Recent content by morg

As mentioned above, the standard REIWA management contract allows the agreement to continue until either party gives 28 days written notice. I'm surprised that they haven't followed it up, as they tend to put some value on having their owners bound to them for the long term.

A lot of good points above, particularly subsidising holding costs. Don't forget that whatever you claim as depreciation, comes off your cost base as well. This will come into play when working out your capital gain. So while you're increasing your cash flow now, you will pay for it later...

Very true, Scott. However, in WA, when the "standard" management agreement goes beyond it's nominal expiry date, it lapses to a periodic agreement, much like a tenancy agreement. This allows the landlord and REA to either sign up to another fixed term or continue with existing terms until...

Yep. Every 6 months here. I've found it near impossible to maintain rents at near market rate for long term tenancies, so increases are a little and as often as I'm permitted. The only way to increase rents back up to true market rates, are with new tenancies, as large increases tend to upset...

In short, it ain't gonna happen. You're lucky there is still a lawn. From experience, watering the garden isn't a priority for tenants, either.

I've found the flexability of it to be the major benefit. No need to draw down the entire credit limit. Allocated sub accounts for each individual property. When the time comes, open another sub account, and draw down funds as required. Of course, you do pay a premium interest rate for the...

Thanks Jon. Good idea, keeping some on variable. STG is LOC, so IO for life of loan. ANZ I've still got 9 years IO, as it was only redone last year.

With the latest round of fixed rate cuts, I've once again been tempted to lock in for 3 years. Currently have variable loans with STG for $750k and ANZ for $650k. Both IO. Reasonably happy with them, but always could be better. As it stands, I'm getting a good discount off the variable rate...

I'm guessing you are referring to the cash you give to the agency when your offer is accepted ? If so, there is no rule of thumb. With my last purchase I put down $1k on a 700k house. It's just done to show you are genuine and do have something to lose if the deal falls over.

I'm a PAYG employee, so people owing money and such isn't an everyday occurrence. When it does happen, I'm not obliged to tip toe around the RTA. Having the tennants at arms length takes out some of the emotion and allows the PM to get on with whatever remedial action is required. We all...

That's what puts me off self managing. When things go bad. This is when the good PMs earn their keep. I'm not good with people, so find it difficult being diplomatic with tennants when they owe me money or have damaged my property. Quote: Originally Posted by chilliblue I prefer to...

I have a hard enough time managing the "Managers", let a lone the tenants. Nil for me.

/\ /\ /\ What he said. This should only apply when new tennants move in, if at all. I know, WA PMs love their letting fees. Personally, I only go fixed term leases. Same reasons as above ie. insurance concerns and that teeny bit of control over when the lease expires. My approach, as...

I see your point, Lil, but where does it stop ? In WA we are required to have 2 x RCD's installed also. In the not too distant future, I can see landlords paying for annual testing of these aswell. So now, $80 a pop turns into $240 per property. All for pushing a total of 3 test...

+1 I used to have a couple of properties with them. Never again. They set a new benchmark in appalling service and incompetence.