Forum Replies Created
Hi ALSK
There is provision in the Residential Tenancies Act for a person who has been living in premises for some period of time to ask a Tribunal for an order that his tenancy be recognised.Since you have been living there with the landlord's / REA's knowledge, they have been dealing with you already and accepting your rent money.
In simple terms, the Landlord just wants the rent paid on time and the house looked after, so why not put it to the landlord (REA) in those terms, ensure the house is spotless and ready for the inevitable instant inspection, and attach a bunch of rent to the request, along with an application form and bond – money talks.Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Legend.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
How are you supposed to make money out of it ?
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi ShellH
Personal opinion and suggestions.
Positives.
Ad says
next to parkland,
BIRs,
split system air con
gas heating
Negatives
photo shows a window rattler, not a split, rattlers are not popular
very bare
no internal shots
unemotional ad (could say "ready to add your own touches" , or " add your own garden "
no mention of kitchen or bathroom features
no mention of parking featuresYou could write your own ad and send it to the PM.
Offering a free week's rent should stir up something,
better than watching another empty week go by.
You could ask the PM to put a sign on the lawn "For Lease", as some people
tour an area before visiting agents.
Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Kate
Suggestions
for your first property and considering the high return, you deal with an agent.
Shop around Orange, cut the best deal you can find and over $500 pw rent suggest you try to restrict commission to 6% and 50% of first week's rent since they're making enough for very little effort since you already have a tenant for them and a good one at that.
If there are lawns, cut them yourself or use a local mowing service to cut them as required, no more than 15 cuts a year coz the winter is harsh. Engineering co should pay not less than monthly in advance and a bond. (don't let the agent kid you into paying the first week or month's rent as commission. Agent should pay you monthly less commission.
Ask around a few of the motels for a cleaner, they're all too busy mondays so Tuesday rate is $25/hr min 2 hrs.
You only need a lease with 3 months fixed, then on continuation.
Use hardy leather furniture and make the house comfy, the mining guys are highly paid and come from very comfortable homes. If they're gone every weekend, plan key pickup & return facilities.
If you PM me I can give you a contact in Orange.
I made a lot of assumptions here for expediency, and may have put in too much unnecessary info.
Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Jack
I don't think the house prices in Bathurst reflect the high returns possible from mining guests, yet.
The market in Bathurst caters to others mainly , but mining people don't have time to spend searching, they need it now and every week.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Suggestion.
If I was renting to the mining market, it'd be like this :
Fully furnished
3-4 brms
2-3 bathrooms
huge gas HWS system(s)
Gas ducted heating
R/C split system air con to every bedroom & common rooms like lounge
BBQ & deck
Turn lawn into parking
Hi Speed wi-fi
Big flat screen
Beer fridge in the garage
The mining guests are mostly guys, want comfort and have a big budget
and rent long term.
At the moment, my friends with motels in Orange, Bathurst and Lithgow are under pressure to rent out every room to mining Monday – Friday, some starting Sunday night ready for the early starts. M-F occupancy is 100% most places. Weekends are slower and reduce the weekly occ rate to 80%.
No motel will rent out all their rooms every M-F to a mining company for fear they will lose all their existing client base and have nothing if the mining co moves the men. So a well furnished comfy big house or units would do well. Send in a cleaner weekly, and leave a blank page for repairs & maintenance. Mind you, a lot of them are tradies anyway.
Rent it by the week or month as a package, charge for utilities as well.
Advertise in local papers. Price , charge for whole house only at the rate of $200 per room per week + utilities.
Their option is to pay for a motel room at about $80 per night.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Thanks Angel, you're very kind, inspirational and energising.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
High praise to some people here from me :
Nathan for starting and fuelling this excellent post
Angel for explaining her journey and success, inspirational, (I'm going to chisel SWIM into stone and give it to my kids)
Richard for his journey and insight
Jake for the absolute gem about eagles & turkeys – just being here amongst this esteemed lot is flying with eagles.
lordopg to be congratulated for trying to change the average mindset into one of great success, and to achieve it you have placed yourself in the right place and surrounded yourself with successful like-minded people and said "I will succeed", and by doing so, you will.
You're all legends because you're here and doing it.
And I guess all this is ironic being done on the Forum of Steve McKnight who has written 2 books on the subject of acquiring a property portfolio in a short space of time – 0-100 properties…. and 0-130 properties …. , .We managed to get ahead by using a small deposit and borrowing against family real estate equity to buy and operate a motel leasehold, then bought the freehold, now sold that and expanding into buying several leaseholds to be run under management. Didn't own a home to start with and motels provide one free onsite so it seemed like a good idea and it worked just fine.
Just to repeat my earlier question – what's the average appreciation rate on NSW property since 1960 ?
Can anyone tell me or where I'd find it ? The reason for the question is that any strategy relying on natural increase in property value over time should at least know the long term average.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Patrick
Uni fills lots of rental properties especially early in the year. Near the uni is popular.
Bathurst weather is extreme winter & summer.
Most popular rentals are those with gas heating & roof mounted evap coolers as the cheapest most effective, then R/C aircon.
Insulation very important.
Windradyne is popular for tenants, see Ribbon Gum court, Raine & Horne PMs are well regarded.
Heard some buyers avoid Kelso.
Plans afoot to build more offshoot race tracks onto Mt Panorama.
Bathurst is a great town.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Does anyone have the figures on this ? :
What is the state average annual appreciation rate for houses and units
in NSW over the last 50 year period ?The purpose is to have some average to use to crunch an investment scenario I'm working on.
Any assistance appreciated.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Mal
Scott & Anthony have nailed it.
Assuming you are talking about buying one unit, not the motel.Why would a motel sell off popular units ?
If the motel is managing them for you, think about how or why this would be more profitable for them if you funded it instead.
Exit strategy depends on desireability of the property which depends on CG & nett profit and the security /reliability of nett profit
after costs of operation such as booking commissions or fees, net fees like wotif, advertising, cleaning, maintenance, repairs, periodic refurbishment, strata (if applicable), all of which are paid by the investor.For some accommodation operators, it's cheaper to finance each unit by selling them to an investor on say a 5% return basis than pay the bank 8%+ for commercial finance.
Others give the investor the leftovers or a pro-rata share of the pooled leftovers from all the units after operational costs are paid out, and the costs are often charged out at a very high rate above actual.
e.g. cleaning a motel unit takes 20 mins, 30 minutes max. actual cost $20. Investor is charged $75. Difference is management's commission.Investors replace the bank and guarantee to pay the fixed and variable costs, through quiet times and busy times,
definately a good deal for the operator.
Examine very carefully Scott & Anthony's points to see if it's also a good deal for the investor.Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Jake
I worked out $300 p.w. rent x 50 weeks = $15,000 rent income p.a. , allowing 2 weeks for costs of tenant in/out.
$15,000p.a. return on the property cost of $200,000 = 7.5% gross rent return on investment.
It's 7.8% if you use a 52 week year.Is that what you mean ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Nathan
Yes, welcome to the democratic side, no castles here, and there is hospitality.
You mention $300 rent return on $200K = 7.5% gross rent return.
What is the degree of difficulty or ease in finding these deals ?
City, fringe or country ?
Are you referring to a reno, facelift, weekend cleanup rental or what ?
Some details along these lines may help to assess if this is seems workable.
Thanks
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
The reverse cycle splits sound good, covering all seasons.
Tenants won't line up to pay a good rent in a cold area for a poorly heated house.
You might consider what a month or two of IP vacancy is worth plus tenant turnover plus your own comfort in the meantime.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
I suggest you ask those who professionally value motels that excellent question.
Hopefully their method of valuation should not differ too much from yours as a buyer.
e.g. leasehold – period remaining, lessee's lease conditions, nett profit, condition of goods n chattels, current and future security of business.
freehold – land value, nett profit, condition of building and other improvements, condition of goods n chattels, current and future security of business.Land values change according to local market conditions.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Zaul
Preserve that energy drive n enthusiasm, and use it to build a plan and some capital.
You have opportunity, need to build on that.
Good luck, go for it.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Kindren
Coffs.
Positives.
Strong motel town,
Plenty of through and destination traffic.
It's one of the few places where the Pac Hwy goes through a town on the water, rather than having to leave the hwy and travel 7-10 kms to reach the town. Makes a difference.
No bypass.
Strong town infrastructure, beach, marina, CBD, strong local economy.
High tourist activity.
Decreasing travelling time from Sydney or Brisbane.
Road improving.
Some tired competitors in need of refurb.
Negatives.
Excessive discounting by some (priceboards)e.g. group between Toreador and hwy lights.
Competitive.
Some motels flooded (e.g. ground floor Bentley in town opposite RSL, Council reckons nearby stormwater creek thru park now cleared).
Periodic refurbishment essential.
Some seasonality in sales.BTW. Country Comfort should do better, don't know why it isnt, check traffic noise, net mktg or refurb situation.
Hope that helps, all only an opinion, usual disclaimers apply, exhaustive homework DD is your best friend.Here to help if you need it or want to discuss specifics, PM me / email.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
After Bunnings bought out the main local hardware concern in a central west NSW country town last year, the application form for credit required the applicant to agree to using their real estate as security for default.
Read the application form very carefully.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Kindren
Welcome to the Forum.
The type of motel is very important in giving an opinion on "motels in Coffs Harbour".
Are you seeking a motel ?
If so, then if you clearly explain what style of motel you're seeking
I can be more specific with Coffs, because it all matters.
Include your preferences with
price bracket,
stars,
age & condition,
leasehold or freehold,
restaurant or B&B,
number of rooms,
chain or not,
any other preferences.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
