Forum Replies Created
Thanks everyone!
Whoops…I think I started something here……
Originally I posted looking for some expert advice to use on bf about why this wouldn't be a good investment. Basically, I think property investing is a wonderful thing, but was against him spending how many weekends off working on a place that needed the work…..we have enough unfinished jobs at home without him spending his 'spare' time fixing up another property.
We won't be purchasing – but I had to use force to stop him from proceeding. Plan is now to find a property with less need for a fix up in the new year.
To scamp: the reasons the property is cheap are all apparent – eg kitchen and bathroom on original order, windows needing restoring, proximity to the railway and general neglect etc. Without these issues it would be selling for the standard local FHO entry level of 120k+
BF is a carpenter and inspected with a builder mate, there are no hidden nasties – conclusion being that these Victorian 1960s railway cottages where well built and are quite solid.
An earlier poster speculated on a 30k fix up – but that is unnessary….way too much.
All things considered, it probably would make a good investment – but only for someone with the time to do the necessary work – possibly someone without small children and a nagging partner!
W
PS; In reference to future growth in the area here is a link to one of the industries set to expand locally…this isn't the only one either…hence the reason our future IP will be in the area:
Surely if this had potential – as a small scale or larger reno for future IP (or quick turn around) it would not have languished on the market for so long, nor had so many price reductions?
If it was vaguely suitable, wouldn't a investor have snapped it up by now?
Anyways – probably a moot point. Last communications we had with agent, owners were looking at taking off market to do fix up themselves.
W
Well it looks like I was right!!!! We didn't follow up on this 'renovator's delight' property and months on it still sits on the market. BF might never hear the end of this from me…that it was unlikely to have been the brilliant property deal he thought it was.
I note that eventually the agent's updated the listing, mentioning that is has aluminum cladding, and is opposite parkland. They also recently dropped the price to under 100k.
I feel vindicated in my opinion…thanks for your help everyone!
W
Hey C2:
Thanks…all great ideas…especially 'bout the cheaper tenant during the fix up.
C2 wrote:Finally, be careful of what agents tell you in regards to what rents you can get.In this case I was certain, as I am familiar with the small group of identical houses along that particular street and what they attract for their weekly rental….so in this one instance I can actually trust the agent.
Thanks!
W x
Thanks Adld:
Some weeks on, we are still undecided…methinks property investment takes more decisive action than we are capable of…d'oh!
Anyway, he still thinks all the numbers stack up well on that particular property and that it will soon be off the market, if it hasn't already been snapped up.
We have resolved to move more quickly next time!
Best wishes for your search for your 3rd IP!
W
Thanks Adld:
We are just getting ready to put our offer in for this property….looks like he's won this particular argument.
So we'll see how it goes…if we become property investors…and then contact you for a chat?
W
Thanks Duckster:
I had better hide your comments from him….as you make it sound a more attractive proposition than I would have thought! Ugh!
Certainly, the work is minor (so I am reliably informed!) so there is no chance of over-capitalisation. A bit of carpentry and tiling will deal with the bathroom/kitchen/laundry. The windows can be partially restored, the worst couple can be replaced with second-hand frames. We have a band of tradie nephews on hand to do the more skilled work, they have ways of shoe stringing this.
This place will rent for $130 without anywhere near 30k of work. Original but neat would be fine.
We are located less than an hour away, so travel is not a problem. We are certain this is the place to invest, because of the low local unemplyment rates, the re-opening of the dairy company site, the headquarters of the new natural gas company, and the near by energy farm opening up shortly. It seems to be largely undiscovered by investors out of the district. Plus it is a gorgeous, historic town, with amazing crater lakes, and is situated on a major highway.
I suppose the part where he and I disagree is the age/type of property. The next available properties are all 120k – 140k all ex-govt, but in less desirable locations, often only 2 bedrooms & often built from fibro. These rent for up to $150pw.
I am wondering about skipping that segment of the market, spending more and going straight onto a basic brick veneer, with less upkeep. This of course is influenced by my hope of us using this property – in the long term future – as our holiday house.
Perhaps I just have difficulty with going with the lower end of the market……
Hmmmmm………
