Hi all,
I stumpled apon this site and was wondering if any one knew of a tenant/investor service where they match tenants to investors for their properties.
I'm a long term renter and my experience with real estate agents for the past 2 years has been terrible. I pay at the high end of the rental scale (600-800pw) and am sick of no repairs being done or realestate agents saying that stuff is quality when it is the bottom of the range. Let me give you an example i have a blanco oven and the realestate agent says it is a quality appliance… I know blanco make quality appliances but the oven is the bottom of the range. Also the range hood fell off and now they want to hold it up by putting more screws into the frame that hold the filter in. I'm just astounded that property investors allow this type of work to be done. I pay my rent early in full every month and expect items to be fixed when they break. Am i expecting too much? I constantly ask realestate agents what the property owners are like and they constantly say they will fix anything at the drop of a hat… It never happens….
I also have had the real estate state that a room is a bedroom when legally it can only be used as a storage room due to low ceiling heights. So if i use the room and i have a fire i am personally liable….
any feedback would be fantastic…
A rent of 600 per week equal an annual rent of $31200.
At a rental yield of 4.5% the value of the house is $639333 on a rent of $600 a year.
If the landlord has recently purchased the house their loan would be $639,333
by the time they paid out stamp duty of $24,000 on top of the purchase price.
and if LVR was 95% on their loan an extra 20,000 loan mortgage insurance.
So at an outlay of $673,000 the landlord is getting $31200 from rent while paying $44,753 per annual in interest at 7%.
Now add on Insurance and rates of approx $2000 per year which brings up the total cost per annual of $46,753
Now take $46753 – $31200 = $15553 per year / 52 = $299 loss a week by your landlord.So what I am trying to highlight is the poor cash flow your landlord could be experiencing if they recently purchased their investment property. This doesn't take into account any further interest rate rise.
We have not calculated any repair costs yet in to the figures above.
So if your landlord took the $673,000 and put it in the high interest savings account currently earning 6% p/a they would earn $776 a week in interest which is a nice cash flow.What is the purchase / value of the houses you are renting compared with the rent charged ?
if your landlord claims negative gearing they will lose at least $150 a week after their tax return deduction is factored in.
You might want to investigate the cost of Vendor finance / Rent to buy as an alternative to renting but I am sure it will be dearer than renting.
see
http://www.housestogo.com.au/
http://easyhouses.com.au/buying.php
http://www.ownyourhome.com.au/
http://www.jvpropertypartners.com.au/ – Actual poster on this forum !
as some examples of rent to buy schemes – not a recommendation of any kind !
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