Elizabeth Downs -Hot lead for low cost Mortgagee Sale

[Corey Batt]

CJay how do you think the holden closure will affect rental and vals in lizbef and surrounds?

I don't think there will be a material difference in values or rentals.

I have a number of current and ex-holden staff on the books, none of which have a residential address in Elizabeth. There are one or two smattered between Hillbank and the like however.

The wages achieved by Holden workers have enabled them to purchase in much higher median areas, so I don't think we will see a direct correlation in the area. Perception may cause a slight blip, but I am doubtful of this.

Much like Mitsubishi down south, Bridgestone and the likes, the workforce is actively progressed into different areas by government departments and other workforce bodies.

Edinburgh and surrounds has absorbed talent from Holdens for a number of years now and will no doubt continue to do so.

If I remember correctly in 2003 there was circa 5.5k workers in the Elizabeth plant, now less than 1,100. During that same 10 year period prices have gone quite strong.

The optimist in me hopes that instead of tossing billions into Holdens, that the State and Federal governments will assist these workers to transition into workplaces which can provide a strong stable future for themselves and their families.

 

[bez23]

well said Cjay. Thinking the same as well. Dont think anyone on decent wages would rent houses in Elizabeth.

Only problem that I see is this will discourage people from investing/ buying in elizabeth and hence capital growth might be slower than before the announcement (by about 1-2 years).

 

[Waldo]

Only problem that I see is this will discourage people from investing/ buying in elizabeth and hence capital growth might be slower than before the announcement (by about 1-2 years).

I was actually thinking the opposite - over the next few months while the news is still fresh in everyones mind, it may be a good time to invest. Then hopefully when people see that it hasn't affected vacancies, the market confidence will return.

 

[Corey Batt]

http://www.theaustralian.com.au/in-...den-announcement/story-fnkpx5o5-1226782274376

There would be the Federal assistance that I hypothesised, it will be interesting to see what they come up with this week.

 

[TMNT]

and 2014s most deluded agent goes to.........

http://www.domain.com.au/Property/F... (postclick)&prevServer=Emails&haprof=1905605

edit: and found this one as well

http://www.realestate.com.au/property-house-sa-elizabeth+downs-115782411?rsf=emailalert-propdetails

 

[bez23]

Mighty quiet thread these days.

Seems like lots of activity in the market though. Good properties being snatched up really quick, maybe time to recover to 2009 prices soon?

 

[Beanie Girl]

I've got a brick house on 897sqm of land in Elizabeth Downs.
2 staffies run riot in the large backyard.
Currently rented out for $230 per week.
Should I sell or subdivide it and build another house behind?
Decisions, decisions

 

[TMNT]

How much did you pay and when?

 

[strongy1986]

I've got a brick house on 897sqm of land in Elizabeth Downs.
2 staffies run riot in the large backyard.
Currently rented out for $230 per week.
Should I sell or subdivide it and build another house behind?
Decisions, decisions

Subdivide - and move onto somewhere else

Probably not the area to be building new houses in. Will be harder to have instant equity after build due to low median prices and building isn't cheap. Also you tie your capital up for probably a year minimum

I would spread risk and find another subdividable block somewhere else

 

[Beanie Girl]

How much did you pay and when?

Hi TNMT, bought it for 169K in 2007.

 

[Beanie Girl]

Subdivide - and move onto somewhere else

Probably not the area to be building new houses in. Will be harder to have instant equity after build due to low median prices and building isn't cheap. Also you tie your capital up for probably a year minimum

I would spread risk and find another subdividable block somewhere else

Hi strongy, you have a good point.
To maximize return, subdividing the land and selling the house in front might be a good exit out. Or maybe keep the house in front for rental. I read on the forums that it's 80-90K for a 300-400m piece of land?

 

[Brady]

Could the property be renting for more?

Mine in Elizabeth East is $250 p/w, likely to go up to $260p/w in April.

$20p/w isn't a lot but makes it easier to hold and as mentioned maybe look to buy somewhere else that will give you immediate equity gain if you subdivide.

 

[Beanie Girl]

Could the property be renting for more?

Mine in Elizabeth East is $250 p/w, likely to go up to $260p/w in April.

$20p/w isn't a lot but makes it easier to hold and as mentioned maybe look to buy somewhere else that will give you immediate equity gain if you subdivide.

Elizabeth East is a lot nicer and more genteel than Elizabeth Downs!

I've been a bit kind to the tenants and kept the rent a bit below market rates. The couple is a young family who love dogs. The wife asked me one year if she keep another staffie whom she was adopting from an elderly couple who couldn't look after it anymore. My heart melted! The thought of a staffie without a home!

I once put the rent up $5 a year and just told the tenants, 'please, just look after the place'. They've been good to their word and keep the place clean and the lawns mowed neatly. The PM's report is always good.

The house is built like a tank but old so over the years, I've had to replace the water heater in the roof, the heater/aircon and shared with the back neighbours to put new fencing at the back.

Recently, the couple tried to clean patches of mould in the bathroom with all the regular cleaners but it just won't come off. So we are going to engage a professional painter to clean/paint over the mould. The bill should be approx $1000.

So little jobs of maintenance over the years. But have to decide soon what to do with the house. Sell, sub-divide or keep.

 

[bez23]

Hi TNMT, bought it for 169K in 2007.

Hm i bought a 1k+ sqm block for 160k last year and renting it for 240 . Good tenants but like you say, a bit of maintenance needed with these older properties. If its not affecting your cashflow at the moment, why sell? I doubt u will realize any capital gain unless u wait another few months or a year.

 

[strongy1986]

Hi strongy, you have a good point.
To maximize return, subdividing the land and selling the house in front might be a good exit out. Or maybe keep the house in front for rental. I read on the forums that it's 80-90K for a 300-400m piece of land?

I would definitely keep the house to rent. You can manufacture big yields this way.
Sell off the block and find your next project . If you get a good deal on purchase or have owned the place for many years you won't even need to pay down the loan

 

[Brady]

Elizabeth East is a lot nicer and more genteel than Elizabeth Downs!

I've been a bit kind to the tenants and kept the rent a bit below market rates. The couple is a young family who love dogs. The wife asked me one year if she keep another staffie whom she was adopting from an elderly couple who couldn't look after it anymore. My heart melted! The thought of a staffie without a home!

I once put the rent up $5 a year and just told the tenants, 'please, just look after the place'. They've been good to their word and keep the place clean and the lawns mowed neatly. The PM's report is always good.

The house is built like a tank but old so over the years, I've had to replace the water heater in the roof, the heater/aircon and shared with the back neighbours to put new fencing at the back.

Recently, the couple tried to clean patches of mould in the bathroom with all the regular cleaners but it just won't come off. So we are going to engage a professional painter to clean/paint over the mould. The bill should be approx $1000.

So little jobs of maintenance over the years. But have to decide soon what to do with the house. Sell, sub-divide or keep.

I get what you're saying, but you're doing a lot of maintenance on the property as you say. If this is continually coming from out of your pocket it can't be good. I think it reasonable to charge market rent, especially if you're keeping the property well maintained for the tenants. I would suggest at least $10p/w rent rise next time. That at least covers 1/2 the cost of the mould removal.

 

[Beanie Girl]

Yes, I hear what you are saying, Brady. Definitely, a $10 rent rise this time round. We haven't paid the $1000 yet.....
It was just that one year $5 rent rise, then another year no rent rise....just to give the tenant a reward for looking after the place and an incentive to warn us of small repairs before it became a big repair job......

 

[Brady]

Yes, I hear what you are saying, Brady. Definitely, a $10 rent rise this time round. We haven't paid the $1000 yet.....
It was just that one year $5 rent rise, then another year no rent rise....just to give the tenant a reward for looking after the place and an incentive to warn us of small repairs before it became a big repair job......

$5 rent rise was a reward IMO

No rent rise was punishment to you

 

[Beanie Girl]

No rent rise was punishment to you

Hahahaha!
I fully agree!

 

[Beanie Girl]

Hm i bought a 1k+ sqm block for 160k last year and renting it for 240 . Good tenants but like you say, a bit of maintenance needed with these older properties. If its not affecting your cashflow at the moment, why sell? I doubt u will realize any capital gain unless u wait another few months or a year.

Wolf-whistle!
Sweet deal, Bez!
Mine's P & I at the moment, after 5 years of interest only
Just been too busy (or lazy) to look for another Interest only loan.
Brady, I might be knocking on your door soon

Bez, which suburb of Elizabeth is your IP in?