Forum Replies Created
Dr X. Like the others, I am impressed with your post. We have three boys 17, 14 and 10 and I am always amazed when the newspapers do their usual stories about how much children cost. They cost as little or as much as you allow them to. They don’t need expensive toys or gadgets, just lots of love with enough discipline thrown in to make them good people.
I totally respect those who decide that they don’t want children for their own reasons, but I wonder if some couples are tipped against having children after reading these stories about the cost of raising them. What a pity if that is the case.
Having children is the most frustrating, hardest thing we have done, but it is also the very best thing we have done. I cannot imagine what our lives would be like without them.
We certainly have our ups and downs, and we certainly are not the “Brady Bunch” but I really get annoyed with these scary financial stories.
My thoughts, Wylie.
We have just done the same type of job in Brisbane. We pulled everything out prior to painting and floor polishing. Plumbing and electrics were roughed in and I painted the whole interior while hubby did the building work. Our sons helped at times, but sometimes it was better to leave them at home to save having to organise them and sort out the inevitable fights.
After I had finished painting, we had the floor sanded. This was good because I hate using dropsheets and having the walls and ceilings painted before the sander came in meant I only had to touch up the skirting boards where the sander had bumped them.
We put in the new bath and tiling ourselves (had plenty of practice – looks great). I painted the new bathroom skirting boards on saw horses and only have to touch them up where they have been nailed in. I find this much easier that painting two or three coats in situ.
The old verandah had been turned into a sleepout and third bedroom. These floors presented a problem as they are hardwood with gaps. We ended up using $20 sq m (plus $5 sq m underlay) timber look floating floor. Quite cheap, looks great and has a 10 year guarantee, although we will probably reinstate the verandah before that time. After the floating floor was finished (today) the skirting boards (pre-painted) went on. Just need to touch them up tomorrow.
I find on doing these types of renovations, that the floor sanders are often the tradesmen who you have to work around. They are booked up so long in advance that it means a bit of juggling to fit things around them. It also means you get a week off when they are inside (whew!!).
Good luck. I am (right now anyway) COMPLETELY SICK OF RENOVATING. Each time we take on a job I say “next time, I will pay a painter”, but each time I end up doing it because painters cost more than I do. However, “next time, I will pay a painter”. Yeah RIGHT!!
I don’t know if you are doing the work yourself, but the other tip I would offer is that if you are working with your husband like I have been, ask him if he is completely finished his building work before you paint. Every time I finish painting something, hubby decides the walls need a bit more gapping, or that needs changing. I very nearly gapped him!!
Best of luck, Wylie.
We also calculate what we think the house should be insured for, taking into account block clearing, etc. We then increase the figure we get so that we are over-insured.
Being under-insured is really scary and for the extra few dollars in premium, we go the other way, just in case.
My thoughts, Wylie.
We currently have an ad in the paper for the house we have just bought and renovated. We have never used an agent to manage our IPs but have many times given local agents the opportunity to find us a tenant as a “casual let”. They take the first week’s rent.
In over 25 years of having had IPs, I have never been very impressed with this arrangement. I don’t bother any more giving local agents the “casual let”. I totally understand that they would let the houses which they will be managing in preference to our “casual let” but the last time I tried it, I did not get one call from any agents with even ONE prospective tenant.
The other thing I have noticed over many years is that the rental quoted by local agents is always lower than we manage to get ourselves.
I know we take an added risk in that we don’t have access to the “black list” of bad tenants, but we use “gut instinct” and it is fairly reliable, with only a couple of minor problems over the years.
My thoughts, Wylie.
We got back from Los Angeles to hear that there had been riots. Nothing on the news in the US that we saw. I wonder if they have even heard of us sometimes.
Who knows if knocking off $200K is cheeky or not. We settle tomorrow on a house where the owners were asking $655K (under advice from their the agent). Sat for over six months and we contracted at $460K. The asking price isn’t always what a property is worth.
We have considered buying a “dream home” a number of times, whenever a local “landmark” house comes on the market. Each time we consider selling our IPs to reach the “high end dream house” but each time common sense has won and we have kept the IPs and decided to stay in a “very nice” house.
We have lived in a “landmark” house before and enjoyed the quality and ambience but I wouldn’t want to live on baked beans and we have friends who bought their dream home but have nothing to sit on (and probably live on baked beans).
It is a decision only you can make.
Good luck whichever way you go. Regards, Wylie.
We are in the middle of a renovation on an 80 year old house 5km from Brisbane city. We have –
1. Painted internally.
2. Pulled up carpets and polished floors.
3. Removed a wall so the living area and breezes flow from front to back door.
4. Removed the ugly bathroom and are ready to put in a new one.
5. Bought some bathroom fittings on eBay, got some great bargains. Sold the old tub on eBay too.
6. Pulled out 1950’s built ins. They were beautifully made but didn’t suit the era.
7. Repainted the kitchen and tarted up the benchtops. It is 1950’s but we didn’t want the expense of a new one. We did remove the big base cupboard under the elevated stove and have bought a stainless steel freestanding oven/cooker at a very good price.
8. Ready to instal a $24 per metre floating floor (not real timber, but looks fantastic) in the front closed in verandah. This solves the problem of gaps in the original verandah boards at a cheap price, which we won’t regret when we revert the rooms back to a verandah down the track.
9. New lights in every room, again bought extremely cheaply, but low voltage downlights to “sex” the place up a bit. Also changed the two rusty ceiling fans to brushed steel ones and got rid of the cereal box size old controls.
10. New curtains – trendy ones, but again, bought ages ago ready for the next reno.
This house will turn from a well kept, but very tired “old lady” look to a modern, trendy rental and we are very happy with the changes.
I’d guess we’ll get $60 more rent per week and a better type of tenant, but we won’t know for a couple of weeks.
Very satisfying.
Wylie.
Just a note to add about the tenancy tribunal. About two years my parents were having trouble getting some tardy payers out. Had given the proper notices etc. They kept paying at the last minute and notices were re-issued a couple of times before it finally went to the tribunal.
Contrary to what many think, this magistrate (whatever they are called) gave them notice to leave. If they failed to pay during the notice time, they were out even earlier. It was very fair. My parents were treated courteously and fairly and the tenant left with no damage.
Funny thing is, I was renting a neighbour’s house for them when they moved interstate and this same family phoned me three times over the saga asking to look at the house I was trying to rent. Luckily I twigged early enough and was able to deflect them.
Even more odd was that they couldn’t afford the rent at my parents’ house, but the house I was renting for my friends was an extra $40 per week. Some people just keep digging bigger holes for themselves, and cannot be helped.
And for those who think that agents vet tenants more thoroughly than owner/managers, I generally agree because we don’t have access to the data they have access to. However, an agent once found me a tenant who was an ex-hooker who had been in prison, and charged me a week’s rent for doing so.
My thoughts, Wylie.
I would ask the PM to get quotes to fix the slightly fallen in ceiling. Then I would ask them to get the thing fixed at the tenant’s cost.
My thoughts, Wylie.
I wonder if you have any sort of relationship with the neighbours, as in, can you broach the subject without them being hostile.
I would tell them you use the room all the time and look straight at their compressor. I would offer to pay something towards having it moved three metres so you don’t look at it. If they don’t want to pay anything themselves, I’d ask them to get a quote and then make a decision whether to pay for it myself. I’d guess that would cost maybe a couple of hundred tops, but if you can’t stand to look at it, it could be money well spent.
Of course, if there is a bad relationship, they will be gleeful that this is upsetting you, in which case, plant a tree.
I’d approach them to see if they would at least be agreeable to moving it and work out the dollars with them depending on how they respond.
All the best, Wylie.
Hi, I don’t know how you lose the agent but not the tenants. Someone will post the answer though. Perhaps you can approach the tenants privately and let them know you want to manage the place yourself (just in case the agent gets a case of sour grapes and tries to move them on to spite you).
I do know that if you live close, managing it yourself can be easy. We manage our own. You need to spend some time on the RTA website (or whatever it is in your state) and get to know the rules. They have all the forms to be downloaded.
We have had a few problems over the years, but I would hate to pay an agent to do what I can do myself (probably better).
Don’t be put off. Give it a go. If you don’t like it or aren’t comfortable with it, you can always go back to an agent.
Regards, Wylie.
If the agent issued a new lease in the new name but didn’t change the bond, I would think it is up to her to pay you and fix things up her end. I’d lean on her to fix it.
If the lease was never changed to the new tenant, then the original leaseholder would still be responsible for the bond. Again, the agent has made the error, and should be made to pay you and then chase the funds to reimburse the agency.
I am only guessing some things here, but you have paid an agent, who has (it seems) not done the proper paperwork. I would lean on her hard to fix the problem that she caused.
We manage our properties ourselves, and always stress to tenants who may move out that it is important that they get themselves off the lease because while they are on the lease, they can be held responsible for rent and damage. Similar for the bond. Sometimes with singles, it can get messy, but we follow it up to protect ourselves and your agent has been slack.
My thoughts, Wylie.
Just bought a queenslander and have spent the past seven days (ten to twelve hours each day) ripping up carpets, layer upon layer of lino, demolisted the bathroom, painting, painting, painting. Feeling a tad tired but it is wonderful seeing a sow’s ear turn into a silk purse. Very rewarding!
Going to run a bath now and wash the cockie dirt out of my hair. I wonder what the poor people are doing. (In case that is confusing, it refers to comments made to my parents about how “lucky” they are to have investment houses. Beats me where luck comes into it, it is hard work sometimes.)
Now to that bath ……
Wylie.
I’ve got to speak up for the “we hate flyscreens” folk. I grew up with flyscreens in Brisbane and when I married, my husband talked me into living without them. The breeze comes through twice as well without them. We have had NO issues with tenants wanting flyscreens over 25 years in Brisbane. If we need to, we use the little plug in things that don’t smell. Mozzie coils smell foul but the plug ins are great.
We have queenslanders which we rent and have just bought one and ripped all the flyscreens out to let the breezes in. I just cannot believe there is such an issue, but I would not ever flyscreen my own house again. How can you throw open french doors and feel part of the outdoors with flyscreens?
Just my personal view. I’m lonely out here among the flyscreen haters.
Regards, Wylie.
I’d definitely contact the ATO and get a ruling on this. I don’t know the answer, but if you are intending on doing it, you need a ruling in writing, not just someone’s opinion over the phone.
I have rung two different ATO offices, say city and Mt Gravatt, and received differing opinions on some matters, so get it in writing.
Good luck and happy building.
Regards, Wylie
We love old properties because that is what is in the inner Brisbane suburbs we like to invest in. I would also love NOT to have to gap and paint VJ walls but unfortunately that comes with the territory.
Personally, we don’t mind if we have to replumb and rewire because it means everything is new and won’t require maintenance for many years. Usually the plumbing can be easily replaced, whereas in a brick lowset place, it could be very tricky (I think). We can also claim the expenses one way or another.
I wouldn’t touch a knock down house, though, unless I wanted to knock it down. But good, straight, original houses are gems.
On another tack, with the drought in south east Queensland, I’m glad we have queenslanders on stumps because the shrinking of the ground doesn’t seem to cause the same amount of cracking and problems as in slab and brick houses.
We wouldn’t say “never” to a newer house, but we feel very comfortable with tin & timber, albeit the maintenance cost is probably higher.
My thoughts, Wylie.
Hi,
I know I will probably get shot down in flames for saying this, but if the property is in good condition and more importantly, in a good position, I would go for it, assuming you can service the small loss. When I look at a purchase price I multiply the purchase price x interest rate and divide the answer by 52 weeks. In this case $140,000 x 6.5% divided by 52 = $175. If it is fetching $160 per week now, it is nearly there. I know, I know, this is very simplistic, but IF IT IS IN A GOOD POSITION WITH CAPITAL GAIN POTENTIAL that would be close enough for me.
I don’t bother adding all the costs in because I have only once bought a CF+ house. Nearly neutral is good enough for me IF THE POSITION IS GOOD and the growth potential is there and if you can support the loan easily.
I don’t mean to sound laiz ai fair or imply that cash flow isn’t important to us, but the future potential would win with me every time, provided we could service the negative cash flow until rents picked up, or we could improve the rental yield by a lick of paint and polished boards, etc.
I am also not saying to rush into the first house you see, but, personally I’d rather have a slight loss with good potential growth.
Just thought I’d throw my thoughts in.
Regards, Wylie
I have (for twenty years or more) had an unlisted number and am never bothered with these types of calls (except when I have entered a “competition” and then I know I may receive a call). Until recently when my parents unlisted their number they got maybe one or two calls a night sometimes. Drove them crazy.
The problem with unlisted numbers is that with three kids, unless their friends get their number at school, they cannot contact them easily.
If you unlist your number now, the calls will stop once the new book comes out.
I love not getting the calls, but in a way, I’d love one or two to come through so I could try some of the great suggestions on this forum.
Regards, Wylie.
Hi Jenny,
I must differ from some of the other posts. If the place needs painting now, I’d do it while the tenants are in. I’d tell them the painters will need access for two weeks (or whatever) and they will have a freshly painted house. If they are hesitant, offer a rent reduction while the painters are in, but they may not ask for it. If they will be holidays, even better.
If you wait until their lease is over, two things could happen. 1. Painting may cost more because it has deteriorated more and needs more preparation = more money. 2. Painters will still need two weeks and you lose two weeks’ rent before you can even begin showing the place again.
I’d temper that with the comment that this depends on the tenant’s level of care for your property.
I’d do the same for the carpet. If the tenants seem like they would look after the place, I’d go for it.
Don’t forget to update your entry condition report to show the new paint and carpet.
If painting and carpet can wait and especially if leaving the painting will not mean more money to bring it back up to scratch, then possibly wait until the tenants are eight months into their lease and put it to them. It could then be used as a sweetener for them to stay another twelve months in a fresh house at an increased rent.
We added a house width x 5m deep deck to a queenslander while we had tenants. They were fantastic tenants and we reduced the rent ($20 a week I think) while the builder was in. They were happy, builder was happy, tenants got a fantastic outdoor living room. It depends on the tenant of course. Part of the deck was a box bay window which replaced the stove recess, and into which we put a new bench and cooker and downlights and a dishwasher. Tenants were ecstatic, our house value rose at least what we paid plus considerably more.
I don’t look at it as wiping whinging tenants’ noses. I look at it as increasing the value of our property while still getting rent during the paint or construction. When our deck tenants left, we were able to get new tenants quickly at a higher rent, with no downtime for painters or caprenters.
These same tenants asked us if they could put in a window air conditioner and make good when they left. We chose to install a split system in the living rooms (flows into bedrooms as well). Having the deck and air conditioning made renting it soooooo easy next time.
This same house, we plan to turn the front entry (was a verandah, long closed in) into a proper bedroom and move the front door, giving us a four bedroom house. Our tenants have just signed up for a third 12 month lease so we will leave them be for the moment. I would like to do this while they are in situ for the same reasons as we did the deck with tenants in.
My thoughts, Wylie.
Hi, we will be heading to the US early next year and I saw in the Money magazine an add for a no cost Wizard Clear Advantage Mastercard.
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# Up to 55 days interest free.‡I have applied for one. Go to the Wizard website and it will spell everything out (sorry, don’t know how to paste the link here). Apply on the net and get your answer in minutes (although our financial position is a bit more complicated and we have to wait for an answer).
Good luck, Wylie.
