Forum Replies Created
- Scott No Mates wrote:The Australian Financial Review, just a little non-descipt newspaper
Also noted another sale indicating that prices being achieved have dropped 40-50% over the last 5-7 years. There are some big losses out there just waiting to be crystalised. That’ll put more pressure on rates & access to commercial funding.
Hi Scott.
Yeah thanks for the heads up on the obscure publication.
If that drop refers to Katoomba you may be right, it’s suffered as a destination plus many tired properties, didn’t want to give them any more bad “press” but we don’t have the resources to market a region, so we target strong trading turnkey operations in strong locations for the reliable immediate and ongoing cash flow. We find it’s easier.You’re right about some bargains out there. Banks are still tight & choosy on motels.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I’ve been waltzed around by some slick tenants in many tribunals during my time as a PM in NSW, and this is what the Tribunals told me to adopt as an attitude. Someone please correct me if the law has changed, I’d appreciate an update.
Apart from the initial rent in advance at the start of a lease, the Act says a tenant must always pay rent in advance. It does not say how much or how far in advance. Fine. This means that paid days are days that the rent is paid for, and a tenant is not in arrears until the sun sets on an unpaid day.
So demands for rent cannot be enforced unless the rent is ” in arrears. “
If the law has changed in this respect it’d be very good news.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Scott
What’s the AFR ?
Katoomba is such a magic unique place.
But it sounds like the visitor numbers have been slow for a while, don’t know why
when it has so much to offer.
Depending on their condition and about 10 other vital factors, it could be a good deal.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi All
A quick update.
We bought a leasehold in Wagga Wagga, NSW on 26% ROI.
Settlement due end of Nov.
Excellent condition, strong business, hence the lower ROI.
No restaurant.To speak in positive terms, during this process we have experienced
enlightening and rewarding challenges in the many areas relating to the purchase of a motel and business :
finance, solicitors, business brokers, finance brokers, banks, contracts, accountants, valuers, communications, DD, negotiations, motel chains, suppliers, council, zoning . . . .
To speak in clearer terms, it was frustrating and stressful mostly due to
one bank behaving so badly we may still decide to lodge a complaint to authorities,
and bungling brokers.People in key positions with expertise who act quickly and professionally have been hard to find.
However we did find some along the way. It makes a huge difference to be surrounded by a good team.For prospective purchasers we have some suggestions based on our experiences with the current market, and those who have questions, PM or post here, and we’ll do our best to assist.
When negotiating a deal or price, we try to ensure the deal and price is subject to enough conditions like satisfactory final inspection, item for sale meeting sale description after detailed inspection, valuation meeting price agreed, satisfactory pest inspection, finance under terms acceptable to buyer, expenses as disclosed, your solicitor and accountant being satisfied with all documents, full disclosure of all known faults, leaving conditions open for some unforseen factors, because there will probably be some.
Commercial finance is available as low as 7.5%, to our knowledge, but there may be better deals out there.
Finance costs increase with risk factors like business experience, collateral, LVR,.
The quality of the motel and business is a prime risk factor.Valuation quotes ranged from $3K – $5K.
Murphy’s law is now operating, several excellent motels have finally just appeared on the market,
as soon as we committed all funds.We try to be a careful investor, never a punter.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Jack.
Your opinion on financial matters and predictions sound well informed and delivered with enthusiasm and passion.I support your right to have an opinion on the topic and to express it,
but your comments about me are unpleasant, personal and not welcome.
Forumites discuss issues, are encouraged to post their comments about issues
in order to stimulate debate about issues to exchange information to help each other.I post on this forum to help others, to contribute, keep the numbers up, but not to invite comments of a personal nature.
Focus on the topic please.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Sounds like a chicken and the egg situation, but only short term.
Depending on how long it would take to replace the deposit, the values are :
deposit – $3,400
education – priceless.This is provided that the “education” is sufficient to enable you to invest safely in your selected field.
And it’s likely that trying to invest and reach a goal without sufficient education
may provide more financial setbacks than education expenditure.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
3-4 months of rent commission equals the relet fee. Even a month or 2 of vacancy before a relet is more profitable for a REA than full time occupancy. Crunch the numbers yourself on one of your own properties and see how long it takes the REA to earn the equivalent amount of relet fees in commission.
BTW – I should’ve mentioned in my post that the single most prevalent annoying damaging shortcoming of PMs and staff is definately poor communication – not enough feedback to property owners or none at all.
2nd place should go to PMs poor decisions – due to either lack of knowledge or poor attitude.
3 rd place is No.1 again, either buck passing, the mushroom deal or dead silence, because they don’t want you to know about No.2.Try to find a PM where it’s a clean rent roll, not full of lousy properties which attract problematic tenants – that PM will be too busy trying to deal with dubious tenants who also resent paying rent for poorly maintained properties, and landlords who resent spending money.
Also look for a low number of properties per staff member, as close to 100 as possible, depending on the quality. Remember, in terms of a PMs workload, 100 lousy properties is like 300 good ones. Taking it to the extreme to make the example easy to understand, – If your PM is handling heaps of properties for “slumlords” in a severely socio-economically challenged geographical area, don’t expect the PM to have much time to look after your property.Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Is this property listed by a REA ?
If so, REA must be slack, not even bothering to take a current photo.
Slack REA spells opportunity.
If selling privately with an old photo, same applies, opportunity.
Have a look on Google street view.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Requirements for a good PM dept.
Property management is a people business.
Success requires quality and quantity.1. QUANTITY – SUFFICIENT STAFF.
It doesn’t matter how willing, able or professional staff might be, without sufficient staff to handle the workload then everything suffers – staff burnout n turnover, work not done, work quality declines, customer service declines, downward spiral, it’s only a matter of time.
2. QUALITY – PROFESSIONAL STAFF.
Property management is challenging, without professional staff with the right attitude it becomes a big drama every day.
With professional staff, it is profitable in itself, supports the Agency sales dept in lean times, and provides sales listings on a plate.
PMs take a big load off landlords’ shoulders.If an agency is – adequately staffed, and the PM under-performs, then the PM is not professional.
If the agency is not adequately staffed, then the PM under-performs, then the service is not professional.
It’s not rocket science.Anything else is just detail, because if an Agency has sufficient professional staff, the job gets done properly,
and everyone’s happy. Did my hard yards as a PM, once was enough for me.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Emma.
Street appeal suggestions.
You choose the colours, decorator I’m not.
Paint over yellow with same colour as bricks.
Add front fence.
Paving paint on driveway.
Spray timber (?) side fence.
Clean roof tiles if it’s within budget.
Pic too blurry to suggest more.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Thanks christianb, love that comment, that’s a keeper.
Guessing where CG will be highest is challenging in these times.
Buying below market value on strong fundamentals seems more like “investing” to me than guessing or punting.Don’t banks demonstrate their forecasting on future interest rates by the positioning of their fixed interest rates relative to their variable rates?
That being the case, it should be easier to forecast buyer demand, which affects prices.Looks to me like Australia is as well placed to handle GFC #2 as it was to handle GFC#1 , and even better perhaps after experiencing one so recently. Less knee jerk reaction is likely, and human reaction is what makes and perpetuates a recession.
Wish my capital hadn’t been so tied up recently, could’ve bought some blue chip stocks cheaply, some banks were down just on sentiment. Oh well, live n learn.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi All.
Update.
Yay – We finally have the purchase of a motel leasehold under contract, hope to settle and move in about 2 weeks.Banks were less than helpful even through brokers. NAB gets the wooden spoon, CBA was excellent.
In a few days we’ll post more detailed info here to assist other motel investors.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Rusty05
If the Forum structure had a “Like” button, I just hit it for your post.
Cheers
thecrestPS Attention Forum Administrator – please add a “Like” button to posts, if you can.
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Steve
Good one, thank you.
I suggest the techies ensure that the place where people can register their interest is working well and capable of handling the volume.
Count me in.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Go Jenny. The value of meeting and mixing with like minded people is hard to measure, but it motivates us and validates our goals n dreams. The costs are minor compared with just about anything you do in real estate.
Have a great time while you pursue your goals..
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I don’t feel so unenlightened when the gurus are wrong, although guessing wrong where the RBA thinking is concerned is not necessarily wrong but timing. RBA’s thoughts and actions are no doubt predictable by gurus but it can be a matter of when RBA decide to take the predictable action.
We’re about 24 hrs away from signing with CBA for a large loan to buy a motel leasehold so a cut is very welcome.
Always fun to test yourself, even if you’re not always right.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
This is a very good post and intriguing question.
The contract to pay for the installation of this different type of system and hence trigger the rebate to that person might be the key.The question is : whose right to the rebate is superior – the property / equipment owner or the electricity consumer ??
Another landlord vs tenant claim has been born.
I guess the equipment you bought generates the extra elec hence the rebate, not someone’s occupation or electricity consumption.Suggestions. Carefully read the contract between you and the electricity supplier to see who it says has the entitlement to the rebate and why –
” the property or equipment owner ” being the person who contracted and paid for the installation and equipment, or
” occupant, consumer etc” being the person whose name will be on the electricity account and who will be living there, consuming electricity, and presumably paying the bill.If the consumer / occupant / tenant can successfully lay claim to the rebate, and tenancy advocates will most certainly try,
then we have a new scenario for landlords, and good reason to increase rent.If the rebate entitlement belongs to the property owner / original buyer of the system, does it transfer to a new property owner ?
Hopefully the entitlement to the rebate can be separated from the bill with a tenanted property and paid to the property owner.
Just my thoughts.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Good typo MJP, if you’re really looking for “goof” financial advisors, you could end up with hundreds of recommendations.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Couldn’t you request the electricity supplier re-direct that bonus to the property owner (yourself) ?
Hope so. Sounds like a brand new can of worms.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Bonsia.
Haven’t assessed the NE area for some time now. Outdated info won’t help.
Graph and compare the towns occupancy rates and rev per room from ABS stats.
Check the traffic counts on the main 4 towns allowing also for east west which Armidale doesn’t get.
Which ones are bypassed or will be soon ?
Restaurant or not?
Tamworth and Glen Innes are well regarded.
The others share the same north south hwy so it’ll depend on the merits of what’s for sale.
Obviously net effectiveness is a big factor, but if traffic count is low then the numbers are not going on that road,
or not going to that town or local area, then
they don’t want to see a local website.It’ll help to get a clear picture of what you want, and be certain of how much you can spend
according to the Bank, and allowing for stamp duty and legals :
star rating
size
restaurant
pool
residence
condition
chain
town facilities ( golf, other sports, medical, infrastructure like airport, rail, communications, ).You probably know all this already but just clarifying your search criteria saves time and
makes you analyse your needs and wants which helps for a better outcome.What price bracket is of interest and what does your wishlist look like ?
Info shared helps others learn on the forum.
Suggest you add an email address to your profile so you can get private messages on or through the forum.
Happy to help if you have more info.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
