For sale Rocky and Bundy houses

[markpatric]

I have 2 properties for sale one in Rocky one in Bundy.
Both are $110,000.
Rocky is three bedroom plus sleepout in Park Avenue no flood, rents for $130 per week but this could be raised it`s been that for a couple of years. Good longterm tenants.
Block is 700sqm, home is fibro cottage in great area close to schools shops etc. OK condition could do with cheap reno but is quite big has an attached carport also, tin roof.
Bundy house is a workers cottage with a difference, recently fully restumped but is in fair cond, needs painting etc, is in a non urban area, which basicly means it flooded many years ago but not to floor level, it is 100 metres to coles woolies and a arcade, this is all being upgraded for millions in the coming year. Ten minutes to bagarra beach, two bedroom, rented for $135 but I have been told by real estate will rent for $200 minimum with reno cost around $15- $20,000. This is the cheapest house in Bundy and the spot is right in town very close to a commercial area, I need to sell as I need money for ppor otherwise I would reno and keep long term as it will easily be CF+.
Bundy is a tentative sale so must be cash buyer, no condition contract.
Just post your email and I can send you pictures.

 

[markpatric]

Update time.
Rocky has has two offers the highest being $95,000 which I didn`t accept.
Bundy has had many offers, all too low, one of $100,000 which I accepted but fell through due to lack of finance, will be fully renovated and rented over the next month or two so is off the market, would still listen to the right offers though.

 

[markpatric]

Another update had an offer of $110,000 on the Rocky house, they also left a hefty deposit but fell through at the last minute due to lack of finance.
So far it seems I have had many offers from property tycoon wannabees, good luck to them but it is frustrating trying to sell house time an time again to people with ..........................................no money.

 

[Jacque]

Another update had an offer of $110,000 on the Rocky house, they also left a hefty deposit but fell through at the last minute due to lack of finance.
So far it seems I have had many offers from property tycoon wannabees, good luck to them but it is frustrating trying to sell house time an time again to people with ..........................................no money.

So, Mark, you're trying to sell these privately? Why didn't you go with a REA?

 

[markpatric]

Jacque I was never selling privately just letting others know they were on the market if interested.
I think some made offers from the forum.....very low and as I said many couldn`t get finance so in effect my house was off the market for a majority of the time it was listed, I don`t agree with lowball offers and don`t even reply to them, investors using this strategy should try being in the position of the seller, anyway what goes around comes around!.
Rocky settled yesterday as I said in another thread, sold for $97,500 in the finish(paid $65,000 a little over a yr ago, spent nothing on it), more problems but I`m happy considering the market and other things I need to get done with the money, I have been in R/E limbo for a little while now.
I personally will never invest so far from home again.

 

[djones]

I have been in R/E limbo for a little while now.
I personally will never invest so far from home again.

Mark,

Sometime back i was also considering buying an IP in another state, however i didnt do it as i wasnt comfortable with the idea of Remote management...

I will like to know how was your experience and what specifically makes you say that you will never buy away from home esp. when they have turned out as good investments for you.

-dj.

 

[Jamie]

Mark,

Sometime back i was also considering buying an IP in another state, however i didnt do it as i wasnt comfortable with the idea of Remote management...
-dj.

Hi dj,

My own opinion is that investing away from home allows you to take advantage of the fact that there is not one property market, and that different areas move at different times. If you insist on investing only in your local area, then you are constrained by the market forces that govern that particular city/suburb.

There are times in every cycle where one city/state might be stagnant, while another might still be moving forward - to limit yourself to one means limiting your chances of making good growth somewhere else while your local area remains flat.

Remote management can definitely have its problems, but, like most issues that arise in property investing, these can be mitigated by good research not only into the areas youre investing in, but also on the people you'll be using to look after these investments.

A common theme youll find is that investing in real estate is a business, and, like any business, your success relies on the people you surround yourself with. Surround yourself with the right people, and the problems you see with remote management will disappear.

Best wishes,

Jamie.

 

[markpatric]

What Jaime said is great in a perfect world if we have money and time.
I generally buy to eventually renovate, and Rocky was just too far away.
Also agents were up to tricks and I was too far away to check things out better.
I made a little bit of money so I shouldn`t complain, but there is info out there which is hazardous to follow imo, I would never buy a property sight unseen for instance.
Due diligence is more important the further away we buy imo, problem is we cannot have local knowledge and click our fingers to have the right people/tenants/property managers/tradesman.
I would say buy as close to home as possible to start with.

 

[Aceyducey]

Using the same principle, I only buy shares in companies based in the same city as me. I only invest directly in companies that have their operations in the local neighbourhood and would only save money in my local bank....

Think again about local vs remote investment.

It's about where you believe you can realise the greatest gains (with reasonable risk), not about geography.

Cheers,

Aceyducey

 

[see_change]

Mark,

Sometime back i was also considering buying an IP in another state, however i didnt do it as i wasnt comfortable with the idea of Remote management...

I will like to know how was your experience and what specifically makes you say that you will never buy away from home esp. when they have turned out as good investments for you.

-dj.

I think management of remote IP's has as much to do with choice of the property as with the choice of the Property manager.

In logan we bought a couple of places which could only be described as at the bottom of the market. All sorts of problems as they attract the wrong type of tenant.... While we've be selling , the troublesome houses were the first to go on the market , but not necessarily the first to sell.

Because of this , in Rocky we bought houses that were a couple of steps up from the bottom. In the 85 - 100 price range ( one even 123 ) as opposed to the 60 - 70 that some people were buying. ( 2003 ) .

These attracted a better type of tenant , and we've had no significant tenant problems.

See Change

 

[geoffw]

I had a proeprty in England. I didn't realise until I returned to the property eight years later how bad the management, and how much they had let the property run down. If it had been close enough for a visit every few years, I would have realised this much sooner.

(Fair wear and tear is one thing. But they had never noticed that the tenant had repainted very badly. The ivy which had grown indodoors had not been noticed).

 

[markpatric]

It`s all good advise, but not advise that we ALL should follow, that`s all I mean, it is much easier to deal with any problems if we have money and time.
If we don`t, we could land in trouble following a lot of what is the general concensus.
In my experience we can have properties with no problems or we can have properties where everything is a problem, but yes to afford to buy better properties is a given......better more stable tenants, less maintanance etc.
But an extra 10 grand is an extra 10 grand if we can`t get it we can`t get it.
We have to do the best with what we have and if that means we have to buy interstate so be it, I did make money afterall.

 

[Bricks & Mortar]

Do U Buy Interstate!

It`s all good advise, but not advise that we ALL should follow, that`s all I mean, it is much easier to deal with any problems if we have money and time.
If we don`t, we could land in trouble following a lot of what is the general concensus.
In my experience we can have properties with no problems or we can have properties where everything is a problem, but yes to afford to buy better properties is a given......better more stable tenants, less maintanance etc.
But an extra 10 grand is an extra 10 grand if we can`t get it we can`t get it.
We have to do the best with what we have and if that means we have to buy interstate so be it, I did make money afterall.

Mark,

I too bought property, in the Bundaberg region,
I too bought into the bottom end, also purchasing 2 plots of vacant land
I too had to travel

....and I'm an Victorian, as I can say YES there is trouble with distance, even more when you have to deal with a builder. We had to site inspect, clear the block and source all the fixture & fittings for the new house, all within a two week period on our first visit.
On final inspection (it was not finished) We paint the place inside & out and built a verandah across the front of the house and landscaped it all ourselves as the builders quotes seemed a bit too dear.
Three weeks that time, and we had two days rest out of the total time we were there. Yep it was real hard work, 5am-6-30pm daily.
The time came out of our annual leave, so I know where your coming from.
Fortunately, the children are old enough (young adults really) so that bit was a bit easier.

Would I recommend it to someone else

YES!!

Wouldn't trade it. Sure it was hard, We done our research and knew basically what we were in for. Initially we even initially done our own conveyancing on all three properties, as well.
The other property still remains a vacant block.
We are flying up north in August, to source the possiblity of building Units,
Incorporating that trip, with inspection of the other two houses and an unsighted property we purchased in Townsville June 04.

Sure, If we had the cash to splash, we probably wouldn't have done the work... but we had to start somewhere, and rather than buy one mid-range property, we picked lower range that needed attention, and could pick up more than one. (even if it was land)

But issues that happen with builders, repairs, maintenance or property management for that matter, can just as easily happen close to home. So let that put anyone off!

FWIW.. DJ, the re-valuations interstate have risen 350% except for Townsville 140% whilst the values in Vic were 200%
so I highly recommend you base you ideas around 'Jamies' post


Cheers
Timm

 

[chook]

Bundaberg

Hi Timm

I bought a block of land in Bundaberg 2 years ago and went up there and did a lot of research before I bought it. About a month ago I rang an agent out of curiosity to see what it was worth and was shocked to find out how much values had gone up. I gave him the listing and it sold before going on the market. (I wasn't even planning on selling). I got nearly 4 times what I paid for it. Now before you all start thinking how rich I must be I'll tell you I paid 24K for it and sold it for 92K. So I will start my research again for new areas to invest in - I think Bundaberg has pretty well run its course now. Overall I think all the effort you put into researching areas and then travelling up to see them pays off - well it did for me.

 

[markpatric]

Congratulations Chook that`s a good win!, and yes Timm point taken.
I`m not sure if Bundy has run it`s course, maybe so but the agents give a different message, also many others I talk to said most places sell within 3 weeks still.
I just got back today from my first three day reno plunge on my Bundy house which looks like a bomb hit it and has been vacant now for some time, in three days we built in battens underneath and painted the roof, the roof cost me $36 to paint and one hour with my spraygun.
House still looks like a dive but next week the new bathroom goes in and painting the house will begin among other things.
Hoping to have the house finished in a few weeks on a shoestring budget of around $12,000, which includes restumping at a cost of $4500, I have pictures of the whole process which I will put up in a few weeks.
Agents and others also say rentals are extremely in short supply and rents have risen quite a bit.
I agree with the right knowledge and planning it can be very rewarding to buy interstate, but only if it is a necessary thing to do.

 

[markpatric]

Another quick update cost has blown out from $12,000 to $22,000.
Still looking good though.
Added to cost was lining the bathroom and tiling it which became a necessary thing to do, also the kitchen looked shoddy compared to the rest now so having to line, tile and replace the cupboards there also, and some landscaping costs and also replacing all guttering and downpipes too now, and timber blinds throughout.
I swore this would not happen but at the end of the day the house will be fully renovated now with all plumbing replaced.
I`m starting to think I want to live in it!.

 

[markpatric]

Another update the house in Bundy is finished and on the market for $149,000, renovation cost ended up being around $27,000-$30,000.
It will rent for $185 per week is right in central Bundy 100 mtr from the new shopping centre and on the Bagara side of the city centre.
It will be the next spot earmarked for development being on the fringe of commercial CBD and has a massive amount of traffic passing by.
I may end up keeping the property but would rather sell right now as I have other uses for the money, it is certainly a property "with a twist".
By the way has great neighbours either side also!.

 

[see_change]

Another update the house in Bundy is finished and on the market for $149,000, renovation cost ended up being around $27,000-$30,000.
It will rent for $185 per week is right in central Bundy 100 mtr from the new shopping centre and on the Bagara side of the city centre.
It will be the next spot earmarked for development being on the fringe of commercial CBD and has a massive amount of traffic passing by.
I may end up keeping the property but would rather sell right now as I have other uses for the money, it is certainly a property "with a twist".
By the way has great neighbours either side also!.

It's interesting how that happens Mark.

We had it happen with one of the earlier ones we bought in Logan , so when we bought in Rocky ( with one exception on a 1400 m2 - medium denisty site ) all of the houses were quite nice , not needing significant work.

Meant that we had minimal maintenence and they sold fairly easily.

See Change

 

[markpatric]

With my house in Rocky I did not even touch it in the finish, just sold it for a decent profit but Bundy has been a struggle as its been vacant for a long while....maybe 12 months now due to it being in a dangerous condition.
The stumps were leaning the house was not even sitting on a few of them, so 90 % of problems were fixed right away with restumping but there was also a bathroom downstairs if you could call it that, which had to go and a new one built in the house upstairs etc etc the list goes on, it`s not the same house now.

 

[markpatric]

The George Street house in Bundaberg Central house is finished and rented for $175 a week to a great tenant.
It`s on the market for a very realistic $142,000, you simply won`t find another property with a twist and renovated in Bundy for this price with such a good return.