First IP

Hi,

I am an avid reader on this forum and must compliment on the quality of information. Thanks to everyone participating on the forum. I have just finalized my first IP and have a few questions :

1. The seller wants a settlement date of 6-8 weeks and i want a settlement of 4 weeks time, which he has agreed to. However, he wants to rent the property back. Would it be a good idea to rent it back to the seller or get the possession, do some work on it (Its a timber frame house and needs some work) ? This way I might be able to increase the rent of the property.

2. Should I look at a shorter settlement, say before June 30th and put him as a tenant. Will i be able to claim tax benefits in this FY ?

3. Can anyone suggest me any good PMs in Adelaide ?

Thanks for your responses in advance.

Cheers
 
Hi,

I am an avid reader on this forum and must compliment on the quality of information. Thanks to everyone participating on the forum. I have just finalized my first IP and have a few questions :

1. The seller wants a settlement date of 6-8 weeks and i want a settlement of 4 weeks time, which he has agreed to. However, he wants to rent the property back. Would it be a good idea to rent it back to the seller or get the possession, do some work on it (Its a timber frame house and needs some work) ? This way I might be able to increase the rent of the property.

2. Should I look at a shorter settlement, say before June 30th and put him as a tenant. Will i be able to claim tax benefits in this FY ?

3. Can anyone suggest me any good PMs in Adelaide ?

Thanks for your responses in advance.

Cheers

Maybe you can increase the rent of the property to what you want if you already have a captive tenant...besides , he wont be short of money !!
 
What length of lease is the seller wanting....6-months...12-months? Time frame might make a difference to your decision if you want to reno.

Also, are you considering minor or major renos? Can any of these be done with the tenant (seller) in place? If so, a 6-month lease at a modest rent, whilst you do some renos, might be a good option for you. Win-win for both of you.

If they are major renos, you could always have a month-to-month rental agreement with the seller. Then you have rental income whilst you are getting quotes and organising tradies, etc.

Ofcourse, you may be considering doing the renos yourself...so that presents another rental scenario.
 
What length of lease is the seller wanting....6-months...12-months? Time frame might make a difference to your decision if you want to reno.

If so, a 6-month lease at a modest rent, whilst you do some renos, might be a good option for you. Win-win for both of you.

Hi Sailor,

Thats a good idea, thanks. I might put a clause asking them to give me access to do some renos during the lease. They want a lease of 6 months atleast. I am planning to do most of the renos myself. Even thinking of adding a room with the help of a professional.

My plan is to convert it into a student accommodation. Any suggestions please ?

Cheers
 
PM in Adelaide

Hi,

I am an avid reader on this forum and must compliment on the quality of information. Thanks to everyone participating on the forum. I have just finalized my first IP and have a few questions :

3. Can anyone suggest me any good PMs in Adelaide ?

Thanks for your responses in advance.

Cheers

can anyone suggest a good PM in adelaide and any suggestions on how and what to do to convert the house as a student accommodation ?
 
Hi FirstMill,

Sorry i cant answer your questions but i just wanted to congratulate you. I also had my offer accepted on my first IP today :D . Im sure youre feeling like me: very excited and a bit scared at the same time.
 
Hi FirstMill,

Sorry i cant answer your questions but i just wanted to congratulate you. I also had my offer accepted on my first IP today :D . Im sure youre feeling like me: very excited and a bit scared at the same time.
Congrats tk79...how exciting for you...your very 1st IP...so are you celebrating?
 
can anyone suggest a good PM in adelaide and any suggestions on how and what to do to convert the house as a student accommodation ?

I've converted a house to student accomm and talk about it here and here.

Xena (SA) and Simon (NSW) have also done it, do a search to see their experiences.

Good luck :)
 
More questions

I've converted a house to student accomm and talk about it here and here.

Xena (SA) and Simon (NSW) have also done it, do a search to see their experiences.

Good luck :)

Hi Twitch,

Thanks for the info. A few querries :

1. What kinda house did u buy ? Mine is a timber frame house with carpets. You had spent 40K on renos, its pretty amazing to have additional 3X1 done in that price. How did u manage it ?

And what did u buy for $13 in furnishings :D .

Cheers
 
Hi Twitch,

Thanks for the info. A few querries :

1. What kinda house did u buy ? Mine is a timber frame house with carpets. You had spent 40K on renos, its pretty amazing to have additional 3X1 done in that price. How did u manage it ?

And what did u buy for $13 in furnishings :D .

Cheers

I bought a house that had a huge 2nd family room and a huge laundry. A few internal walls and a bit of plumbing and I had those spaces comverted to the 3 brs, mini landundry and 1 bathroom. Reno'ing within a footprint is far cheaper than extending the footprint. It was with that in mind that I chose the house.
 
Progess

Hi,

A quick update on my first IP. I paid the advance, appointed conveyancer. The inspection reports we OK.

My agent is working on the loan and it should be approved very soon.

Cheers
 
Hi,

I am an avid reader on this forum and must compliment on the quality of information. Thanks to everyone participating on the forum. I have just finalized my first IP and have a few questions :

1. The seller wants a settlement date of 6-8 weeks and i want a settlement of 4 weeks time, which he has agreed to. However, he wants to rent the property back. Would it be a good idea to rent it back to the seller or get the possession, do some work on it (Its a timber frame house and needs some work) ? This way I might be able to increase the rent of the property.

2. Should I look at a shorter settlement, say before June 30th and put him as a tenant. Will i be able to claim tax benefits in this FY ?

3. Can anyone suggest me any good PMs in Adelaide ?

Thanks for your responses in advance.

Cheers

1. Make sure you check the property for settlement that everything is in working order, once he becomes your tennant - he may start finding all sorts of problems he wants fixed! :(

3. Where in Adelaide is your IP?

Cheers
Steve
 
1. Make sure you check the property for settlement that everything is in working order, once he becomes your tenant - he may start finding all sorts of problems he wants fixed! :(

3. Where in Adelaide is your IP?

Cheers
Steve

Hey Steve,

My IP is in Windsor gardens, very close to where i live.

As regards to checking for settlement :

1. Can i ask the vendors to fix couple of things before it settles ?
2. Since the property is near my house, will it be a good idea to self manage it, rather than paying the PM ?

Cheers
 
No & No.

The vendors have to hand over the property in the same condition as it was when you signed the contract. If it had, for example, stained carpet in the hallway then they are under no obligation to fix it.

On the other hand if they damage something in the meantime they need to make good. Also if something which can reasonably be expected to work (eg oven, cooktop, auto garage door) doesn't work then tell your solicitor who will try and get compensation for you. Those kind of things are good to confirm they are in working order in the pre-settlement inspection.
 
No & No.

The vendors have to hand over the property in the same condition as it was when you signed the contract. If it had, for example, stained carpet in the hallway then they are under no obligation to fix it.

On the other hand if they damage something in the meantime they need to make good. Also if something which can reasonably be expected to work (eg oven, cooktop, auto garage door) doesn't work then tell your solicitor who will try and get compensation for you. Those kind of things are good to confirm they are in working order in the pre-settlement inspection.

Thanks
How about self managing the property ?

Cheers
 
No & No.

The vendors have to hand over the property in the same condition as it was when you signed the contract. If it had, for example, stained carpet in the hallway then they are under no obligation to fix it.

On the other hand if they damage something in the meantime they need to make good. Also if something which can reasonably be expected to work (eg oven, cooktop, auto garage door) doesn't work then tell your solicitor who will try and get compensation for you. Those kind of things are good to confirm they are in working order in the pre-settlement inspection.


Yeah unfortunately I just found that out the hard way on the IP I just bought, agent said oven was working fine - even turned it on. Guess I should have checked to see if it got hot! :eek: Anyway, it's there problem as I'm holding back $500 from settlement until they fix it.

Firstmillion - my IP's are up North, don't think my PM comes down that far. Maybe shoot Xenia here on SS a personal message, she may be able to manage it for you, or recommend someone.

Cheers
Steve
 
Thanks
How about self managing the property ?

Cheers

Personally I would'nt self manage ever, even with the existing tennants I have who I know are no problem. Too much hassle chasing up tennants for rent, calling if they haven't paid on time, doing inspections. Then you have the added hassle of having to take care of council rates, water rates etc. If you have a PM it's all done for you, and you just get the rent after expenses are taken out.

This is all especially true once you have multiple IP's.

I personally also don't really want to deal with my tennants, I've never seen them, and I never want to. Even when I give them gifts @ Christmas and for bank valuations etc. I send someone else to give them the gifts. It's much harder to increase rents once you've met and become friendly with them.

Cheers
Steve

PS and in the end, after tax deduction, PM doesn't really cost that much.
 
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