my investment property if there is a room available, for a cheaper rate of $120 per romm/week. no garage required so I converted that to bedrroms and now have 6 bedrooms. I only take girls, mostly chinese or japanese as they don’t like to share with boys, want their own space and very rarely venture out of their rooms. But they do want lockable doors, TV, broadband (Broadband is an extra charge of $10/week. Each room has a phone connection but they must connect up themselves if they want a phone (they often need help to do this) so it runs along the lines of purpose built student accomodation, which I funnel the ones I cannot put up into, but they don’t like signing 46/52 week leases. Unis have plenty of summer students, not to mention english courses they need to pass before starting uni. I like managing them myself and care about ‘my girls’ as I have found that the new foreign female student with poor english needs a bit of help. I also find that their parents like to know they are safe.
The purpose built accomodation here (Gold Coast books out fairly solidly as it is often difficult for me to find some students accomodation, at the same time there seems to be a turn over in unit owners, so something mustnt be quite right – perhaps management. Poor management would have a big impact on the success of the unit.I belong to a shares investment group where almost every member except me belongs to the sapphire level of Peter Spann – not me as I baulk at paying $4000 to have strategies drawn up, but I was fortunate to attend his seminar on the 10th on the coattails of another which cost me $98. A true bargain. While he did go into shares a lot, there was much value to be had on property, offsetting negative gearing, and his opinion on cash flow positive. have just picked up in new book ’10 million in 10 years’ which came out yesterday. The thing that strikes me about the guy is he is upfront, tells you that you can find out all the info by reading, supplies all the books and booklists, is totally upfront about fees and commisions, is ostentatious and proud of it, but then why not. I found his seminar to be an ‘introduction’ to further research, partly the fact that after 20 + full on hours my brain had turned to mush. But perhaps most importantly, he was inspiring. I still would not part with the money as I also believe you can get most things out of books, but he certainly was informative and entertaining. ps His website isnt crash hot tho, a bit confusing.
cheersBe aware that any complications in private cover could cost you dearly. A ceasarian and a distressed baby for us meant a gap of over $4000. This would have been nothing if we had been public. Also be aware that even a panadol in a private hospital would be costed out, add that to antibiotics, dressings, cannulas etc etc and the cost can be huge (this was on top hospital cover). I wouldnt do this again and would have my baby public. Put the money to better use.
Cheers[hair2]Im not a smoker [cigar] Thank goodness but have been struggling wiuth severe upper backpain due to an injury TEN YEARS AGO, unable to sleep all night, unable to bear being on my back, enduring radiotherapy every 18 months, not too mention the incredibale amount of painkillers…
So three months ago I decided this was it. If medical science couldnt help me it was time to take control. So I went back to physio for a carefully worked out plan, hired myself a trainer who is my greatest motivator, changed my diet totally and the $80 a week (sometimes more) has been the best investment I have ever made.
I have had 2 pain free nights, the first in 10 years and the challenge is on to be pain free in 90 more days, and the amazing thing is, I may actually get there. My trainer has seen the tears, depression and frustration and we are breaking through that now.
What use to me, all these properties and my ever growing ‘retirement’ fund if my quality of life has been pretty low, so even though I wont see any money from my ‘investment’, the return is HUGE.[thumbsupanim][thumbsupanim][thumbsupanim]
30 mins a day is all it takes and I will be maintaining this now for the rest of my improved life![strum]
Oh pleeeeeeeease!!!
There is enough bad vibes in life without this. Does it really take that long! A few seconds really to scan through. I enjoy the posts as it gives a sense of personality behind the names, and I am sure no one looks remotely like anything I had imagined. But it’s all good.Please, get a sense of patience and a life, Have a coffee while you scan. Sing a song, anything, to make you feel happier than you do.
The valuation of the property is not compared to houses that are on the market right now but on those that have sold recently. A valuation should list three comparative sales in the same street, or at least the area and why these are comparable.
The bank once valued a property of mine and I expected 20% below market valuation. But the property came in well below and so I went to see them. The Loan officer had just finished stating that she had my valuation there (face down) when she was called out of the room so I turned it over to discover that the valuation was in fact around my original expectation and they had gone another 20% below that. (No guesses “which” bank).
However, a few years later we needed to get a valuation done and same thingt, way below the expected valuation so this time I was ready with the info, told the bank I refused the valuation, and that I would remove our buisiness. I now insist on getting a copy of valuations that I dont pay for myself, and even though they say they dont do that etc etc I have now managed it each time, or I negotiate to have the valuation done by an independant valuer.
I guess my point is you dont have to accept a banks valuation but you do need to be informed about what you are talking about, and its not paint etc. Its how many rooms, square feet, capital improvements etc. They couldnt care less about your colour scheme!
Everdine, I think you need to see the positives. If you had bought the place untenanted you may have had a vacancy period anyway. You may have had only a six month lease, and then another possible vacancy.
Hopefully these are good tenants (you checked that one?) you may not be so lucky next time. They may be willing to sign a higher rent in Jan esp with a ‘bonus’.
I would be more inclined to be concerend on why these tenants ‘slipped through the net’ from your agents point of view. Are you taking his word that the rent should be more (after all, he was selling you the property) or have you compared the rents in the same area/street.If your tenants are good do you really want to upset them and lose them? I had a property leased slightly below market ($20 below), was only vacant 2 days in 13 years and my last tenants lived there for nine of those years.
The rent dollar sign is not the only thing to take into account, it pays to be a reasonable land lord. I would probably wait til Jan if the tenants were worth it but as with the others, it sounds as if you will have to anyway.
sunshineHi Simon,
Could you please explain ‘holding til registration’ I havnt heard of that. Thanks
sunshineMake sure you run a search through sites such as FIDO who have just posted a list (I think of 25) property companies that are being investigated. Can never do too much checking. sunshine
I agree with Kay Henry on this one. It pays to be realistic about repairs no matter what the cost of the house.
If it has a roof, it may need repointing
If it has walls, it may need re-painting.
A hot water cylinder will cost the same no matter the cost of the house.
Termites do not discrimnate between price brackets!
Often repairs come in the most unexpected fashion (such as our IP driveway that got washed away in the first flood ever to hit that area). Storms can hit anywhere, we lost every electrical appliance by being hit with lightning – including garage opener, all televisions etc etc. Not to mention the streets sewerage coming through another one of our houses and the council ‘condemming’ it. (But then, I always knew I attract natural disasters!!!)And sure, things get covered by insurance but there is always an excess.…maybe I shouldnt have any IPs at all!
cheersI cant seem to make the search work. It keeps bringing me back to the all forums page.
I can bring up replies to my query but everything I do brings me back to the forum list???Any ideas??? Thanks[?]
…wars, jealousy, greed, discontent…sounds like everything that comes under the banner of religion to me…
…but then, to some, the love of money IS a religion……that means that…religion is the root of all evil…
The old disney rumour has been around for at least three years now and it was disputed an age ago for the fact stated somewhere above, that australia does not have the head count, local or otherwise to sustain something like disney…
But circumstances have led us to disney paris a few times and give me dreamworld anyday. Yeah, it did struggle and was rescued by a saudi prince (very fairytale!) and each time we have been there has been chokkas, but with two hour plus waits for every ride, me and the little one only managed 4 rides in the entire day! Stuff that! Go to Dreamworld or the likes and apart from school hols there are no queus. We managed 27 times on the scooby doo ride in one afternoon at movie world (Brilliant ride by the way!!!). So no, cant see it happening. Especially as Adventure world is supposed to be built this year in that area (eco-theme park). The council said no to snow world (thank goodness) and Dollys wild wild west may be happening after all, so the area will still be a total goer.
cheers!Bubbles – It is an hour 10 mins to Byron from the Gold Coast. Brisbane is another 45 mins from there. Better value elsewhere as above.
Sure,
I consider ‘unsellable’ to me is a place that would be very difficult to onsell. The apartments I looked at in that price range were either very small, one was over a shop, one was next to a (up for sale) wine bar. I would also look into wether Hope Island really has a market for one bedroom apartments. I think it always boils down to due diligence…but I do think Hope Island is in a state of change and has quite a way to go yet until it comes into it’s own.Hmmm….Hope Island. I don’t believe there is much left in it for the current market but of course history does show…etc etc. You know the story. Two years ago one street back from the water brother bought a fishing cottage for $130,000 – land value only. Sold 12 months ago for $220,000. Other brother has just bought in same street for $440,000. Land value only. The residents have just won their fight against council to stop a huge multi story car park going in with ferry etc which was a big case here.The canals are currently going through..but also a few other things, if you are going to live there the mozzies are very very bad, can see them rise off the ground in sheets of mozzies some nights, also there were quite a few problems with townhouses and apartments built there that were all ovber the news a few years ago. Cant remember exaclty but built without proper planning I think, so just a hint to be very careful about the history of your unit. On saying that…yes, I think Hope Island will come into its own – near the water. It has a strong community spirit and some serious money going in there and has a lovely ‘fishing’feel to it…if it just wasnt for the mozzies. Also be careful what they actually call Hope Island, it is growing bigger and bigger and strecthing right out to the highway. Same old thing, do your due diligence. The apartments I have seen there cheap were almost ‘unsellable’ for one reason or another. Goiod luck!
SunshineI watch TT as the preteen loves home and away and we seem always to be doing the dishes at 6.30. Makes for good discussion/laughs[
]…but the show reaches a target audience of mums and dads who may not be savvy investors so it is interesting to note how media manipulation can be portrayed.…but arty, am interested to know why you think there will be a big drop coming, and not just the flattening out as seems to be the general feeling?[
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SunshineThanks Redwing. I understand that CGT is applied for the time it is rented. I have been looking at various other posts which cover PPOR and then decided I should redefine my question…
Is there a minumum time frame you have to live in a property for it to be your PPOR?
i.e.
could I live in it for only 1 month and then sell it?
Thanks.
Thats a good sunday morning chuckle![:0)]
Hi Richmond,
It looks just fine but lacking a bit of ‘warmth’. I agree with the rugs, especially under that coffee table – a nice flokati (white) will soften all that timber look. one or two squashy cushions, maybe a throw draped over the edge of a sofa and a few books as thefirstbruce said. If it is a holdiay home you want to give it a ‘relaxed’ look so that a prospective buyer would want to kick off their shoes and not think about work. It can be done quite cheaply, it just needs the egdes softned.
cheers, sunshine
]…but the show reaches a target audience of mums and dads who may not be savvy investors so it is interesting to note how media manipulation can be portrayed.
]
