First time posting in forum please bear with me.
I have an IP (3×1) in popular school enrollment zones gave rental yield of 5.7% (not looking good, i know) since i purchased in year 2012 here in Perth. Unfortunately it has been vacated for 6 weeks by now and i have spent 8k in renovated the bathroom and laundry trying to push it a little bit, also trying to reduce my capital gain tax in the future. On top of that i have reduced the weekly rental by $80, but still no one came for viewing for last home open according to my property manager.
What will you do? Sell it? not much i will gain from it consider current market in Perth. Further reduce the rent? Kill the property manager?
Thanks.
Hi @brockman
Firstly check the PM is doing a decent job. Are they advertising opens at sensible times when most people can attend? Are the photos showing what the property has to offer? Have a friend contact the PM as a prospective tenant and see how the contact is handled. For example, did the receptionist take a message that nobody responded to ? Or did the PM come on the phone but fail to offer a sensible viewing timeslot?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks Jacqui.
I would like to find out how to turn negatively geared into positively geared property?I would like to find out how to turn negatively geared into positively geared property?
You’d need to increase income from the property and/or reduce costs.
Negative gearing isn’t an issue providing the property is growing in value at a higher rate than the cost of holding it.
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]
Unfortunately, rental vacancies are at an all-time high now in Perth, about three times that of the long-term average. This is pushing the median rent price down, as tenants have a lot to choose from. It’s definitely a market-wide problem, so not necessarily your property managers fault.
Market pressures will make it tough to increase rent, so you’ve done the right thing by trying to add value to attract tenants while also dropping the rental price. See who your competition is and look for other low-cost, creative ways to attract tenants – add A/C, a week or two free rent, etc.
If you decide to sell, you may want to act fast as other investors will likewise be weighing up how to solve the same problem. It’s already a buyer’s market, but if supply increases, prices could drop further.
Jason Staggers | JasonStaggers.com
http://jasonstaggers.com
Email Me
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