Dual living in Logan 4114 and Slacks Creek

B

Beanie Girl

Below are properties I consider are decent dual living properties in good locations. I'm disregarding price, rent etc. Just judging by the house and location

349k. Under contract. Potential rent $500
http://www.realestate.com.au/property-house-qld-woodridge-117815819

Offers over 395k. Under contract
http://www.realestate.com.au/property-house-qld-slacks+creek-117357891

349k. rented $435 pw. Service Road.
http://www.realestate.com.au/property-house-qld-woodridge-115416259

320k plus. rented $420. But be mindful there's pool. Pool maintenance monthly
http://www.realestate.com.au/property-house-qld-woodridge-117690331

320k plus. rented $420. Was pool before, covered up. Main road but has speed humps.
http://www.realestate.com.au/property-house-qld-woodridge-117509519
 
Hi,

I read these forums alot and noticed this is your area of expertise and have quite a few investments in this area.
I was just wondering what your experience is like with insurance on these types of properties? And do you self manage or does an agent look after it for you? Cause it looks like there could be issues with two families under the same roof. Or do you stick to extended families on one contract and charge premium rent for the split setup?

Thanks for the post!

Fresh.
 
fresh investor said:
Hi,

I read these forums alot and noticed this is your area of expertise and have quite a few investments in this area.
I was just wondering what your experience is like with insurance on these types of properties? And do you self manage or does an agent look after it for you? Cause it looks like there could be issues with two families under the same roof. Or do you stick to extended families on one contract and charge premium rent for the split setup?

Thanks for the post!

Fresh.
Click to expand...

Hiya Fresh, definitely give to PMs to manage as I am interstate and they can deal with anything promptly, e..g. hot water service carked it, plumbing blocked, meter tripped/no power etc. The PM has an army of tradies/electriicans/plumbers/handymen who give good work at very reasonable rates. The tradies get a constant supply of work and give good rates 'cos there are economies of scale. My PM is detailed, meticulous, thorough and tough, doesn't take what prospective tenants say or write at face value but makes extensive checks on past history, past PMs opinion, employment checks etc

I obtain comprehensive landlord insurance which I ensure also covers 'accidental damage of the home' either by the tenants or their guests.

No issues with having related families and friends under one roof. (there are some rules regarding how many unrelated people are under one roof, the PM will know and exclude non-conforming applications)
When they combine their income, they are better able to afford the rent in a slightly bigger house in a locality they want to live.

It's a win-win situation, we charge a little more than the average rent for the one contract, not exorbitant; the related families get their own space and the extended family gets to stay together which is cheaper than getting 2 separate houses.

It's a two way street - I provide a relatively decent house for tenants to live at a price they are able to afford and in return, they look after the place as their own home (which for all intents and purposes, it is 'their' home).

At the moment,
The maximum number of related adults I have living in 1 house is 4
the minimum is 3, made of a grandmother, her daughter and her grandson who want their own separate space.

Hope this answers your queries comprehensively, Fresh. Cheers! :)
 
Beanie Girl - some great info there. What sort of demographics is it? I heard these tenants tend to be of Islander heritage..
 
MsAli said:
Beanie Girl - some great info there. What sort of demographics is it? I heard these tenants tend to be of Islander heritage..
Click to expand...

Hi Ms Ali, yes, the majority of my tenants are of Islander heritage, some have hopped across the pond. They are easy-going, friendly and family-oriented. One of the families have green fingers and put a lot of lovely potted plants in the front balcony which they pour a lot of attention and care to. It makes the house feel so homely.

I admire gardening skills, I'm hopeless at it! :p
 
Nice. I've always thought they don't keep the house well......having seen them tenant a few properties I've seen in 2770 in Sydney
 
Beanie Girl said:
Hi Ms Ali, yes, the majority of my tenants are of Islander heritage, some have hopped across the pond. They are easy-going, friendly and family-oriented. One of the families have green fingers and put a lot of lovely potted plants in the front balcony which they pour a lot of attention and care to. It makes the house feel so homely.

I admire gardening skills, I'm hopeless at it! :p
Click to expand...

+1 with that

they are generally a bit rough around the edges, but usually a good heart, obviously some of hte youngsters get up to a bit of mischief,

if I had to choose between a tenant in the rough areas of West Syd or Logan, id take logan
 
I managed to pick up one of the dual property setups this year. So far no issues as yet, one thing I can say is it took around 4 weeks to rent was not a big issue as I was able to advertise before settlement. Agent said that not all family's are looking for this sort of property but before you new it we had loads of applications.

Not to sure of the family's nationality but they have installed new blinds at there own expense so I figure they are gonna stay for a while!
 
Woodridge

Have just settled on a property in Woodridge. I took MXia's recommendation for a PM. She is brilliant. Tenants in less than a week after settlement. Rent in the bank already and we haven't even hit the first morgage payment. Our property is a highest similar to some of Beanie Girls links above. We don't have it set up as dual occ as we would need to renovate the downstairs area. It's positive cashflow by 22 cents so far! We're happy with that for the time being. Need to reserve the funds for the next one. Beanie Girl - I read all your posts - love them :D
 
Magnet said:
Have just settled on a property in Woodridge. I took MXia's recommendation for a PM. She is brilliant. Tenants in less than a week after settlement. Rent in the bank already and we haven't even hit the first morgage payment. Our property is a highest similar to some of Beanie Girls links above. We don't have it set up as dual occ as we would need to renovate the downstairs area. It's positive cashflow by 22 cents so far! We're happy with that for the time being. Need to reserve the funds for the next one. Beanie Girl - I read all your posts - love them :D
Click to expand...

Congrats!

Share/Boast your figures!!!!
 
TMNT said:
Congrats!

Share/Boast your figures!!!!
Click to expand...

Ok TMNT here's the run down...
Purchase Price $277,000
Purchase Costs just under $11,000
Rent $350
Yield is around 7.12% after tax
Based on 100% + costs its about $23 a week negative but after taking our modest deposit into consideration its 22c positive ;)
Ticking away quite nicely and waiting for some capital gain over the next few years.:D
 
Hey Magnet, thanks for sharing your figures. When i first started looking into Brisbane and Logan the gross yields looked alright until i started adding the high rates, insurance premiums and pm fees. To be neutral or positively geared (LVR dependant) you need at least 7+% gross yields to be comfortable. All those property adverts stating 6+% yields are likely going to be negatively geared, especially when interest rates rise.

How much do you think it will cost to build in the ground floor of a highset to create an additional 3 rooms, 1 kitchen , 1 bath?
 
Yep Dbz Vic, the costs are high that's for sure. PM around 8%, insurance $1000/yr, can't remember what council rates are off the top of my head but they are very high compared to other states. We need positive geared properties so I don't even consider anything below 6.5 before tax. Not sure how much it would be to renovate the ground level. I will ask our PM as she has co-ordinated renos like this for clients. We will consider renovating to increase yield once we run out of money/equity to buy. Hopefully we can buy again between now and early next year.
 
Magnet said:
Yep Dbz Vic, the costs are high that's for sure. PM around 8%, insurance $1000/yr, can't remember what council rates are off the top of my head but they are very high compared to other states. We need positive geared properties so I don't even consider anything below 6.5 before tax. Not sure how much it would be to renovate the ground level. I will ask our PM as she has co-ordinated renos like this for clients. We will consider renovating to increase yield once we run out of money/equity to buy. Hopefully we can buy again between now and early next year.
Click to expand...

Depends on a few things and how you want to rent it, I have almost finished a self contained "studio" underneath a highset, with no existing plumbing, good to go for under 5k, but did a lot myself and bought everything second hand
 
Dbz_Vic said:
How much do you think it will cost to build in the ground floor of a highset to create an additional 3 rooms, 1 kitchen , 1 bath?
Click to expand...

If you want I can do this for you, I'm a Logan local and know all the right people

For 10k I can supply and install a self contained studio that may be deemed as liveable by some, my new company is called cheap and cheerful Logan renos, my workmanship is however not guaranteed as we like to "surprise" our clients with our own unique style of affordable renovations

Please call you'll be so glad you did
 
mikezen said:
If you want I can do this for you, I'm a Logan local and know all the right people

For 10k I can supply and install a self contained studio that may be deemed as liveable by some, my new company is called cheap and cheerful Logan renos, my workmanship is however not guaranteed as we like to "surprise" our clients with our own unique style of affordable renovations

Please call you'll be so glad you did
Click to expand...

LOL Thanks mikezen, not sure if you are being serious but the properties i purchased are either new or renovated. I have yet to purchase reno uppers. :D
 
Interested read- thanks Beanie-Girl for sharing.

We've just settled on a 3 bedroom high-set house in Waterford West (Logan City Council) with dual occupancy potential. Would need to renovate the downstairs area, but it's all legal height compliant etc. We paid $242,500 with potential rent $480-500pw once renovated.

Can't go wrong with these type of properties in the Brisbane market if you can get them at the right price.

Kind regards, N
 
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