Hi Investors
I am a newbie and a learner in this big world of investors, I have been watching forums on PropertyInvesting site as part of my research and I must compliment to Steve McKnight and to all of you for leaving such a wealth of information on these forums for people like myself who doesn’t have a clue about investing.
As a part of learning I am trying to find asnwers to couple of my following questions. I would really appreciate if I can get some help with these.
Q1. Once the property is found how do you determine what Rent should be charged in order to keep it Positive Cash Flow and to stay competitve with the market going rate?
Q2. During my research and readings I have discovered that it is widely suggested for first time investors to start small and in regional areas in order to find Positive Cash Flow properties. So I have followed the advise and hit regional but to my amasement what I see is the weatherboard houses from the era when Asbestos was commonly used, weatherboard doesn’t bother me but Asbestos does. Can I please get some suggestions and ideas, I feel I am looking in the wrong areas perhaps, how do I get past the issue of Asbestos?
I would like to thank in advance to investors who have taken time to reply to my post.
Good Luck and Happy Investing to you all
RG
Hi RG
Q.1 iff you want a 10% return say you buy a house for $200,000 the rent needs to be $400 a week.if house is $100 K then the rent needs to be $200 per week. Double it .
Q.2 If you are looking in areas where all the houses have asbestos then when the time comes to sell the purchasers will expect it so it’s not really an issue.
Asbestos is fine if you leave it alone.
Having said that I wouldn’t but a house with an asbestos roof.If you plan on removing the asbestos then (in QLD , not sure of other states but I would hope they all had similar legislation)
you need a liscensed asbestos removal co who wear all the gear and have the plastic lined bins etc.This may be expensive in a regional area.
Alternatively you can do an asbestos removal course yourself in a few days-Check with master builders- and gain your own liscenceHaving said that , the above is only my opinion, from what I have learn’t hands on.I am not a builder.
Cheers
LeahHi RG
I will leave the cf+ advice to the experts as I cannot help in that department yet, but I may with the asbestos.
Regardless of whether a home is regional or metropolitan, if a home is over 20 years old chances are any eave sheets, fibro lining (internal or external), cement sheet weatherboards/roofs/downpipes and more will contain asbestos in one of it many manufactured forms. But to keep a potentially long topic shorter, well maintained non-friable asbestos is perfectly safe. If it needs work done on it get a builder to come and check it out and advise you. Licenced contractors are required for more than 16mt sq in Vic while in NSW you can remove up to 200mt sq yourself before legally needing a licenced contractor. Not sure in other states as we only build in those two states. However if you don’t have trade experience, I wouldn’t encourage you to touch it at all, purely for your own safety. If it is in good condition then leave it and give it a coat of paint. Many of the people who are sick with asbestos cancer were involved with friable asbestos. Usually the asbestos in cladding is classed as non-friable. Although ripping it off a wall in a frenzy may reverse that comment. There is a specific way to remove asbestos with specific clothing as well and only certain tips can accept it.
Doing a course over a few days is only one component to getting an asbestos removal licence of which there a two grades. After completing a course with the training provider you have to apply to the licencing body with not only a pass in the course, but also a history detailing your asbestos removal experience (where, when and with who). So I would recommend just to leave it to the experts. We are also currently looking at purchasing a home clad in asbestos cement sheet for renovation in regional Vic and have no intention of removing the asbestos. Do your due diligence and go for it if the numbers stack up, you can find out whether that type of cladding has hurt sales of houses nearby if you plan to resell or ask the agent if it may hinder tenants if you will rent it. I am sure that it isn’t the only house in the area with asbestos cladding.Good Luck
Julie Fisher
Daryl Fisher Homes.The fox says – read the guru’s book of riddles No1 and all will be revealed – asbestos is only a problem in certain forms
Originally posted by leahwat:Hi RG
Q.1 iff you want a 10% return say you buy a house for $200,000 the rent needs to be $400 a week.if house is $100 K then the rent needs to be $200 per week. Double it .
Would $400 a week for a $200k house be considered too expensive for a tenant? I mean I know it’s all dependent on the place but realistically $400 a week for a $200k house wouldn’t appeal to tenants would it? (I know the above quote was just an example)
Hi Investors
Thanks to Leah for posting replies to my questions.
Although I am still trying to understand the answer to my first question of ” How to Determine the Rent on a property to keep it positive cash flow” . I find charging $400 for a $200k property does not seem bit unrealistic to me.I would like to thank Julie Fisher for her valuable information about my second question on Asbestos. I would be further much obliged if someone can post perhaps some more info about Asbestos such as web site links, etc.
Happy Investing to you all
Regards
RGHi
In terms of determining the rent for ur property dont let the agent tell u what to charge! I have a unit and it is in a great location in Bris, near train line etc and the agent told me that I wouldnt get anymore than $210 for the unit. I did my own advertising and I am getting $26 per week. The advertisement only cost me $30 to run for one saturday and I got 8 callls. I recommend to do ur own research into what is being charged in the area.
Ps the rent that I am charging is above market value, but if the tenants were smart they would have looked around first [exhappy]Good luck! mcubedHi
In terms of determining the rent for ur property dont let the agent tell u what to charge! I have a unit and it is in a great location in Bris, near train line etc and the agent told me that I wouldnt get anymore than $210 for the unit. I did my own advertising and I am getting $26 per week. The advertisement only cost me $30 to run for one saturday and I got 8 callls. I recommend to do ur own research into what is being charged in the area.
Ps the rent that I am charging is above market value, but if the tenants were smart they would have looked around first [exhappy]Good luck! mcubed
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