conflicting ideas... what do you suggest?

[veebeeseewee]

Hi all,

My cooling off period for my first property will start tomorrow, but I now have a few concerns.. There are fair bit of works needed to be done according to my personal opinion because I'll not rent out my place 'disgracefully'.

One told me that there will be more things to do to this house according to her opinion because she wants to present her house the way she will live in the house, so she can get the quality tenants she's expecting, who will look after the place and pay rent on time. If she doesn't fix up the house, it shows no respect to the house, ie no respect to the tenants, and hence the tenants will not show respect to her house in return.

Another told me," what's the point of fixing all these? The tenants probably will not even appreciate what you've done at all. The sort of tenants you'll get here are all not to the quality standard that you're expecting just because of its location, no matter how well you present your house. You'll still get the same good rent here, what's point of spending the time and $$ into this house?"

This property I'm getting is located in Smithfield Plains. I know the population there are more towards the low social groups, but does it mean I'll definitely not getting good quality tenants?

Will you fix up your place, eg the broken doors, broken taps, repaint the house, fix the dirty toilet, fix the broken shower screen, relayer the flooring, broken tiles on the wall, remove the massive load of green junk at the backward etc?

I'm looking forward to fix up the place, but my friend said it will take longer than I expect to fix up this place before I can rent it out to the standard I would like it to be especially because I haven't done any handy work before. Her advice is, withdraw from the contract and then keep looking for something else that doesn't require any work from the start.

What will you do?


*Frustrated*

 

[luckyone]

Seeing as the area from what you say seems to be a lower socio-economic area I would only fix up the things that really need to be fixed. For example I would fix the broken doors and taps (how are they broken though) and fix the dirty toilet (it's not hard to clean). Not sure about fixing the shower screen as it would depend how badly damaged it was and if it were likely to cause injury to the tenant.

Why do you think you need to relayer the floor, is it damaged? Uneven? If it's ok, but just a bit shoddy looking a good clean might spruce it up.

I wouldn't fix the broken tiles on the wall.

I would remove the green junk as that can be very unappealing to prospective tenants.

I'm not too handy either, but if the work was pretty minor and I thought it was within my limited capabilities then I would probably go for it.

What price you paid and how much rent you'll achieve would have a big bearing on my thoughts though. Have you had a rental valuation done by a property manager (not the selling agent)? I would get a couple to go through during the cooling off period and gather their thoughts on what you should and shouldn't do. Then you can evaluate if it's worthwhile.

 

[Sez]

Hi all,

My cooling off period for my first property will start tomorrow, but I now have a few concerns.. There are fair bit of works needed to be done according to my personal opinion because I'll not rent out my place 'disgracefully'.

One told me that there will be more things to do to this house according to her opinion because she wants to present her house the way she will live in the house, so she can get the quality tenants she's expecting, who will look after the place and pay rent on time. If she doesn't fix up the house, it shows no respect to the house, ie no respect to the tenants, and hence the tenants will not show respect to her house in return.

Another told me," what's the point of fixing all these? The tenants probably will not even appreciate what you've done at all. The sort of tenants you'll get here are all not to the quality standard that you're expecting just because of its location, no matter how well you present your house. You'll still get the same good rent here, what's point of spending the time and $$ into this house?"

This property I'm getting is located in Smithfield Plains. I know the population there are more towards the low social groups, but does it mean I'll definitely not getting good quality tenants?

Will you fix up your place, eg the broken doors, broken taps, repaint the house, fix the dirty toilet, fix the broken shower screen, relayer the flooring, broken tiles on the wall, remove the massive load of green junk at the backward etc?

I'm looking forward to fix up the place, but my friend said it will take longer than I expect to fix up this place before I can rent it out to the standard I would like it to be especially because I haven't done any handy work before. Her advice is, withdraw from the contract and then keep looking for something else that doesn't require any work from the start.

What will you do?


*Frustrated*

Tricky! But what ever you do don't sink too much money into the property. I absolutely think that you need to get the property up to a good standard for renting as, yes, if you present the place well then your tenants are more inclined to treat the place well.

Look at it all and see what is really required at this time. So, yes, you really should be replacing the broken doors and taps! Do the walls actually need a re-paint at this stage or do they just need a good clean? same with the toilet. can you simply replace the toilet seat with a new one and give the existing bowl a good scrub and have it come up good as new? How bad is the flooring? Can you just replace the few broken tiles on the walls without replacing all of them? Yes, green waste should go! If the shower screen is dangerous then yes, replace this too as it may only get worse for you.

There are cheaper ways to make a property present well without replacing everything. First a good clean!!! Perhaps some new light fittings if the ones you have a outdated (nothing to pricy), Even things like new door knobs on kitchen and bathroom cupboards or new towel rails. far cheaper than repainting & replacing everything!

Just because it isn't the area attracts some "lower social groups" doesn't mean you will get bad tenants but you do need to do a very good job of checking out your potential tenants.

Do the minimal to have it looking nice and cared for and if the tenants that are in there prove themselves to be excellent, don't be afraid to do a few little improvements while they are in there when you have the rental income coming in.

My question with regards to getting out of the contract and finding something which doesn't require any work is - does your budget extend to that kind of property? You say it is your first property (and Congrats), but everyone has to start somewhere. yes it will be a learning curve and yes it may take you longer to do the work this time as it is the first time you have tried. Having said that, no matter what home you first buy you will see things you want to change and improve. Just know where to draw the line, don't go over board and learn from this property so you will be better prepared for the next!

Just my thoughts on the matter - either way - best of luck!

 

[veebeeseewee]

Why do you think you need to relayer the floor, is it damaged? Uneven? If it's ok, but just a bit shoddy looking a good clean might spruce it up.

I wouldn't fix the broken tiles on the wall.

I would remove the green junk as that can be very unappealing to prospective tenants.

I'm not too handy either, but if the work was pretty minor and I thought it was within my limited capabilities then I would probably go for it.

What price you paid and how much rent you'll achieve would have a big bearing on my thoughts though. Have you had a rental valuation done by a property manager (not the selling agent)? I would get a couple to go through during the cooling off period and gather their thoughts on what you should and shouldn't do. Then you can evaluate if it's worthwhile.

Thank you for your advice, lucky. greatly appreciated.

Attached are the pics of the toilet and broken tiles. I'm considering changing the toilet otherwise just the toilet seat because it's broken (not shown on the pic), the tile you can see it on the side of the bathroom, very unappealing for myself.

I'm paying $185,000 for this house and expected rental yield is $230-260pw. I consider this is a good buy especially for someone handy.

Which couple? Do they have to be from that area? All our friends don't live down that end of town...

My question with regards to getting out of the contract and finding something which doesn't require any work is - does your budget extend to that kind of property? You say it is your first property (and Congrats), but everyone has to start somewhere. yes it will be a learning curve and yes it may take you longer to do the work this time as it is the first time you have tried. Having said that, no matter what home you first buy you will see things you want to change and improve. Just know where to draw the line, don't go over board and learn from this property so you will be better prepared for the next!

Thanks for your advice and deeply appreciated again, Sez! I was trying to work out how much it's going to cost to improve this property but not willing to spend too much especially if the job requires electrician, plumbers and builders... The only thing to find out is where exactly I must draw the line...

I'm thinking to repaint the place-esp the bedrooms, kitchen's cabinets and possibly all the doors because they are dirty and colour of the bedroom isn't consistent as the rest of the house. Maybe like you guys said, it just requires good scrub and the job can end there!

 

[RumpledElf]

Smithfield Plains ... wow ... you're brave. Last time I went there was to get something off eBay and I don't think I ever want to go back. Is it a semi or a freestanding house?

Just fix the stuff that is broken to the lowest possible standard to make it safe, secure and compliant with current building standards. Granite benchtops and nice carpet isn't going to do anything.

 

[veebeeseewee]

Why do you think you need to relayer the floor, is it damaged? Uneven? If it's ok, but just a bit shoddy looking a good clean might spruce it up.

The floor is just dirty and unattractive, as seen in the attached pic. Even with some cut out end...

 

[RumpledElf]

You posted when I was replying - as to that toilet, stick a bottle of CLR down it and wait overnight.

It'll stink to high heaven but it'll release the calcified poop. Never ceases to amaze me when people don't clean their toilet for a few years straight to get that effect.

And they are missing tiles not broken tiles - you've got quite the job ahead of you retiling that bathroom (or you could replace the missing ones with white and paint the rest)

Edit: the floor. FIX THAT. Its not optional. Unsealed floor in the laundry = not to code. Add that to a professional tenant and you're asking for a HIA order. DO NOT LEAVE WET AREAS UNSEALED. If there's no laundry trough in that room, you NEED one.

If there's anything HIA order worthy in that house, in that area, you NEED to fix it BEFORE you get it rented out. NEED. Not optional. HIA orders are almost impossible to remove once you've got one on. Take this on board before your cooling off period ends.

 

[Sez]

Thank you for your advice, lucky. greatly appreciated.

Attached are the pics of the toilet and broken tiles. I'm considering changing the toilet otherwise just the toilet seat because it's broken (not shown on the pic), the tile you can see it on the side of the bathroom, very unappealing for myself.

I'm paying $185,000 for this house and expected rental yield is $230-260pw. I consider this is a good buy especially for someone handy.

Which couple? Do they have to be from that area? All our friends don't live down that end of town...



Thanks for your advice and deeply appreciated again, Sez! I was trying to work out how much it's going to cost to improve this property but not willing to spend too much especially if the job requires electrician, plumbers and builders... The only thing to find out is where exactly I must draw the line...

I'm thinking to repaint the place-esp the bedrooms, kitchen's cabinets and possibly all the doors because they are dirty and colour of the bedroom isn't consistent as the rest of the house. Maybe like you guys said, it just requires good scrub and the job can end there!

Well, from what you said I was expecting far worse photos! Scrub the toilet and put on a new toilet seat, replace those tiles that are missing and I can't see the issue with the shower screen.....??

If you don't want to do too much but want to spruce it up a good clean of the walls (they don't need to all be the same colour) and even just some cheap new lino in wet areas would make all the difference by the looks of things here! Spending is minimal, rental return is still good and you can look at repainting etc. once your first tenant decides to vacate the property and you have some more funds and experience behind you!

I think I can speak for everyone now when I say we would love to see the after photos as well as the before's you've posted above!

 

[RumpledElf]

Can't let this go, sorry. Mainly because I wouldn't touch that house with a bargepole, but that's just me.

You aren't guaranteed a bad tenant in that area but the odds are extremely good that you'll get one. In the condition that house is in, you're asking for a professional tenant who'll nip in and get an order on and happily pay their $100 a week to live there.

because I haven't done any handy work before. Her advice is, withdraw from the contract and then keep looking for something else that doesn't require any work from the start.

What will you do?

Bottom line, unless you are willing to address every issue that would possibly cause a HIA order on it, before you rent the house out, withdraw from the contract. If you were handy, this was your 10th IP and you were very familiar with the substandard order process (and they are complete nitpicking *******s who will get you for the smallest thing), then go for it. But your first? And it crossed your mind to rent it out as is?

Search this forum for the other recent threads about substandard orders. Most of them are on houses in that area.

 

[luckyone]

I think I can speak for everyone now when I say we would love to see the after photos as well as the before's you've posted above!

Yes, please post them up if you go ahead with the work.

 

[RumpledElf]

Easy to find that listing on re.com.au Love the way the photos are all really wide angle and miss all the issues you've got photos of.

The thing I'd be most concerned about over and above everything else is the front verandah enclosure. Again, thinking from a HIA order perspective, if you get a professional tenant in and an order goes on, if that verandah enclosure hasn't been done 100% professionally (right down to council approvals - you've checked that it's legal, right?) you're screwed as it has been done well enough to be hard to undo. Look up the required ratios of window to floor area for ventilation in that lounge, check the verandah floor has been replaced with a proper floor slab not just the original verandah floor covered with vinyl. If its not a proper floor slab there'll be damp in it, and having a HIA house with no dampcourse myself the one thing standing between me and a HIA order free house is just that my walls are about 100 years too old to have been built with dampcourse, so I'm stuck with that order for the life of the house.

I'd get a building inspector in to check that verandah enclosure. You've signed subject to building inspection, right?

Sometimes I hate being in SA. HIA orders are the tenant's biggest weapon to get really cheap rent from an unsuspecting landlord.

 

[Sez]

Easy to find that listing on re.com.au Love the way the photos are all really wide angle and miss all the issues you've got photos of.

The thing I'd be most concerned about over and above everything else is the front verandah enclosure. Again, thinking from a HIA order perspective, if you get a professional tenant in and an order goes on, if that verandah enclosure hasn't been done 100% professionally (right down to council approvals - you've checked that it's legal, right?) you're screwed as it has been done well enough to be hard to undo. Look up the required ratios of window to floor area for ventilation in that lounge, check the verandah floor has been replaced with a proper floor slab not just the original verandah floor covered with vinyl. If its not a proper floor slab there'll be damp in it, and having a HIA house with no dampcourse myself the one thing standing between me and a HIA order free house is just that my walls are about 100 years too old to have been built with dampcourse, so I'm stuck with that order for the life of the house.

I'd get a building inspector in to check that verandah enclosure. You've signed subject to building inspection, right?

Sometimes I hate being in SA. HIA orders are the tenant's biggest weapon to get really cheap rent from an unsuspecting landlord.

Sound advise! We don't have HIA orders here in VIC so I'm not experienced in the area - good thing to consider!

 

[Corey Batt]

You're extremely optimistic in getting $260 a week in Smithfield plains for a house in such a condition. I would be thinking $240 WITH repairs.

NEWLY built houses in the area:

http://www.realestate.com.au/property-house-sa-smithfield-405213128 $260/week

http://www.realestate.com.au/property-house-sa-smithfield-405210003 $250/week

http://www.realestate.com.au/property-house-sa-smithfield-405156837 $260/week

Nicer area 2 mins away:

http://www.realestate.com.au/property-house-sa-elizabeth+downs-404873987 $210 very good condition

http://www.realestate.com.au/property-house-sa-elizabeth+north-405215388 $230/week

New kitchen etc.

You get the idea.

New houses, Double garage etc. Doesn't compare at all to a most likely ex-com house with broken doors, tiles missing etc.

I have the pleasure in being around such 'grungy lower-socio' types at my work place, and even they shy their noses away from such places (Or their girlfriends for that matter!).

Tile repairs, taps, doors minimum. Give the place a cheap (less than $1000) spruce up and be EXTREMELY careful with tenant selection. You'd be surprised about how many drug raids I hear of a week PER street.

You don't want floors ripped up, smashed in doors, carbon filter mounts in your ceiling etc.

SP is around 10m from my place, I know my shiz.

 

[veebeeseewee]

Smithfield Plains ... wow ... you're brave. Last time I went there was to get something off eBay and I don't think I ever want to go back. Is it a semi or a freestanding house?

Just fix the stuff that is broken to the lowest possible standard to make it safe, secure and compliant with current building standards. Granite benchtops and nice carpet isn't going to do anything.

It's a freestanding house, Elf. That's part of the reason why I've got it for because of its potential to subdivide in future according to the agent. Plus its location is right around the corner where all the happening of the city of playford is building up at the moment, so he said it's going to value!

You posted when I was replying - as to that toilet, stick a bottle of CLR down it and wait overnight.

It'll stink to high heaven but it'll release the calcified poop. Never ceases to amaze me when people don't clean their toilet for a few years straight to get that effect.

Should I drain the water in the toilet totally so it's soaked in pure clr?

And they are missing tiles not broken tiles - you've got quite the job ahead of you retiling that bathroom (or you could replace the missing ones with white and paint the rest)

can I paint on top of the rest of the tiles? Isnt it weird? (Sorry for my lack of knowledge in this area)

Edit: the floor. FIX THAT. Its not optional. Unsealed floor in the laundry = not to code. Add that to a professional tenant and you're asking for a HIA order. DO NOT LEAVE WET AREAS UNSEALED. If there's no laundry trough in that room, you NEED one.

If there's anything HIA order worthy in that house, in that area, you NEED to fix it BEFORE you get it rented out. NEED. Not optional. HIA orders are almost impossible to remove once you've got one on. Take this on board before your cooling off period ends.

I'd get a building inspector in to check that verandah enclosure. You've signed subject to building inspection, right?

Sometimes I hate being in SA. HIA orders are the tenant's biggest weapon to get really cheap rent from an unsuspecting landlord.

The flooring is actually glued to the floor (I reckon) so can I just seal that bit with additional flooring? Should I get someone expert in flooring to look at it? I had the building and termite/pest inspection done and the results were average but not bad and the building inspector actually told me it's a good buy and it's an honest house, no major structural issue (never know if he works for the agent or not even though he's recommended by my broker too).

Well, from what you said I was expecting far worse photos! Scrub the toilet and put on a new toilet seat, replace those tiles that are missing and I can't see the issue with the shower screen.....??

If you don't want to do too much but want to spruce it up a good clean of the walls (they don't need to all be the same colour) and even just some cheap new lino in wet areas would make all the difference by the looks of things here! Spending is minimal, rental return is still good and you can look at repainting etc. once your first tenant decides to vacate the property and you have some more funds and experience behind you!

I think I can speak for everyone now when I say we would love to see the after photos as well as the before's you've posted above!

The shower screens were both broken and I knew I can replace that under the building insurance so hopefully the vendors can do that under theirs.
only the second bedroom is painted in blue (it's the child's room), the rest of the house is white or creamy white.

sure thing to show off if I eventually get to do it, Sez!

Can't let this go, sorry. Mainly because I wouldn't touch that house with a bargepole, but that's just me.

keep it going, Elf! the more comments the better for me


attached are the house, the green rubbish I said and the kitchen to improve.

 

[veebeeseewee]

Thanks CJ! I'm thinking of $245 rent after repairs.

This house comes with roller garage, bigger internal areas than some of the new ones.

You're extremely optimistic in getting $260 a week in Smithfield plains for a house in such a condition. I would be thinking $240 WITH repairs.

NEWLY built houses in the area:

http://www.realestate.com.au/property-house-sa-smithfield-405213128 $260/week

http://www.realestate.com.au/property-house-sa-smithfield-405210003 $250/week

http://www.realestate.com.au/property-house-sa-smithfield-405156837 $260/week

Nicer area 2 mins away:

http://www.realestate.com.au/property-house-sa-elizabeth+downs-404873987 $210 very good condition

http://www.realestate.com.au/property-house-sa-elizabeth+north-405215388 $230/week

New kitchen etc.

You get the idea.

New houses, Double garage etc. Doesn't compare at all to a most likely ex-com house with broken doors, tiles missing etc.

I have the pleasure in being around such 'grungy lower-socio' types at my work place, and even they shy their noses away from such places (Or their girlfriends for that matter!).

Tile repairs, taps, doors minimum. Give the place a cheap (less than $1000) spruce up and be EXTREMELY careful with tenant selection. You'd be surprised about how many drug raids I hear of a week PER street.

You don't want floors ripped up, smashed in doors, carbon filter mounts in your ceiling etc.

SP is around 10m from my place, I know my shiz.

sorry for my ignorance, may I know what is SP?

I'm thinking of this one:
http://www.realestate.com.au/property-house-sa-elizabeth+north-107321374
another suburb (I still expect the same pool of people but hopefully attract a bigger crowd to choose my tenant) but rental income ~$200. Ready to go, except no carport, no air conditioning, no fan, a duplex. Would anyone agree that this is a better buy?

 

[Corey Batt]

SP = Smithfield Plains.

You're kinda on the right track there. I would look at trying to snatch up two duplexes for 300k. Not advertised much on re.com, its mainly old couples cashing in. The local messenger and paper come up, always pays to ask around. Also would hit up the local Re agents and tell them your interest if you were to go down this path, that way they can sell two props for a quick buck. That way you have MASSIVE development potential, with essentially a circa 1800sqm block.

Edit: Also, IMHO staying away from SP, Davo, Munno para etc and towards Elizabeth would be a better long term option. It is where ALL of the main infrastructure is, everyone from those areas head to Elizabeth, its called 'the City centre' by the locals. Keeping near the hub should mean some good appreciation over time. Furthermore, the locals in this area are a lot better, large amounts of retired pensioners, old families etc. Doesn't have the perception of being drug and crime infested.

 

[locko24]

Hi Theo,
Don't know much about the area you are buying in, but imo, you should do all you can on the cheap/quickly, and get it re-valued. Probably gain some decent equity (if you bought well) so you can do it all again!

 

[RumpledElf]

Should I drain the water in the toilet totally so it's soaked in pure clr?

Drain? Hah! Best you can get is scooping some out with a cup or something

can I paint on top of the rest of the tiles? Isnt it weird? (Sorry for my lack of knowledge in this area)

Search this forum for White Knight Tile Paint. Needs prep, but can be done.

The flooring is actually glued to the floor (I reckon) so can I just seal that bit with additional flooring? Should I get someone expert in flooring to look at it? I had the building and termite/pest inspection done and the results were average but not bad and the building inspector actually told me it's a good buy and it's an honest house, no major structural issue (never know if he works for the agent or not even though he's recommended by my broker too).

Its just linoleum tiles, very common in houses that era. We had it here too. Sometimes has asbestos in the adhesive. Best to rip up and redo. The concrete showing through is the 'unsealed' part, we got pinged for that on our house too.

Did you tell the inspector you were planning to rent it out? Structural defects aren't the same as what a HIA guy will ping you for. We got pinged for such exciting thing as no latch on the toilet door, as well as the obvious major stuff. And our house also came up as no major structural issues in an inspection despite having things like no kitchen and the scariest wiring I've ever seen in my life.

The shower screens were both broken and I knew I can replace that under the building insurance so hopefully the vendors can do that under theirs.

Good luck getting the current owners to claim for that - it takes months sometimes to process a claim and they'll have to pay an excess.

 

[veebeeseewee]

SP = Smithfield Plains.

You're kinda on the right track there. I would look at trying to snatch up two duplexes for 300k. Not advertised much on re.com, its mainly old couples cashing in. The local messenger and paper come up, always pays to ask around. Also would hit up the local Re agents and tell them your interest if you were to go down this path, that way they can sell two props for a quick buck. That way you have MASSIVE development potential, with essentially a circa 1800sqm block.

Edit: Also, IMHO staying away from SP, Davo, Munno para etc and towards Elizabeth would be a better long term option. It is where ALL of the main infrastructure is, everyone from those areas head to Elizabeth, its called 'the City centre' by the locals. Keeping near the hub should mean some good appreciation over time. Furthermore, the locals in this area are a lot better, large amounts of retired pensioners, old families etc. Doesn't have the perception of being drug and crime infested.

I dont quite get you, CJ, but from what you're saying that I can understand, it's gonna involve fair bit of money. Are you talking about subdivision?

Thank you for pointing the city centre out, CJ. I do agree that Elizabeth is closer to everything else compared to other further suburbs. However I'm sure there're good areas in not so good suburbs too, so say SP, there might be some streets that ppl would love to live in too! (I might be a bit too optimistic!!)

Hi Theo,
Don't know much about the area you are buying in, but imo, you should do all you can on the cheap/quickly, and get it re-valued. Probably gain some decent equity (if you bought well) so you can do it all again!

Thanks, locko. Every now and then I'll get some positive feedback - now I've got two days to DECIDE to DO IT OR NOT!

Drain? Hah! Best you can get is scooping some out with a cup or something


Search this forum for White Knight Tile Paint. Needs prep, but can be done.


Its just linoleum tiles, very common in houses that era. We had it here too. Sometimes has asbestos in the adhesive. Best to rip up and redo. The concrete showing through is the 'unsealed' part, we got pinged for that on our house too.

Did you tell the inspector you were planning to rent it out? Structural defects aren't the same as what a HIA guy will ping you for. We got pinged for such exciting thing as no latch on the toilet door, as well as the obvious major stuff. And our house also came up as no major structural issues in an inspection despite having things like no kitchen and the scariest wiring I've ever seen in my life.


Good luck getting the current owners to claim for that - it takes months sometimes to process a claim and they'll have to pay an excess.

I've told the agent that I might want to withdraw from the contract and he suggested more negotiations may be done, so I provided him the list to do and out of 13 requests, only 2 got rejected (eventhough I forgot about the toilet!):

1. Install a safety switch - OK

2. Fix the missing tiles in the bathroom -OK (I dont hav to do the job now)

3. Replace the flooring in the laundry/toilet rooms - NO

4. Replace the broken shower screens (if vendors can replace under their insurance) - NO (You're spot on that it's going to take time and a lot of works to get them replaced!)

5. Professional clean the carpets -OK

6. Fix the broken doors -OK

7. Fix the broken taps -OK

8. Clean the exhaust fans -OK

9. Remove all the rubbish behind the garage -OK

10. Replace the smoke alarm -OK

11. Clean the cabinets (including the interior) - OK

12. Clean the windows -OK

13. Clean the walls, garage, etc. -OK

One vendor said yes, the other hasnt got back yet. But the agent said even if the other is not happy with these arragements, the first vendor will pay for all the costs. So now the negotiations make it look a bit more attractive to me, saving me to do all these works. Other works I might have to do myself will be covering the unsealed part in the laundry room with extra linoleum tiles like you said (By the way, it does have a trough in the other end of the room.), replacing the cabinet knobs, and get electrician to check through the house.

Yes, I did tell the building inspector that it's going to be a rental place (and he said 'good on ya' not really sure what he meant but he said he would get his son to buy this house)

 

[Corey Batt]

Doesn't matter if you find a 'nice' (lol) street in SP, the fact is that people won't bother looking in certain suburbs, lowering your tenant candidate pool to people of even less discriminating tastes, which in turn makes one ask questions.

What I'm suggesting as a development opportunity is that buying two ex-housing comm attached houses together is generally cheaper (I've seen buy one for 165k, or two for 150k deals). With blocks around 800-900sqm, you then have the bowl over potential of 1600-1800sqm.

In essence:

300-350k on getting such a deal, hold on for 4-5 years. Lots of development in the area provides you with nice appreciation. As you're one of the last on the block with ex-comm style, bowl over the two properties, subdivide to fit four properties on 400-450sqm, sell one/two/keep all depending on your circumstances. 8 town houses, a dozen units, what ever, there are so many options.

This process allows for dramatic increases in your portfolio growth, whilst keeping your borrowing relatively low.

Whether or not this situation is good for the current housing market is another question, but if the market continues south for a while I will be tempted to buy up half a dozen properties at the right time.