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Thanks all- some interesting input. I guess these properties are really no different, other than that they generally are auctioned off, I guess the reserve would be set at median market value?
Anyway, I have a better understanding of what goes on now, cheers.[cap]Just a note from a landlord’s point of view… I have always endeavoured to do my best to ensure my tenant’s happiness and given him any assistance/comforts he required. But over the last month or so he has fallen into financial hardship- so we did our best to be leniant with him falling behind in rent etc, but he has just vacated early and left the property in a fair old mess and is also still behind by 3 weeks rent. As far as I have heard so far he doesnt want his bond touched- o.k so he obviously needs the money but so do we!! after all we have been covering his rent shortfall for the last month. So how can it be fair that a tenant can leave when behind in their rent and expect to keep all of their bond?
[stunned][biggrin]Thanks MollyM- very helpful info! I think deciding to sell will help me get started with some intelligent investing instead of holding me back. Property Investing here I come…
Thanks ac, yes we are in a similar boat- going down to one wage soon (starting family soon) and not having much cash stored to cover any vacancies in IP. Thanks for your insights, been doing a bit of soulsearching myself and have decided to get the IP valued- to see if it’s worth selling after costs and CG tax. Does anyone know how I calculate how much CG tax I’ll be up for? We bought the property for $170000 used $20000 to renovate, expecting between $205-210000 for valuation; does the CG go on what we bought IP for or price after renos? Thanks all.[blush2]
Thanks guys, my reason for considering pulling out was because I was going to sell and use any remaining profit to fund deposits on cf+ properties. I dont see house prices increasing in the area (sth of Adelaide), and believe I have increased the rent to market maximum. For our last rent increase we added a carport, and before that- a security door and extended fence.The current tenant is leaving in end of June, and if we can’t relet for a while we cant sustain our existing financial position ( we are already paying IO ).[blink]
We pay 8.8% in Adelaide.[blink]
I’m also quite new to the idea of cf+ investing, I recently stumbled across a permanent sited caravan that would have been cf+ and even put an offer in. But after getting some advice from my fellow investors and looking more carefully into it I decided to pull my offer off the table.This was due to a couple of reasons: 1/ I found out that you cannot get a homeloan for these types of properties ( this means I would have to use all of my existing equity in my home, as well as making it difficult to resell later ), 2/ I found out that the property had been on the market for around a year ( this put up warning signs in the way of resale too), + why had this seemingly great cf+ deal not been snatched up in a year by another investor?.
Dont get too head over heels before you find out everything you can. If you can afford to fund the purchase without a loan then that’s great- but be careful not to jump in with your heart instead of your head. Good luck and happy investing! veronicabridges[biggrin]cheers to all who have replied so far, really good info ta Have replied to you all individually.[biggrin]
I am also very new at this, and dont have a lot of spare $$. Concentrate on properties under $60,000 you can type in a search on properties up to a certain price in realestate.com. I have come accross a few so far, but make sure you work out if they are positive cash flow and try to get them already tenanted, this will reduce risk and you can offer a much smaller deposit too.
Regards, veronicabridges.
