Alarm Bells - Please Urgent Help needed

[natmarie73]

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.

What he said.

Warning bells should definately be ringing - the last thing you want is a bad tenant and if 12 PMs aren't prepared to touch it I would hazard a guess it is a pretty high risk. What is it about "the numbers" that makes you consider buying it in the first place? And do those numbers factor in a bad tenant who doesn't pay the rent and won't leave + associated costs with going to court etc etc. Doesn't sound like a good deal to me so far.

 

[melzinoz]

I was recently (6 months ago) looking at purchasing in Coledale but everyone we spoke to advised against it. I cant remember the agent that quoted but I did find a PM that would do it for 15% ... too much!! ... On top of that I imagine insurance is horrendous.

I ended up buying in south Tamworth, so far so good... purchased for $150k and returning $260 p/w ... its an older home and we do plan to tidy it up but nothing urgent or structural !

 

[Bats]

mins

What happened, did you settle or walk away.

 

[Peterw]

There is thread when a lady has bought a boarding house in Tamworth. She may be able to assist you.

Here is the thread:-

http://somersoft.com/forums/showthread.php?t=90893

Hope that helps

 

[bcole2012]

Sorry Mins. I think your only option is to walk away from this. 12 agents not willing to take the property on is a MAJOR black flag. Do not pass go, do not collect any rent...

 

[Elliotte]

I'm the lady mentioned above. I could offer all sorts of help - the issue is the exact part of town and the neighbours. If it is the area I'm thinking then even if miracles could be performed with good tenants, maintenance etc the neighbourhood makes it too hard. I'm on the "good" part of town and had my fair share of issues with folk who travel out of that neighbourhood to cause trouble then go home.

There are some good local FB pages up here that detail the crime in streets and what goes on where..join one of the groups and flat out ask about the street and see what the locals all say. I have heard there are even some streets with wheelie bins across the street that are the checkpoint and no one allowed in - including ambulance etc.

 

[Elliotte]

Article in the local paper today about a new company managing rentals only in town. Styles Property Investments ph 6766 6500.

 

[karina]

I would walk away from it. So many issues to consider. What will happen if you want or need to sell it and no agent in town will manage it? How is that attractive to a prospective investor. Its not the only property in AUS available for sale. Just walk away.

 

[BMW]

I remember talking to an agent when I was looking in Tamworth. She would always shake her head at the out of town investors buying in Coledale, sure you can get 8%+ gross returns, but the property is guaranteed to burn down within 5 years.
stick to South Tamworth, with a bit of work 7%+ returns are achievable without the extra risk and strong rental demand.

 

[Jacaranda]

Alarm bells - the heading says it all.

If it is a verbal agreement I would walk away, as mentioned in other posts, how are you going to get a tenant if no agent will help, insurance will only coer 30 days vacant

Why is the property for sale?
Is the area that bad?

There are plenty other properties for sale, that would be a safer option.

Good luck

 

[fokas]

mins

What happened, did you settle or walk away.

I'm curious too!