Hi everyone,
I'm not looking at purchasing the property below, however I was cruising realestate.com and was wondering how you would deal with it if you bought it?
http://www.realestate.com.au/cgi-bi...r=&cc=&c=74102666&s=vic&snf=rbs&tm=1255397895
Based on their stated figure of 18k rent, each unit seems to be paying about $115 in rent per week. This looks to be about 50% below market value judging by the 2 bdrm units available in the "for rent" section for that suburb.
My questions are:
How do you deal with a property that is that far below market rental? I would think that you would be dealing with some long term tenants and a previous owner who never did rental reviews.
Have any of you had to deal with almost doubling the rent of long term residents (possibly pensioners)? How did you handle it?
If you purchase a block of units like that and you want to renovate them to increase the value and rental return, how do you handle that when they are tenanted? Do you kick the existing tenants out, renovate and then bring new tenants in?
Really interested in hearing your responses as I am just getting started in Investment Property and have a lot of questions!
I'm not looking at purchasing the property below, however I was cruising realestate.com and was wondering how you would deal with it if you bought it?
http://www.realestate.com.au/cgi-bi...r=&cc=&c=74102666&s=vic&snf=rbs&tm=1255397895
Based on their stated figure of 18k rent, each unit seems to be paying about $115 in rent per week. This looks to be about 50% below market value judging by the 2 bdrm units available in the "for rent" section for that suburb.
My questions are:
How do you deal with a property that is that far below market rental? I would think that you would be dealing with some long term tenants and a previous owner who never did rental reviews.
Have any of you had to deal with almost doubling the rent of long term residents (possibly pensioners)? How did you handle it?
If you purchase a block of units like that and you want to renovate them to increase the value and rental return, how do you handle that when they are tenanted? Do you kick the existing tenants out, renovate and then bring new tenants in?
Really interested in hearing your responses as I am just getting started in Investment Property and have a lot of questions!