Hello,
Will rent ever catch up to house prices in the near future for some decent returns? Is there a rule that the rent will have to follow house price increases, i have 1 IP and i keep saying to put the rent up because it is worth so much and returns so low, but the real estate says that i cant over price my IP.North of BNE city are there any decent % returns to be found?
you can do what you like. i have had agents tell me the same thing and i insist they put it up in small amounts regulary or if change of tenant $10 – $15 depending on what i think i can get. check out what else is available and at what price . you would think agents would like to put rent up as their commision goes up.
Median weekly rents for a three bedroom house in Rothwell (approx 25kms north of Brisbane) last year $260 this year $300
Subscribers of some forms of residential real estate information might recognise Rothwell as being at the top a recent list of best areas for rental returns in Brisbane.
I just got a rental appraisal for a 5 bed 3 bath house in Kippa-ring (next to Rothwell) of $450/wk
Just put my Goodna IP rent up $20 per week to $240. which is a 5.3% return. My Redbank Plains IP is returning 5.2%. Both properties were purchased in April this year.
Martin
I have to say no….the Brisbane "mini boom " as I like to call it, has been going for about 3 months and appears to be going higher and higher…so I guess negative gearing must be your friend if you want to invest here….OR, creative rental streams appear to be the only way to go positively geared….
you do realise this is your property/business… not the agents….an IP we bought 3 years ago got an appraisal of $320pw rent from the local agent…. we felt it was possible to get a better figure & listed it at $360pw …. first people to see it on the internet took it straight away at asking figure… it's now at $400pw after a couple of rises… i stated i would do lawns etc as part of the agreement from day 1….I got to know the tenants as they would give me a beer if it was a hot day, after the first year we went private with the tenants direct as they were unhapy with their service (as were we)… thereby saving $25-30pw also… (bit like a rent increase reall,y without the rent increase). the agents gave us very little & that's exactly what we gave them back… the property has not been empty for 1 day since buying & have had some good capital growth with another growth spurt seemingly just started…. you reap what you sow… we bought a house with a warm homely feel… a little nicer than some rentals around (lucky maybe… maybe not)… & most importantly… looked after the tenants…not the agents!!!
I agree with Mackar,…
If you only have 1 or 2 IPs then managing them yourself can be a could way to improve cashflow, when a tenant moves out you can hire a RE to find a new tenant, the biggest factors to watch out for when self managing are,
– you have to maintain a level head and play by the rules,…. alot of people tend to get emotional about their ip and stress about tenant issues so you have to be able to stay rational in all conditions,…. but at the end of the day for most of the year the property managers do nothing.
– keep up with market rent,… it is very easy to when managing yourself to not raise the rent often enough so your rental yeild ends up slipping year by year,
The MD that I work for says that in business you need to know 1) your costs & 2) what the market will accept for your product/service. If you are certain that the tenant/market will accept the price that you want, go for it. If not, do some more research so that you can form an educated opinion that you can discuss with your agent. My own experience has been that agents tend to be conservative so that they don't have a vacancy to deal with & so that they don't have to deal with the landlord of a vacant property.
where can i go for resources on renting myself and getting rid of the RealEstate Agent.
Can i start up a hostel without any form of a license?
I know of this guy who do it. and i think it was all under the table, he was getting good returns for that."Why pay taxes, the governments wastes the money anyway." Packer
vyaw2003 wrote:where can i go for resources on renting myself and getting rid of the RealEstate Agent.Can i start up a hostel without any form of a license?
I know of this guy who do it. and i think it was all under the table, he was getting good returns for that."Why pay taxes, the governments wastes the money anyway." Packer
depends whart state you are in,….. Queensland is the RTA (residensial tenancy authority) there web site has a copy of all the basic forms you will need, and lots of other info
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