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You need to find the right house and the right landlord. If you're looking in the area near big school/University where there are lots of student accomodation, i dont think you will have any problem finding one. Chances are they've rented to the students in joined tenancy before. Disclose your plan at the beginning to avoid later problems, you might even get some tips from them.
Some landlords who ever manage student accommodation actually quite happy when someone wants to be the main tenant and sub let it. That means less work and less headache for them. I do the same thing with my IP.
Question is have u ever live in share accommodation house before? i suggest you try and observe it before you pursue this.I have a friend with similar situation as yours. Not an easy game to play. For me the easiest to start is first ask yourself, where you want to be now and then. Then how good your knowledge in currencies and their options.
Multi countries property is always exposed to currency exchange risk, which sometime beats the investment itself. A friend who bought some IP in HK, is currently pretty depressed that the HKD is 30% less than what it used to be to AUD, thus all his prop value are 30% less to his base currency.Simba, I'm working for developer who used develop one of the apartment in dockland. We sell off the plan and sold out before the construction finished. I can say that dockland is pretty warm at the moment. Demands are great there, but lots of supply as well.
From what I know there will at least be 10 or more new apartments in the area until 2010. So you if you really prepare to wait for a while, I dont think that you'll be losing any money.I dont call it Bad, I call it a Bargain.
Theres nothing wrong with the west, they just used to be industrial areas.
As the prices gone up everywhere, smart developers convert them to residential, and big smokey industrial get pushed further from the city. Now whats there are some distribution hub warehouse, which means job market and strong rental market.Its only a matter of time before western suburb that close to city are going to out perform their far east counterparts.
I used to live in Sydney, and eventually the areas surrounding the city is going to catch up as the development and improvement going along.Paul
Currently doing the same thing.
I have a house in melbourne that could be rented for $350 /week as a whole, currently being rented on roomy basis. $110 /week. 4 bedrooms, 5 minutes walk from a uni.Pros:
– Better return, thats allCons:
– 4 times the efforts and paperwork.
– High maintenance, they would never clean the common areas as they think its not their responsibility
– High turnover, as u know student come and go. (it would be better to get professional / people with job)
– Low income earners, if they can only afford to rent a room, sometime they cant afford at all.
– Higher Insurance premium (Make sure u notify or discuss with your insurance about this changes, to get it covered)
– Bills, bills, bill, how you work this one out? on share bills or that price including bill. If that price is including bills, expect to spend around $20/room/week on all bills. They never care about bills once it is included, they may go out and never turn off anything, heater might on 24/7. If its on share bill basis, its hard to calculate the bills with people come and go and bill may not arrive by the time someone leave. And never open the phone line on your name, they could make thousand dollars phone call and suddenly dissapear.
– Hard to trace damages on common areasConsidered:
– Rental market is currently scarce, you can get 98-100%occupancy /year if you rent the whole house.
– Using agency that specialized in this field, they normally charge 10-15% management fee. 6-7% to rent the whole house.
– For me, once I got all the rooms filled in for about 3 months, I asked if they want to rent the whole house together,
reduce the rent by 10%, prepare new contract, and let them worried about the bills them self.So if you prepare to do the extra work for the extra return, go for it.
