Forum Replies Created
I can understand agents dropping landlords. I know my property manager has told me how they really only want landlords who are prepared to offer reasonable properties.
If the property deteriates they will not manage it anymore. I would do the same if I was a property manager. Why manage something that creates more trouble than what you are getting paid for.
As for some property managers not being too keen to source tenants then to loose the listing to the landlord. I would be finding tenants and pointing them to the properties managed by the firm.
This may have worked in the past when there was a shortage of properties but now that there are rental properties everywhere – what would you do if you were the property manager?
Inner City apartments seem to sell quickly because they are marketed well.
As for surburban, new properties people probably want a new PPOR. Some people are prepared to pay more for a new property. Its a bit like a car. No maintenace hassles and you got your weekends to yourself and any repairs covered under warranty. But in my view you are paying extra for that.
My brother is a carpenter and works for several builders. He tells me people are still paying good prices for new townhouses etc.
Me – I would rather buy a property that is a few years old, like buying a car 2-3 yrs old v a new one.
I am not sure I agree with that. Prices by developers always charge market if not more so they build in their profit.
It may have been true over the past few years as you buy now off the plan and if completed in 12 months you may have some gain. But developers always include that gain in the price anyway.
Now that we are at a stage where something bought now may in fact be worth less in 12 months upon completion.
Just be careful.
I tend to believe that investors who manage their own properties tend to get bad tenants.
Unless the person is very experienced in property managers and knows how to check a tenents past history and has access to the different rental databases.
Bad tenants probably do not go to agencies as they know they will get caught out. So they surf the papers for private landlords.
It seems to me MOST (not all) bad tenant stories on ACA and today tonight are from private landlords.
I personally like having a property manager, they do regular inspections and I got someone to blame if things go bad. But you need to manage them. They work for you so you got to hassle them and make sure they do regular inspections etc.
I know where your coming from.
I too hate repairs. But they are a necessary impact of investing. I think of repairs in this way;
1. Have to be done.
2. Get half back on tax so it really costs only half.
3. makes the property better – hopefully less mntnce in the future.
4. Think of the bigger picture – capital gains in 3-5 yrs time.
5. Alternative investments are not as worthwhile in the long run.
6. The longer your an investor the more positive cash flow become the properties.I will start with Vic: Surburbs of Melb. Well for me anyway.
Management Fee 5 to 7% + GST. In my case its 5% as I have multiple properties.
Poperty Condition Report – Included
Quarterly Inspection – Included
Bond Inspection – Included
Letting Fee 1 wks rent + GST
Postage & Petties – $3 Statement Fee
Annual Rental Statement – Includedmy sister used ashphalt instead of concrete.
I like The Block (go Matt and Jane – the others are just too Sydney) and the Apprentice.
I am also into CSI and Law and Order on Sunday night. NCSI is not too bad either. Who has got 2 hrs concentration for a Sunday night Thats a good move by Channel 10.
I tend to agree with Diclem.
After all a blocked toilet is a serious problem and I suppose a sunday does incurr penalty rates.
I would only be pissed if the property manager did not call me first.
A few weeks ago it cost me $65 to turn a heater on. I did try myself but had no luck, nor did the tenant.
I believe an expense like this is just the nature of property investing.
I am pro – frankston. I do own a few properties there and my family live in the area. I live closer to the city.
Do a search on Frankston and you will find a few other threads with my comments.
Why I like Frankston.
1. On the beach – under used asset.
2. Marina looks like going ahead.
3. Bulk stores being built eg. white goods stores. You used to have to go to Dandenong for fridges etc.
4. Gateway to peninsula
5. Heaps better than Dandenong
6. Grollo and the guy who own Chadstone are pumping big money into cbd eg. shopping centres
7. The 2030 strategy is allowing high rise in cbd. ie CAD – central activites district.
8. Freeway as you say.
9. Its like a city on its ownThe best area to buy is sth frankston.
Interesting Article – it sees Australia being overvalued by 29%.
Ah well – just be cautious, buy what you can afford to hold long term.
I prefer capital gains to ve+ cash flow rural/regional town properties.
Is the effort (finding tenants, attending to repairs, paying bills, liasing with repairmen, property managers, driving to place) really worth an extra $200 a month.
I purchased my last property two years ago and it was ve-. I decided to sell it and cash in the profit and and put the proceeds against the PPOR. Now my portfolio is neutrel (spelling???).
Why did I sell. I sold because I decided the market has peaked and I could not justify to myself all the extra interest payments I was making.
I am happy with ve- properties in surburban areas. However now I reckon the property cycle is on the way down a little and am consolidating. I am hoping as interest rates rise yields too will get better.
I prefer capital gains and invest in quality surburban properties near the station and beach in middle ring Melbourne surburbs.
All else is too hard for me. Now with a young family that needs to be educated, I cannot go as Gung Ho as I could have 5 years ago.
Maybe when I am near giving up my curent job I will look at ve+ properties in regionla areas. But not now.
If you provide reasonable properties at market or slightly below market value and attend to repairs in a timely manner then you dont need to provide these extra benefits.
A good tenant will recognise this and pay rent on time.
Short Answer – No. I am an investor not a gambler.
Whats $1500 when your spending $100k or more. Better off investing $1500 in viewing area and property than loosing say $10k. Also dont forget the time in the market you may also loose if you make the wrong purchase.
I agree with you both.
Sonja – I believe things will slow and there will be better buys in the future.
But I also understand where you are coming from Kaye. These are different times. But I would like to see some income increases to support current property prices. Sure that may mean interest rate rises but I would rather have some inflation than deflation. I go no idea where things are headed – so I am being conservative and not overextending myself.
I agree with Del.
Houses dont sell because vendors expect too much?
I dont see a problem. You could get the new PM to handle the paperwork with the old PM, so effectively the new PM is working for you as soon as you agree to their terms. They can serve 30 day term.
In some areas swapping PM’s is common so they may even ignore the 30 days notice.
Oh Well. Good to see some reality about rural properties hitting the airwaves. I would love to hear from someone who has owned rural properties for over 5 years.
Has it been worth the hassles? How much postive cashflow from a rural property do you need to justify the time you need to put in? Thats the magic question?
Yes I read this article and the other ones surrounding it.
It only confirms that prices are overstated and cannot be sustained at this level. The other articles are now saying there is a great divide in wealth in Australia between those that own and do not own property. ie. those that own and those that rent.
The big question to me is – will govt intervene?
Go read firstly any of the books by Jan Somers.
She is from Brisbane so alot of her stuff is based on her experiences in Brisbane.
I credit her with my success and I have never paid for a seminar.
