Yeh Rugby, lol, whats with everyone & double replies?! Annoying huh?!
Nathan, I think I see your investment pretty much the way you’re seeing it. Land value is basically what you paid for, so being a corner block is good, and Im assuming you looked into the possibility (hopefully probability) of future growth. Being a -vely geared property Im assuming you want this as well as the tax benefits… Anyway, thats not the point. The point is, that as long as the building is livable, then you should be fine, then like you said, once it appreciates a bit more & building suffers a bit more, you will be able to afford to fix it or start again. Houses from other sites are cheap to buy & reletively cheap to transport, so should turn out ok.
Now if I was in your position, Id be sh!t scared… just coz I think investing with such magnitude at such a young age is daunting (Im about the same age as you), but also excited. One thing I think you want to keep an eye on is your ‘perceived’ savings… You mentioned that you are in a situation where you negotiated $32k off the price… but who said it was going to sell for that higher price. Dont get me wrong, you could be on a winner here, and for your sake I really hope you are, but just be careful with you sums, because it sounds like the contingency with the termites could lead to more trouble in the future, and perhaps high vacancy rates if things turn ugly.
Still, Im sure you know what youre doing (sounds like it anywayz!) and would have factored all of this sort of stuff into your equations and valuations.
Cheers mate, & good luck(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Nathan, Congrats man, if you got city property with a cheap house. Two bonus points
1. Houses only lose value anyway
2. If you got the house cheap, take a punt on higher risk tenants. Bit more cash for you and you help out an ostricised group. (Not head in the sand birds…. poke poke)I used to rent a dump as a tenant when younger, we always paid rent and that prop sky rocketed for its land value.
[specool]
lifexperience
I would suggest you are on the right track. Invest that the termite situation doesnt get anyworse and providing the house is livable then u shouldnt have a problem with tenants.
If later down the track the house needs big money spent on it u could wiegh up your options on wether to demolish and start from scratch, renovate, or just sell at the revalued land price.
If the land size is good enuff u may even consider building a couple of town houses on it.
As far as termites are concerned I live in an area that is real bad im always finding them in my firewood lying around however they have never gotten in the house and having a concrete slab its pretty easy finding signs of termites in the house. Just do regualar inspections around the foundations for trials of mud and dirt.
Regards Bear
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DONT MISS OUT!!!!!Dear All,
I don’t want to create another topic, but want to add my question here if I could.
I just got a pest inspection done on one of my potential purchase for investment. there are live termites activity on the side fence, but there are no activity in the house.
I know you can do a pest control treatment for termites. The questions are:
1. Will it be a permanent (no more termites activity) once the treatment done? or I have to do pest inspection / treatment regularly for this house?
2. Any estimate of how much it cost for 30 metres fences termites treatment?
3. What is the downside / risks if I buy this house? ie. future sale?
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]As mentioned above my area is bad for termites but as long as an eye is kept on the signs things are fine. Not with out risk tho.
If the property is a long way for u 2 check for signs yourslef u may have to invest every 12 months on small inspections i wouldnt rely on the tenants to do this for u.
Regards Bear
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DONT MISS OUT!!!!!Check the zoning you may be able to get a DA for a duplex. If possible its security if the house gets eaten.
Lots of +cf props NSW Country. Hard work is done. Nick 0414 274 495
Originally posted by iko:Check the zoning you may be able to get a DA for a duplex. If possible its security if the house gets eaten.
Lots of +cf props NSW Country. Hard work is done. Nick 0414 274 495
DA?????????
Regards Bear
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DONT MISS OUT!!!!!the pest inspector said probably 10,000 damage + then about $2500 to repar the termitesThose pest inspectors will never be out of work if they keep repairing those termites [jerry]
Sorry couldnt resist, sounds like a good deal if the problem is fixed. But it does sound like youve gotten attatched to this property which could make you blind to the negatives. [sick3]
Dont let the excitment cloud your judgement and if all still looks good , then must a be a good deal.If you want the rainbow youve got to put up with the rain!
Hi,
dont have any knowlege of the house or area. Looks like you have a solid due diligence process in place, which in my view is step 2 (finetuning/ researching the deal).
The easy way (step 1) I would decide on whether I knew it is a GOOD deal is do the following:
1) Have selected this area as best of at least 10 other areas (potential for cg, rental income, etc, what ever your critera are)
2) Select this property as the one with the highest yield/cg out of at least 10 in the same, similar, closest area.
3) determine whether it meets minimum personal requirements (eg. if -cf no more than $100 p/week out of pocket, etc)I think 10 would be the minimum? A good deal is a GOOD deal because it is better than (all) other deals, is it not? Have not bought any IPs yet, so just theory.
Russ, $250K-ish is a low price for Sydney these days, regardless of where the house is located.
Kay – Mt Druitt = The sticks? [lmao] It’s practically inner city from where I sit. (Figuratively speaking).
Just to be on the careful side, I suggest you get a building inspection to determine what work needs doing and how much it will cost. As a landlord you have a responsibility to provide a safe environment for your tenants to live in. If the roof collapses and you knew beforehand that it was infested, you would be in deep strife. Insurance would not cover pre-existing situations like this. If the place became unliveable at some point, your would have to put up your tennant in alternative accomodation etc. at your cost. If however you get an inspection that says it is safe for another 12 months and keep getting one every 12 months, the liability should be shifted to the inspectors PL insuance. So factor these inspections and ongoing treatments into your CF calcs.
Originally posted by Chan$:Dear All,
REPLIES IN BLUE
I don’t want to create another topic, but want to add my question here if I could.
I just got a pest inspection done on one of my potential purchase for investment. there are live termites activity on the side fence, but there are no activity in the house.
I know you can do a pest control treatment for termites. The questions are:
1. Will it be a permanent (no more termites activity) once the treatment done? or I have to do pest inspection / treatment regularly for this house?
There is no such thing as a guarantee in the termite eradication business. They will give you a choice of various treatments which range from around $1000 to over $5000. They will not guarantee that it will get rid of them though. You will have to do follow up inspections every 6 months (they recomment every 3 months in the first twelve months)2. Any estimate of how much it cost for 30 metres fences termites treatment?
No idea here, but assume $1000 for a basic arsenic treatment.3. What is the downside / risks if I buy this house? ie. future sale?
The million dollar question Chan? The risks are fairly obvious but if you get onto it quickly you will probably be OK. I was told by an inspector that if your house (or fence in this case) is only affected a little, there is a house in the street that has almost been destroyed. It was the case with me that one house 4 down had extremely bad infestations and damage.Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]If you want anymore info just PM me.
‘Eat rich food, barbeque a yuppie’ [greedy]
Thanks Rugbyfan & Bear1964 for your help. Currently I still trying to get a quote for pest treatment to no success.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Where’s your IP?
‘Eat rich food, barbeque a yuppie’ [greedy]
Rugbyfan,
It is in SA. I just got a call from the pest guy. He said it will cost $800-$1000 to treat the whole house in and out.
At this stage termites only found along the fence. So he suggest that just spray along the fence which cost only $140-$150 and do another inspection in 12 months time.
So I think it’s all good at this stage.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Is it arsenic dust? It sounds like it for the price.
If so, you will need to warn your tenants about the dangers and make sure their kids get no where near the fence for a while.
‘Eat rich food, barbeque a yuppie’ [greedy]
Thanks heaps guys for all of your posts, i brought this place like 5 weeks ago it settles now on monday.
as an investment in sydney it adds up to be good i could have haggeled other homes in area bit better presentation but in rougher parts for same money maybe…. or prob lil bit dearer.
thanks once again, kay… i mean i want to get another one by september out in the sticks this one is not in the sticks….
H.C yeh sounds like we think the same…. my figures all stack up alright i am not to knowledgeable on termites but they r in the house…. maybe….and i got $17,000 off already negotiated price.
too small at moment for duplax but maybe in like 5 years
also i have a side fence on it 6’foot high i wanna get a bussiness 2 advertise on it and pay rent….how much rent should i charge?? who should i approach, it not bust street at all…. its quiet but yet has lot of people walk/drive past at times… so yeh….
houses under $300K are few and far in between now, and will become scarece as 1st home buyers need something.!
when M7 motorway comes through it will be even better again!regards Nathan
I read in another post that youre a real estate agent too… might be able to get your work to pay you for rental of advertising space on the fence. Just an idea, but otherwise, if I was in your situation (considering I dont really know anyone who could help in that kinda scenario), Id probably go & approach businesses that I would think could benefit from the kinds of people that would see the sign. Kinda like a marketing pitch I know, but hey, if youre an agent, Im sure youre used to it
Congrats by the way!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Nathan, Can R.E. agents work outside of your regular job?
If so you could advertise for yourself.
“neon lights[oneeyed]” NATHANS BACKYARD HOUSE DEALS,[oneeyed] you could sign contract of sales over a bbq and a bit of backyard cricket.lifexperience
Hi Rugbyfan,
You said “No idea here, but assume $1000 for a basic arsenic treatment.”
I was under the impression that arsenic dust can no longer be used in WA – wondering if this is the same in other states.
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
Congrats by the way!
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