Any advice/tips on how to find a good yield IP in BNE?

[mattyg_10]

I am looking for an IP in Brisbane. I am researching so that I can get one with a very good yield.
Yield is very important to me so that I start earning income (i.e. becomes pos. geared) quicker
Any advice/tips on how to find a good yield IP?

Thanks
Jesse

Hi Jessie,

You can get great yielding properties anywhere if you are prepared to add value. You don't always have to look at the cheapest housing to find the best yields. You may / or may not be into renovating but getting a handy man to give a lick a paint, new carpets, trim the hedges can add significant $ onto the weekly rent and actually return better yields then the cheap housing that may be harder to find good tenants or up the rent by much. Just a thought.

 

[Fudge]

It may well be under the QLD Tenancy Law Amendments-Landlords or agents must now gain consent to photograph their properties with the tenants belongings,the same as rents can only be increased after six months from the last increase,my guess is most agents don't know Qld tenancy laws, you can't even conduct an onsite auction or open house without the tenants consent,as they say the tenant holds the keys in several ways.
willair..

Yeah, this is a tricky one. I dont entirely agree with this. I have come across this one a couple of months ago, as my new build house was getting a 6 month final inspection (after settlement / handover), so a thourough inspection was required by a building inspector to give the final OK. This was carried out while tenants were residing in my property.

For this instance, and any instance where you don't advertise the property in any public assessible media, it should be fine to take pictures of anything inside the house.

The Residential Tennancies & Rooming Accomodation Act 2008 states:

"203 Lessor or lessor’s agent must not use photo or image
showing tenant’spossessions in advertisement

Unless the lessor or lessor’s agent has the tenant’s written
consent, the lessor or agent must not use a photo or other
image of the premises in an advertisement if the photo or
image shows something belonging to the tenant."

So if I was selling it or renting it out, this is where I can't advertise the property with the tenants belongings, as they would be viewed in advertising mediums such as the internet. (So for the point of this post, this is most likely the reason why you don't see any snaps of inside the house.)

For personal situations to provide inspection and building reports, it is well within your rights, even if the tenants belongings are photographed, provided the photos are not used for advertising purposes.

To elaborate on this 'tenant consent' in the above clause, and to make things perfectly clear, in one of my tenancy agreements that a PM did up for me, the special conditions in the tenancy agreement include the following statement:

'Quarterly inspections include photos: I understand that any such pictures can be used for advertising purposes and property inspection reports'

These special conditions in the tenancy agreement gets signed by the tenant, so written consent has been obtained before the tenant moves into the property.

Cheers,

F

 

[Fudge]

I am looking for an IP in Brisbane. I am researching so that I can get one with a very good yield.
Yield is very important to me so that I start earning income (i.e. becomes pos. geared) quicker
Any advice/tips on how to find a good yield IP?

Thanks
Jesse

This is off topic, but can't find previous post where you were converting garage to an extra bedroom and putting up a carport You posted this maybe a couple of months ago. You asked for advice from forumites, but don't know how you got on? Was it successful? Did you increase yield? What outlay did you end up having? Any probs?

Would be interested, and am sure others would be as well to hear end result. (Hence, no private message)

Cheers,

F

 

[willair]

Yeah, this is a tricky one. I dont entirely agree with this. I have come across this one a couple of months ago, as my new build house was getting a 6 month final inspection (after settlement / handover), so a thourough inspection was required by a building inspector to give the final OK. This was carried out while tenants were residing in my property.

For this instance, and any instance where you don't advertise the property in any public assessible media, it should be fine to take pictures of anything inside the house.

The Residential Tennancies & Rooming Accomodation Act 2008 states:

"203 Lessor or lessor’s agent must not use photo or image
showing tenant’spossessions in advertisement

Unless the lessor or lessor’s agent has the tenant’s written
consent, the lessor or agent must not use a photo or other
image of the premises in an advertisement if the photo or
image shows something belonging to the tenant."

So if I was selling it or renting it out, this is where I can't advertise the property with the tenants belongings, as they would be viewed in advertising mediums such as the internet. (So for the point of this post, this is most likely the reason why you don't see any snaps of inside the house.)

For personal situations to provide inspection and building reports, it is well within your rights, even if the tenants belongings are photographed, provided the photos are not used for advertising purposes.

To elaborate on this 'tenant consent' in the above clause, and to make things perfectly clear, in one of my tenancy agreements that a PM did up for me, the special conditions in the tenancy agreement include the following statement:

'Quarterly inspections include photos: I understand that any such pictures can be used for advertising purposes and property inspection reports'

These special conditions in the tenancy agreement gets signed by the tenant, so written consent has been obtained before the tenant moves into the property.

Cheers,

F

http://www.rta.qld.gov.au/entry_to_premises.cfm
The lessor/agent must take reasonable steps to ensure the privacy of tenants. They are allowed to enter the property in accordance with the rules of entry under the Act, but there are steps that must be followed:

• A lessor/agent may not hold an open house to sell or re-let the premises without the written consent of the tenant.
• In most cases, the lessor/agent must give the tenant notice in writing using an entry notice (form 9).
• Entry must happen at a reasonable time. Lessors/agents are unable to conduct an entry on Sundays or Public Holidays, or between 6:00pm and 8:00am on other days, unless both tenant and lessor/agent agree.
• If alone or with a selling agent, the lessor or their agent must specify a two hour time period on the entry notice during which they intend to enter the premises. The lessor/agent must enter the property during that particular two hour period. They can then stay in the property past the end of the two hour period to complete the job. This does not apply to entry by tradespeople.
• The lessor or their renting agent or their selling agent may enter with another person e.g. tradesperson to complete repairs or a police officer if a tenant is damaging the property as long as the correct amount of notice is given. On these occasions, a two hour time period is not required.

If the tenant has concerns about the entry time, it is best they contact the lessor/agent immediately. It may be possible to negotiate another entry time suitable for both parties.

If the lessor/agent has followed the rules set out by the laws, provided the correct notice and entry is proposed at a reasonable time, they can still enter the premises to conduct their lawful business.

Failure to comply with these requirements is an offence and tenants can make a complaint to the RTA if they believe the entry to the premises was unlawful.

A lessors/agent may enter a property at any time with the tenant's permission.

Lawful purpose of entryMinimum noticeIf the tenant verbally agrees that the lessor/agent can enter.No timeframes apply but lessor/agent must enter at the agreed time.To inspect the premises7 days (a maximum of 1 routine inspection every 3 months) except for a short tenancy agreement in moveable dwellings.Follow-up inspection to check a significant breach has been remedied(Significant breach is defined in the Act s 192.2).24 hours (the entry must occur within 14 days of the expiry date on the notice to remedy breach - form 11). To carry out repairs or maintenance to the premises.24 hours (the entry can occur without notice if the premises are located in a remote area and there is a shortage of tradespeople).To carry out maintenance of a site in a caravan/moveable dwelling park.No notice required if the agreement allows for it.Follow-up inspection to check a the quality of repairs and maintenance by a tradesperson.24 hours (the entry must occur within 14 days after the completion of the repairs or maintenance).To comply with the Fire and Rescue Service Act 1990 in relation to smoke alarms.24 hours (the entry can occur without notice if the premises are located in a remote area and there is a shortage of tradespeople).To comply with the Electrical Safety Act 2002 in relation to approved safety switches.24 hours (the entry can occur without notice if the premises are located in a remote area and there is a shortage of tradespeople).To show the premises to a prospective purchaser.24 hours notice and a reasonable time has elapsed since the last entry for this reason. A notice of lessor's intention to sell (form 10) or a notice to leave (form 12) must have been given by the lessor/agent or the tenant must have given a notice of intention to leave (form 13).To show the premises to a prospective buyer or tenant.24 hours notice and a reasonable time has elapsed since the last entry for this reason. Must also have given a notice to leave or have received a notice of intention to leave.To allow a valuation of the premises.24 hours.If the lessor/agent reasonably believes the premises have been abandoned.24 hours.In an emergency.No notice required.If the lessor/agent reasonably believes that entry is needed to protect the premises or inclusions from damage that is about to happen, or further damage.No notice required.By order of the Queensland Civil and Administrative Tribunal (QCAT).As specified in the order.

 

[Fudge]

http://www.rta.qld.gov.au/entry_to_premises.cfm
The lessor/agent must take reasonable steps to ensure the privacy of tenants. They are allowed to enter the property in accordance with the rules of entry under the Act, but there are steps that must be followed:

• A lessor/agent may not hold an open house to sell or re-let the premises without the written consent of the tenant.
• In most cases, the lessor/agent must give the tenant notice in writing using an entry notice (form 9).
• Entry must happen at a reasonable time. Lessors/agents are unable to conduct an entry on Sundays or Public Holidays, or between 6:00pm and 8:00am on other days, unless both tenant and lessor/agent agree.
• If alone or with a selling agent, the lessor or their agent must specify a two hour time period on the entry notice during which they intend to enter the premises. The lessor/agent must enter the property during that particular two hour period. They can then stay in the property past the end of the two hour period to complete the job. This does not apply to entry by tradespeople.
• The lessor or their renting agent or their selling agent may enter with another person e.g. tradesperson to complete repairs or a police officer if a tenant is damaging the property as long as the correct amount of notice is given. On these occasions, a two hour time period is not required.

If the tenant has concerns about the entry time, it is best they contact the lessor/agent immediately. It may be possible to negotiate another entry time suitable for both parties.

If the lessor/agent has followed the rules set out by the laws, provided the correct notice and entry is proposed at a reasonable time, they can still enter the premises to conduct their lawful business.

Failure to comply with these requirements is an offence and tenants can make a complaint to the RTA if they believe the entry to the premises was unlawful.

A lessors/agent may enter a property at any time with the tenant's permission.

Lawful purpose of entryMinimum noticeIf the tenant verbally agrees that the lessor/agent can enter.No timeframes apply but lessor/agent must enter at the agreed time.To inspect the premises7 days (a maximum of 1 routine inspection every 3 months) except for a short tenancy agreement in moveable dwellings.Follow-up inspection to check a significant breach has been remedied(Significant breach is defined in the Act s 192.2).24 hours (the entry must occur within 14 days of the expiry date on the notice to remedy breach - form 11). To carry out repairs or maintenance to the premises.24 hours (the entry can occur without notice if the premises are located in a remote area and there is a shortage of tradespeople).To carry out maintenance of a site in a caravan/moveable dwelling park.No notice required if the agreement allows for it.Follow-up inspection to check a the quality of repairs and maintenance by a tradesperson.24 hours (the entry must occur within 14 days after the completion of the repairs or maintenance).To comply with the Fire and Rescue Service Act 1990 in relation to smoke alarms.24 hours (the entry can occur without notice if the premises are located in a remote area and there is a shortage of tradespeople).To comply with the Electrical Safety Act 2002 in relation to approved safety switches.24 hours (the entry can occur without notice if the premises are located in a remote area and there is a shortage of tradespeople).To show the premises to a prospective purchaser.24 hours notice and a reasonable time has elapsed since the last entry for this reason. A notice of lessor's intention to sell (form 10) or a notice to leave (form 12) must have been given by the lessor/agent or the tenant must have given a notice of intention to leave (form 13).To show the premises to a prospective buyer or tenant.24 hours notice and a reasonable time has elapsed since the last entry for this reason. Must also have given a notice to leave or have received a notice of intention to leave.To allow a valuation of the premises.24 hours.If the lessor/agent reasonably believes the premises have been abandoned.24 hours.In an emergency.No notice required.If the lessor/agent reasonably believes that entry is needed to protect the premises or inclusions from damage that is about to happen, or further damage.No notice required.By order of the Queensland Civil and Administrative Tribunal (QCAT).As specified in the order.

Yeah Willair,

Agree with entry to premises, but I am talking about taking photos?

Cheers,

F

 

[vbplease]

Any other suggested suburbs for good yields?

Here's an example of what Sue was suggesting.. close to Griffith uni, $380k rents for $600. Mind you it's been on the market for ages so there may be something wrong with it?

 

[Rixter]

Here's an example of what Sue was suggesting.. close to Griffith uni, $380k rents for $600. Mind you it's been on the market for ages so there may be something wrong with it?

Its more than a good chance rented on a room by room basis to students. Plus very high body corp fees.

 

[Gatoblanco]

As long as it is not in the low flood area,and up high somewhere then
depending on the the final price it may well be cf-p,there is a lot like this on the market both north-inner southside in Brisbane, do your homework one by one then some you will find are on the market for 200 k LESS the the buyers paided 2 years ago..willair..http://www.realestate.com.au/cgi-bi...er=&cc=&c=9959479&s=qld&snf=rbs&tm=1262388602

That one would cost me $1615 f/n in IO repayments (if sold for$600k). Returns $1020 f/n.
That gap would be too big for me.

I thought this one was a good one and I am not surprised it is under contract I spoke to the agent but I didnt want to start looking hard until I buy a (cheap) car first. This one is close to the train and there were other brand new units near it because of that.

http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=106145319&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=81160190&s=qld&snf=rbs&tm=1263306527

That one would have cost me $1500 f/n if sold for $550k and returned $1220 fn. That is much less of a gap.

I actually went and looked when i was waiting for a train at caboolture station. One thing that I noticed was that the property had a decrepit asbestos panel fence all the way around. Pretty wasted and ugly. What would that have cost to remove?

 

[Gatoblanco]

I also liked this place. I dont know what it rented for though. But I could live in one side and PM the other side. Plant a few trees, do it up a bit.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=85281121&s=qld&snf=rbs&tm=1263307027http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=106190348&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=85281121&s=qld&snf=rbs&tm=1263307027

Rough area though.

 

[Gatoblanco]

http://www.realestate.com.au/cgi-bi...r=&cc=&c=42559245&s=qld&snf=rbs&tm=1262320586
If I had the money right now I would get this one!

I called the agent this one asking $549k rents for $520wk. Not too much chance of putting the rent up she said as the flats are pretty ordinary inside.
The street it is on is right next to the train line. I would prefer one street back.

 

[Fudge]

I thought this one was a good one and I am not surprised it is under contract I spoke to the agent but I didnt want to start looking hard until I buy a (cheap) car first. This one is close to the train and there were other brand new units near it because of that.

http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=106145319&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=81160190&s=qld&snf=rbs&tm=1263306527

That one would have cost me $1500 f/n if sold for $550k and returned $1220 fn. That is much less of a gap.

I actually went and looked when i was waiting for a train at caboolture station. One thing that I noticed was that the property had a decrepit asbestos panel fence all the way around. Pretty wasted and ugly. What would that have cost to remove?

Yeah, I have had my eye on this one for a while.

Looks like it is under offer now.

It has been trying to sell for over a year. Was for sale at $650,000 in Dec 08, but I would have paid around $520,000 for it. (That is what the original owners bought it for back in 04)

It has failed a building inspection on the last unit, due to one of the load bearing walls I have been told. This, doesn't necesarilly put me off the property, but need to factor into purchase price.

The duplex beside it was for sale, and the two together would have been a good buy if you could have bargained the price, as it on Res C zoned land.

Cheers,

F

 

[willair]

That one would cost me $1615 f/n in IO repayments (if sold for$600k). Returns $1020 f/n.
That gap would be too big for me.

I thought this one was a good one and I am not surprised it is under contract I spoke to the agent but I didnt want to start looking hard until I buy a (cheap) car first. This one is close to the train and there were other brand new units near it because of that.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=81160190&s=qld&snf=rbs&tm=1263306527

That one would have cost me $1500 f/n if sold for $550k and returned $1220 fn. That is much less of a gap.

I actually went and looked when i was waiting for a train at caboolture station. One thing that I noticed was that the property had a decrepit asbestos panel fence all the way around. Pretty wasted and ugly. What would that have cost to remove?

Gatoblanco,that looked alright ,i just don't know the area i just stick too the
small inner southside that i know,if that is what is out there with agents,
just think what you may find if you put a small add in sat courier mail paper
for properties that investors that have real selling problems,i have four deals in front of me from the last add i rang in the paper,all with DA BCC approval,plans all in place,out of those 4 there is only one that may work,they want 1.4 mill ono,they paided at auction 817k 17 months ago,they were 4 timber flats,they made several mistakes one was they bought vacant,so the holding costs are sky high,no bank will lend them
the development funds,and they are now stuck with a vacant property
full of rats and vermin from the roof too the old blown wodden stumps
so the holding costs plus for the total approval package are very high,plusore problems the property is in a demo control main street 5 klm from the cbd the only offer they have on paper is for 835k,that comes with a 6 months settlement and with terms i would not sign,i have offered 850k 45 day cashclean contract ,they still won't drop below 1.1 mill,and as unemployment is low,there is a 100% chance now the interest rates will go above what everybody thinks in the first week of next month,just have to wait and see not everybody makes out of property ..imho..willair..

 

[JDM]

I found this house in Wooloowin that sounds like it might fit the criteria you are searching for. It's returning just shy of 8% with a rental return of $880/wk. I'm not too sure if this investment style is your thing but renting on a per room basis is one of the reasons for such a high yield.

Further more there is the value add potential coupled with the current pressed metal cielings and hardwood floors making for a nice property.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=84043386&s=qld&tm=1263432311

Sitting on a 600sqm block, i think it's quite good value considering some other sales in the area. 14 Lydia St sold for $515k on a 430sqm block and a lowset tidy house as a comparrison.

Diclaimer: I am not the agent for this property nor do i stand to gain any financial motivation from the sale of it.

 

[willair]

I found this house in Wooloowin that sounds like it might fit the criteria you are searching for. It's returning just shy of 8% with a rental return of $880/wk. I'm not too sure if this investment style is your thing but renting on a per room basis is one of the reasons for such a high yield.

Further more there is the value add potential coupled with the current pressed metal cielings and hardwood floors making for a nice property.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=84043386&s=qld&tm=1263432311

Sitting on a 600sqm block, i think it's quite good value considering some other sales in the area. 14 Lydia St sold for $545k on a 430sqm block and a lowset tidy house as a comparrison.

Diclaimer: I am not the agent for this property nor do i stand to gain any financial motivation from the sale of it.

Maybe so,but are you a Real Estate agent,if so let everyone know,who to say one your mates has control over the sale of the property,'s well??
willair..

 

[JDM]

Maybe so,but are you a Real Estate agent,if so let everyone know,who to say one your mates has control over the sale of the property,'s well??
willair..

First of all, I've already mentioned i have nothing to do with the property.

It caught my eye as good value and then i saw it related directly to this topic so thought i would share it. I don't understand why people are so quick to jump to conclusions rather than letting the numbers do the talking.

Do you not agree that this property could be good value if it fits within the investors style?

Once again: I don't have anything to do with this property, i don't know the agent, i don't know the owner. I found it on re.com and was trying to help.

 

[cu@thetop]

First of all, I've already mentioned i have nothing to do with the property.

It caught my eye as good value and then i saw it related directly to this topic so thought i would share it. I don't understand why people are so quick to jump to conclusions rather than letting the numbers do the talking.

Do you not agree that this property could be good value if it fits within the investors style?

Once again: I don't have anything to do with this property, i don't know the agent, i don't know the owner. I found it on re.com and was trying to help.

I think we have all dealt with REAs before so we are a cynical mob. No disrespect to you Joel.

This looks like no8 which sold for $810k on 4/9/07 but back then according to RP Data it was 1214m not 599m.

If an entrepeneur has a hand in a deal I generally wont touch it as there is no meat left- it is in their nature. This guy has done a splitter by the looks of it so I'm not really interested.

If you have any splitter blocks available I am sure you can share them on the forum without reprimand.

 

[65fbk]

Will any PM's manage a property that is rented by the room? Sounds too hard for me.

 

[JDM]

Will any PM's manage a property that is rented by the room? Sounds too hard for me.

I'm unaware of any that will and this strategy is deifinitely not for everyone. The yields can be much higher but so will vacancies and the work involved. Definitely not for those seeking passive investment!

 

[PI141]

WOW I use to live in that street - watch out for the tunnel project it either goes right under it or close to it - should not really be a problem but I can see property dropping in that area for the next few years - they build a big stack in Rose park - looks very ugly!

 

[Gatoblanco]

Caboolture triplex seemed like a good property

Yeah, I have had my eye on this one for a while.

Looks like it is under offer now.

It has been trying to sell for over a year. Was for sale at $650,000 in Dec 08, but I would have paid around $520,000 for it. (That is what the original owners bought it for back in 04)

It has failed a building inspection on the last unit, due to one of the load bearing walls I have been told. This, doesn't necesarilly put me off the property, but need to factor into purchase price.

The duplex beside it was for sale, and the two together would have been a good buy if you could have bargained the price, as it on Res C zoned land.

Cheers,

F

It is good to get some validation on the property because it was one I thought was a good investment. I just was not quite ready to do serious inspections of property until I get a car to go and check them out.