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  • Profile photo of jcls79jcls79
    Member
    @jcls79
    Join Date: 2004
    Post Count: 88
    June 9, 2005 - 11:27 am

    Hi all

    recently purchased an IP in QLD and when I was told was that the body corporate will be around 1,200 per year but I’ve just received my quarterly bill for 450 (amounting to 1,800!!) [angry2] and I asked body corporate and they say this is the correct figure but when I instruct my solicitor to do the due diligence, they come back with figures of 1,200 (who should I talk to?!?) Also, my original idea was to rent out each room individually but now the utility company has said that for a 2 person unit, the general electricity and gas bill (without any central heating or cooling system) will amount to 1,500 and on top of 500 water bills, what THE?? If I decide just to rent out the entire unit, I will be negatively geared for 3,000 per year and if i rent out each room individually, now with all this booming figures, I will be out of pocket for 2,500 per year?

    Any suggestions, I would love to sell this place but the market is flat and nobody wants to purchase it (also, just spent quite a bit of money on renovating this place up)

    thanks for your help

    Cheers
    john

    Want to join financial independence before 31 years old, currently 25

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    June 9, 2005 - 11:53 am

    Hi John

    You may be able to turn this property into a positive cashflow situation by on selling it using vendor (seller) financing. A couple of good places to start reading up on these seller financing techniques are:
    1. https://www.propertyinvesting.com/strategies/lease-options.html
    2. https://www.propertyinvesting.com/strategies/wraps.html
    3. http://www.financewraps.asn.au

    I hope this helps.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of LuciLuci
    Member
    @luci
    Join Date: 2005
    Post Count: 114
    June 14, 2005 - 1:07 am

    Does QLD have different tenancy norms from NSW? In NSW the tenants would be paying for electricity and gas, not the landlord. If you are paying these, then you should be folding the costs into their rent.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    June 14, 2005 - 1:26 am

    I think that renting rooms out individually also requires a permit – it does in NSW – or you may be considered to be illegally operating a boarding house or hostel or something else…

    If you think the electricity and water bills are high, wait until you get the compliance costs of operating a boarding house.

    Just rent it normally and don’t worry about the utilities bills. The tenant will pay them under a standard lease.

    The Mortgage Adviser

    http://www.themortgageadviser.com.au
    [email protected]
    Essential Links

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