Ve+ rural properties – a business or passive investing?
How much time do you spend investing in rural properties. Do you have to drive their often to fix the rentals between tenants? Do you do it all over the phone with the agent? Who has been doing this stuff longer than 5 years, ie longer than Steve?
I am busy with a good job and i have a young family (2 kids under 5), so I invest locally.
Just wondering how much effort is involved. At this stage of my life, I want passive investing.
Cheers
Andrew
Hi Yack,
This question is really open, and i feel your gonna get alot of different responses.
How much time do you spend investing in rural properties.
It depends, im like Property Guru [
][][], me and him are always thinking about property.Do you have to drive their often to fix the rentals between tenants?
If anything, i try to do everything, over the fone, email, fax, mail or whatever possbile means and try to avoid having to travel out for any issues.Do you do it all over the phone with the agent?
I prefer to do it all over the phone and let the agent do it all. Though, they must always provided 3 quotes, yet some of the agents, know i have specific people i use for certain trade jobs. Its just that these people i know are reliable and dont do shonky work.Who has been doing this stuff longer than 5 years, ie longer than Steve?
Have not been property investing for 5 years, but have been among and around people in property investing since a kid.cheers,
s.i.sHi Andrew
I also have two small children (under 3), and am currently changing my negatively geared strategy (have been investing in negatively geared props for about 4 years) into a positively geared strategy (imagine if I had done this 4 years ago, where would I be – the lessons we learn!!!).
I spend evenings looking for props on the internet, I make phone calls to agents during the day (while the kida are asleep) and if a property or properties comes up that matches our criteria my husband, kids and I drive/fly to the area to take a look.
With the properties we have at the moment (only 3 so I am by no means am expert) I have agents manage them i.e fix toilets etc I don’t even the properties close to where I live I don’t do the maintenance.
I envisage by putting in the work now I will be able to work less once I have enough properties to reach my financial freedom goals.
If the desire is strong enough anything is possible.
Lucinda
Hi Lucinda
I just recently had a property on the rental market for 6-8 weeks. Yes, its a little out dated and I probably should upgrade the kitchen, paint it, fix some doors, even the garden etc.
This property was only 15 mins drive away. I spent the past 6 weeks wondering what I could do to improve the place. The agent gives a few comments BIG DEAL. I put in some curtains, new light fittings and even started the process of doing a renovation ie. new kitchen.
I got quotes and was about to sign for the new kitchen. Now I have two applications for the property.
I dont know about you, but I cannot imagine doing this if the property is 4 hrs drive or a flight away. I dont do the maintenance either but I am responsible for it. Its no good to me if the place is unoccupied.
I still want to sleep at night.
Cheers
Andrew
Hi Andrew
Apologies for taking so long to reply.
Yes, it is time consuming to source properties, purchase them, have them tenanted and if you choose to renovate you are opening another can of time sucking worms, apologies if I made it sound like it wasn’t. My point was more about building contacts to assist and that you could always make the time if it is something you wish to pursue.
Regards
LucindaP.S you could also look into wrapping (info on this sight) as this takes out the need for renovating or looking for tenants.
Hi Andrew
Apologies for taking so long to reply.
Yes, it is time consuming to source properties, purchase them, have them tenanted and if you choose to renovate you are opening another can of time sucking worms, apologies if I made it sound like it wasn’t. My point was more about building contacts to assist and that you could always make the time if it is something you wish to pursue.
Regards
LucindaP.S you could also look into wrapping (info on this sight) as this takes out the need for renovating or looking for tenants.
Yack,
I bought my first place 9 years ago- set and forget until the property boom. But the rules are the same for me- even if I bought a place next door to where I live, I have a very hands off approach re management.
For example, i lived on the coast- 5 mins from my IP, but never even thought about it- the PM did everything for me. I forgot I even had it!
I have 3 IP’s- one is 1.5 hours away from me, another 6 hours from me, and another is 10 hours from me. I have nothing to do with any of them. The only time it takes me to think about them is when the PM’s send me statements about how much money they’re transferring to my account each month! :o)
It would be the same for me if I had 10 IP’s all over australia- takes no time at all to think about your investments when you have good PM’s. I am a *very* passive investor- almost in a coma really- hehe. I think if I pay PM’s to do a job- then that is what they do- “manage” things for me. I want them to be real managers- to make decisions and to make the day-to-day operations of the investments functional.
I often hear about people seeing PM’s as really only rent collectors. Thw owners may as well keep half the management fees, as they are so close to their investment. I am totally hands off, and let my PM’s know my expectations. Then it’s up to them :o))
To answer your Q- it takes no time at all for me to do anything- just slit open the mail each month.
kay henry
Andrew,
Starting from last year I do researches on particular areas that I am interested in for 1 to 3 months and keep an open eyes on the areas for property availability. Then I will drive, flight there to inspect the property that are available for 3 days and make an offer. Everythings else will do through phone, fax, email, mail…
If I have time available then I do research for the areas within reach i.e. 2 to 4 hours drive and inspect the area eg. Orange from Sydney only 3 to 3.5 hours.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]
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