Found Potential IP - One Issue

A

AndrewT

Have been looking for our next IP after getting pre-approval from the bank to go ahead, keeping an eye on particular areas there is one house that has popped back up for sale.

It is a 5 bed, 2 bath, 2 car on 400sqm block. Other 5 bedders are renting for $560pw in the area. Price wise, it was up for 450k for 2 months - then went to auction which fell through. Now it's been listed substantially lower 375k (sounds like some good conditioning by the real estate agent :rolleyes:). So all in all, it is over 7% yield. Figures match up nicely.

The actual advertisement doesn't list the address, but doing some due diligence I was able to locate the house and was shocked to find that it has NO backyard!!! Literally. The house is on the back of the block with a fence directly behind - no wonder it hasn't been selling!

I am thinking I can approach this two ways - either leave it, not worth the hassle, hard to resell (even though we plan on keeping) OR put in an offer lower then the current price, something around the 350k mark but my main concern would be finding someone who wants to rent a place without a backyard but if I could the rental yield even at 500pw would be nice. On the plus, it does have a big front yard! :rolleyes:

EDIT:

See photo attached - there is some yard around the front and side. Maybe with some creative use of the fencing I can create an enclosed private area?

EDIT AGAIN!

Found some more information. The owners have actually purchased somewhere else and that was 4 months ago. Each advertisement that I have found regarding the house is listed as a MUST SELL THIS SATURDAY. Might be perfect opportunity to pick it up even cheaper?
 

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So what, renters don't like work anyway. You'll up renting it to a larger family, there's a massive front yard. A park down the road, backyards are a thing of the past
 
Just make sure you get a good discount on price because when you come to sell (one day) you will have the same problem. I know a local house where the owners reconfigured two blocks into one and one house was left with no back yard. There was a huge timber fence right outside the back windows. It took a looooooong time to sell and no doubt affected the price.

Your photo looks like there is another roof within spitting distance, which is worse. It will deter some renters as well.
 
Looks like the front is already partly fenced. Short length of pool fence or something similar just back along the driveway would give an enclosed yard for the little kiddies.
 
It's not always a good idea to disclose details.

Some years ago, somebody who posted details on the forum subsequently had some other forumites biding against him- people who had previously not been interested parties.
 
That's fine. I wasn't going to disclose the details but upon discussion with my partner we have decided against it just for personal reasons. I will keep looking for something more suitable to our plans so if someone wants to enquire about it - go ahead :)
 
I believe there was, the house next door is exactly the same and has a large backyard. They sub divided it and sold the rear off i think.
 
Aah I get it. Thanks... can't see a huge market for that kind of property though! I'd much rather have no front yard and a backyard... wait... that's the kind of place I live in right now! No wasted space, so to speak...
 
Its exactly what i have here, i have less than 2 metres from my master window to the rear fence and 2m past that is the neighbours house. It doesnt bother me a bit.

put a nice deck on the front, a fence and some screening plants. It will encourage louder activities ie bbqs and socialising to the front of the house.

i sit out on my front deck and watch the cars, suncorp stadium fans walk past.
Im 3km from Bris cbd so we are used to stuff like that here.
 
geoffw said:
It's not always a good idea to disclose details.

Some years ago, somebody who posted details on the forum subsequently had some other forumites biding against him- people who had previously not been interested parties.
Click to expand...

I've frequently been approached by someone on the forum to give them various property details and links so they can advise me...in time I realised that's what they do to everyone and stopped responding to the troll.
 
MsAli said:
I've frequently been approached by someone on the forum to give them various property details and links so they can advise me...in time I realised that's what they do to everyone and stopped responding to the troll.
Click to expand...

I got in trouble for keeping information to myself for the same reason.
 
Ideo said:
I got in trouble for keeping information to myself for the same reason.
Click to expand...

Ideo, I didn't follow. Why did you get in trouble? If it's your find, you have the right to not disclose it till you've done the deal, or not share it after either if you didn't want to. I'm talking about the deal itself and not helpful info to people.
 
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