Recently purchased an IP property, under the advice of Financial Planning firm.Property has been on the market twice now for tenants. How can i turn this around and make it work for me instead of me working twice hard to pay for it.
Hi OBTS,
I always get a bit concerned when I hear “purchased an IP property, under the advice of Financial Planning firm.” There are those firms that do the right thing, and then there are those that don’t !! What have they sold you, where is it, what is expected rent, etc.Please add a bit more detail – see, I can’t work out what you mean when you say “Property has been on the market twice now for tenants.” Does that mean you have had two sets of tenants and neither group has stayed long? Or does it mean something else entirely? Tell us a bit more about the actual problem otherwise we will be struggling to give you any meaningful ideas to turn it around.
Benny
Hi Benny,
Our property is West of Toowoomba,4br House, expected rent $350pw.Building was completed end of Dec.2014.Off the plan. We had tenants for 6mnths, but now vacant. Businesses in the area have laid off quite a few workers. There is quite a few homes up for sale and for rent.Population is around 4000.At the time of purchase CSG project was to be in full swing by mid 2015. This has now stopped. We have since been advised that a Solar Farm is to go ahead 2016- 2017. But not sure what to do in the mean time. Hope this is helpful.OTP + financial planning company don’t mix. There’s only one side making money in this transaction – and it’s not the purchaser.
Reduce rent if you’re struggling to get new tenants. If your property manager isn’t proactive – look at using another.
Are you claiming all depreciation? That might soften the blow a little bit.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie,
I agree with whos making the money, or should i say whos now profited! Unfortunately im a first time invester and had no idea and still confused on the process. Hoping to go alone one day, but still quite nervous as this one has really thrown me.I have thought about reducing the rent but currently have a rental agreement with the firm, so at this point im safe. Its waiting for overdue rent thats putting me backward.Being a smallish town the option of Property Management is limited as i live 900ks away.Most of the other rental properties in area all too have reduced there rent,there are quite a few up for sale or for rent in the area.My problem is should i stay or i go, even at a loss. OR hope things get better.Hate to say wearing my Buyers Agent hat for a second we wouldn’t buy in West Toowoomba at the moment.
We are still buying in the City for forum members but other parts of Toowoomba are proving more attractive and produce solid rental demand.
I know this doesn’t help you but would suggest you focus on the matter in hand.
Look at dropping the rent to meet the market, remember you can always increase it at the end of the lease period.
Have prepared your Depreciation report (if you haven’t already done so) allowing you to lodge your Tax variation.
Finally review your current loans. Saving a few dollars here and there will make a big difference to your cash flow.
With lenders increasing the margin on interest only loans we always recommend a client review their situation every couple of years.
Finally, good luck and sorry it appears you have been sucked in by so called Professionals. I promise we are not all like that.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
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