I am looking to buy my first positive geared property in a small rural town servicing a large farming area. Can anyone outline anything in particular I should avoid, or should definitely do etc, to reduce the chances of a having a first up disaster.
get the property assessed for rental by an agent not associated with anyone selling you the property and ask them if they would manage it for you. (if they say no, wouldn’t touch it, we;ve had nothing but trouble, don’t buy the property!)
Try not to buy the worst house in the worst condition in the worst street in the town, right next door to a gang member. Even if a sitting tenant and a 30 percent return seems tempting.
however if you accidentally did, plant poplars along the fence. heehee!!!Don’t buy a dump unless you plan to renovate. Dumps attract the worst tenants. Aim for the top of the bottom, if you get what I mean. I’d say… about a third up, but below the middle.
Country people often have dogs or pets. And might be farmworkers, freezingworkers, plant operators, or similar. Properties that allow pets are hard to find, and once found, tenants tend to settle in, stay a long time. fantastic from a landlord’s point of view. polished floors or lino instead of carpets is great. also, fencing the property to allows dog-owners is a fantastic ‘hedge’ no pun intended, to ensure your property is always tenanted.
PS
get landlord’s insurance if it makes you sleep better at night. i didn’t, but it’s not that expensive.from one who knows…
miniHi,
I rekon buy a house and with most country houses (or a lot of them!) have big blocks lot of area for gardens around and down the sides of houses. Get one without an established garden!
Then get a green thumb in as a tenant and let them cut loose with the gardening. Maybee by the time they leave you’ll have a big good garden.There are other variable that just one i thought i would mention here.
For instance the other day in this town i live in one went for $38 thousand. I been surprized because the whole block has mbeen cleaned up and i can see the portential in the house and particularly making it a good outdoor garden area with the paddock at the back and along the side coming with it. It would rent for $100 a week. A bit of cosmetics needed though and i didn’t see inside.
Here where i live there will be 270 Maluka miners hitting town soon about 27 ks away and they don’t mind commuting out to a small town for good rent and an easy country lifestyle.
I could hardly find a house up for rent in all the RE agents in town.
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Positive Cashflow CalculatorOne of the towns I invest in has 70 people on the waiting list for a rental property, 300 on the books, and only 8 vacant, (which are unrentable dumps.) Town size is 3500, i wouldn’t call it remote, as it is 3 hours drive from a city of 1 million + with major regional towns on the way. Also in very scenic area, tourism etc.
Often towns like this have a much higher rental component than the national average, and are the sorts of places where good CF investments can be found.
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