Alarm Bells - Please Urgent Help needed

M

mins

I have a contract to sign and bank cheques ready. Loan is formally approved and building and pest inspection came back good.

I have rang every agent in town - Approx 12 of them. None of them want to take on a rental in the area I am buying this house.

I would like to pose the question: All I have to do is sign and send the paperwork and I own the house but I could be in a position to not have an agent to manage the property and the property is about 5 hours from where I live.

Would you still go ahead because the numbers add up very well. BUT it is no good if I can't get an agent to manage it. Would you cut the losses and pull out?
 
West Tamworth. I know the area is not good. Did my research and willing to take the risk. Just didn't think that no agent would touch it. If it was 1 or 2 agents in town I would have called first but with over 12 agents in town I figured I wouldn't have a problem.

I could self manage but I don't really have the time to do so if something goes wrong.
 
Nope, even the agent that is selling the property won't take it on.

I am tempted to threaten to pull out if they don't take it on but I also don't want to start off on a bad footing with the property managers.
 
well, if you can get out of the contract, that is an option,

if you pull out of the contract, they will lose their comissions,

but on the other hand, what sort of a job will they do if they are forced to take on a property they dont want, the PM may do a good job, or they may just put no effort in

Ps sorry to hijack, but in terms of rank of bad areas, where do fellow SSers put ashmont/tolland vs West Tamworth vs West kempsey???
 
mins said:
Nope, even the agent that is selling the property won't take it on.

I am tempted to threaten to pull out if they don't take it on but I also don't want to start off on a bad footing with the property managers.
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Even if the agent took it on they wont manage it effectively as they don't want it.

Many years ago I did something similar, I sold the property 6 months later. However, in hindsight I should not have purchased it even though I made a profit it was just a dud area IMO.

There were no PMs in the area whatsoever, so I befriended a local tradesperson and paid them to manage the property. It worked well, but when the tenant kept getting their clothes stolen from the clothes line, I thought it was time to sell.

My recommendation is get out of the deal if you can, alternatively try a local, do you have any contacts??
 
You cant force the agent to take it on as PM. As soon as the PM contract ends they will hand it back to you.

If it is such a bad area that 12 agents will not manage it then I think you need to seriously consider if this is an area you want to buy into.
 
Jamie M said:
lol - my first thought too.

I think most agents are still keen to take on IPs in Ashmont....I could be wrong but I had two PM's keen to manage one of mine last year.

Cheers

Jamie
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I have Ashmont but not tolland, I use 2-3 PMs, and one of the better ones has stopped taking any from Ashmont including mine which I wasnt too happy about

Not too sure if the ones I use would take on Tolland, but they seem pretty relaxed in general there ie its a simple, yes or no to Ashmont/Tolland
 
mins said:
Would you still go ahead because the numbers add up very well. BUT it is no good if I can't get an agent to manage it. Would you cut the losses and pull out?
Click to expand...

I have managed an older house in Melbourne from Perth for 6 years. No issues except once with a renting agent. I have paid agents to find tenants each time and there has been no problem until a year or two ago when I had to drop the rent about $30 a week to get a tenant.

The issues I had with the agent was when they couldn't find a tenant. You have not seen a more useless agent. Agent turns up with the keys. Can't get in. Calls the local locksmith to come out and break into the property. Locksmith tells them to try every key again while locksmith is on the phone... sure enough the right key was on the keyring. I found this out from the locksmith. Apparently said agent has form. How awesome is that locksmith though?

Anyway, I have had no problems managing tenants once they have been found but be aware you may have to lower your rent expectations to find a tenant.
 
I have never heard of this? An area so bad a property manager doesn't want to deal with it. Crickey! :confused:

shutupandtakemymoney_zps3bbbd52e.jpeg
 
mins said:
Is there anyone else out there that could help with their opinion on what they would do in this situation.

Thanks :)
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Hi Mins,
I personally would walk away,what is the point as a investment when you cannot find a pm to manage it and even though you are willing to take on risk I feel its a huge risk. So what happens no pm,no tenant then malicious damage,you need to make a business decision and say to yourself can I make money from this buy,will it have long term growth etc etc ,only you can decide on this.
 
How are you going to show prospective tenants through, do you know who to contact for repairs - if the agents are feeling like this will electricians or plumbers go to that area too. No pizza deliveries by Dominos

Go to northerndailyleader.com.au and search coledale

Will your insurer cover the property if it is vacant?
 
mins said:
Is there anyone else out there that could help with their opinion on what they would do in this situation.

Thanks :)
Click to expand...

I've got quite a high risk profile, but would never touch this.
The potential reward vs risk does not seem right.
Where are you looking to gain with this deal?
 
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