We are currently looking into ex-housing commission properties. in the area we are researching, the government no longer want to maintain low income houses. They are selling them through a local estate agent.
Does anyone know how to directly contact, and negotiate, with government housing departments — in order to purchase these properties prior to being handed over to a real estate agency?
Has anyone else purchased ex-housing commission houses — any advice?
Jay cee
hi jay cee
housing is a state govnt function. i can only share what i know from my experience in Vict. SA and Tas.
in victoria the min of housing is auctioning their properties through agents. They will not accept offers before the auction and i doubt it is possible to deal direct with them because of their stance on auctions.
in tas i havn’t purchased for a while so i may be out of date but they were selling through Roberts Real Estate across Tas and selling to a price not auctions (beware of some Housing areas in Tas)
In SA the process is auction. Elders has the contract (about 1 year to go) to auction all properties outside Adelaide. Dennis Brewer is your man if this is the market you are in. Can’t remember the agent that is selling in Adelaide can look it up if you want. the Housing trust will not deal direct with people, i wanted to buy a whole street (10 houses) and still couldn’t get anywhere with them.
Hope this helps, if you want any other info i may be able to help such as contacts in housing dept in Vic. i know most areas of Vic, Tas, SA if you want advice about specific areas and don’t want to post here email me direct [email protected] or phone 0415438666
regards westanThanks Weston,
We are looking at the NSW area, any information there?
The Government are getting rid of a couple of houses every 3 months in this area.
The Real Estate agent which is auctioning these houses warned us that they are still within the housing commission area and therefore may only attract a certain criteria of renters.
We are thinking of wrapping these properties so I dont think this is a big concern.What do you think[?]
Jay Cee
If the property is looking well maintained, drive thru at about 5-6pm, on a pay day – that will tell u if there are any wild parties happening – talk to neighbours about whether this is a regular thing.
You might be lucky – we purchased a brick home, previously all homes in the street were housing commission, but now about half are privatley owned. we had it for 3 years, paid 65k sold for 105k. Only untenanted for about 3 weeks over that time. Never had any problem with tenants.
If you have a nice home, and get a good agent who will look after your interests, then the area shouldn’t be a worry.
Good luck.Just talked to the agent regarding the two properties.
They are to be Auctioned. The Government sure have a hold over the situation. 28 day settlement, 10% deposit at the fall of the hammer. Will not compromise[
]The properties are not within the 11 second ie around $110K and woulde only rent for around $150.
Good Reno properties though.Is it a waste of time/money paying for a property inspection before auction if you do not know what they could sell for?
Move on to the next one[?]
Only those who risk going too far, can possibly find out how far one can go.
GIDDAY,
I have commission homes in melbourne. they have been exellent investments because of the purchase price.I have had no trouble with renting them and thanks to a good agent they have been trouble free. However, make sure do your sums, cause the bargains in this type of ip are harder to come by than a couple of years ago.
If it doesn’ give you the return you are after then it is no better than any other investment ip.
Joff.Jay Cee
i agree with “investor” good deals with these properties are hard to find. On those figures 110k for 150 per week i wouldn’t be interested. Your property would end up taking money from your pocket each week and not adding to it. Unless there were some opportunities to add to the rental return (ie paint /carpet/carport and add 20-30pw) or some unique local situation that would really help the areas growth i would keep looking. I would like to buy for 75k for a 150pw return, i just settled on two like this in Horsham Vic, but it is harder to find currently.
regards westanHi Westan,
Horsham eh,I just returned from a study tour/holiday through the western districts.Had a look at the property in Portland you mentioned Westan, thanks anyway, but it didn,t quite fit my stategies.We also purchased in Horsham and consider ourselves lucky to have found the property that we did.
For anybody who is interested in getting out there into the rural areas for investing,be very careful.
While it seemed to me that the whole south western districts are going through an upsurge in activity particulary towns like Portland,Horsham,Stawell and Ararat, there has been a fair bit of investment money flowing in buying up cheap properties. This has obviously driven prices upward.In one major town we visited, one agent did not have one house for sale
There are bargains to be found and returns can be quite good and like the major cities, regional centres have their prefered areas of town that you need to be aware of.
JoffTo all,
Although these proprties are only rentable for $150 per week, we have put the idea of Vendor financing/ Wrapping to the people in the area.
The phone has not stopped ringing.[
]We are in the process of doing due dilligence on all of the returned Rent Applications we have received.
Our dilemma is that we can only do about three of these deals before we max out.
We recently went to the Property Masters and understand about duplicating through a trust structure but our capital will be used up really early in our journey
Any Ideas[?]
This is our first step onto the investing field so we are excited and sh*@ scared all at the same time.
Any advice appreciated
ThanksJay Cee
Jay Cee
What about borrowing the deposits you need from family/friends and offering them a good interest rate (15%?). You should still be able to make a good profit.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw,
Thanks for the input.
We have put the “idea” out there for family members and work assosciates.
We have been through some money making ideas before and they are waiting to see if this one comes through to fruition.
[?]Do we prove ourselves with these three deals?
The proof is in the puddingRegards
Jay Cee
Jay Cee,
There are loads of people out there with money to invest and no time to do anything about it. Once you have proved to yourself that you can vendor finance successfully then why not advertise for investment partners. Just like family and friends, these ‘silent’ partners can provide much needed assistance and can benefit nicely themselves. Of course you need to ensure everything is professional and legally bound.
Just an idea,
Justin x
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