Serious expenses.
Had Enough of This
- Thread starter ice
- Start date
Serious expenses.
Sounds good, only these props are around 6 hrs drive away. It's not just me that is affected. Thing is, you don't realise that he is the only one when you buy into the area. You use his bad report as a bargaining tool to get a discount & now the new person will want an even greater discount.
Sometimes you get what you pay for,cheap properties in the regional areas are like that because of just those problems. They sound good but you just have to luck out for good tennants. Could mortgage insurance be utilized some how to benefit you and take the pressure off a little?
good luck
good luck
Turning Around The Situation
Hiya Ice, im sorry you have had a bad run, however this CAN be turned around
I hear people tell you to put the properties on the market; this will cause 2 problems
1. the tenants will not present the house nicely to prospective buyers, thus meaning your properties will sell under the current market value
2. the selling time of properties is currently 12-16 weeks, meaning the problem isnt going to be solved quickly
i have some very different advice for you which might sound very off-the normal, however i make a large amount yearly through properties, so i hope this advice helps you, as i have been in a similar place.
1. Sell the property you have which has the 'best' tenants in it; as this property will be presented well and should obtain the optimun in price
2. with the money you make on selling this property, get ahead on your other properties, and eventually get each tenant out when their lease expires, then repair each one and either rent them out higher and do a periodical lease, or sell each one after you have perpared them for sale
I hope that helps
Sarah
Hiya Ice, im sorry you have had a bad run, however this CAN be turned around
I hear people tell you to put the properties on the market; this will cause 2 problems
1. the tenants will not present the house nicely to prospective buyers, thus meaning your properties will sell under the current market value
2. the selling time of properties is currently 12-16 weeks, meaning the problem isnt going to be solved quickly
i have some very different advice for you which might sound very off-the normal, however i make a large amount yearly through properties, so i hope this advice helps you, as i have been in a similar place.
1. Sell the property you have which has the 'best' tenants in it; as this property will be presented well and should obtain the optimun in price
2. with the money you make on selling this property, get ahead on your other properties, and eventually get each tenant out when their lease expires, then repair each one and either rent them out higher and do a periodical lease, or sell each one after you have perpared them for sale
I hope that helps
Sarah
Is that right Sarah.....do you wish to enlighten the forum with a few stories or details of your own. What's a ballpark figure for large ??
they say if it's only a loss on paper if you haven't sold, then it follows it's only a gain on paper if you haven't sold.
if you can flick off a cash draining resi IP and make a buck then good luck to you, go for it. It all depends what else you have going on and how it plugs into your overall portfolio
if you can flick off a cash draining resi IP and make a buck then good luck to you, go for it. It all depends what else you have going on and how it plugs into your overall portfolio
Couldn't disagree more...
Some of the regional areas that I have invested in have given me extremely good growth and yields close to 10%. A lot of forum members I know invested in other regional areas and have doubled/ trippled their investments within a few years.
Some of my properties in blue chip suburbs have given me very ordinary cap growth and ordinary rental returns.
Due dillignece is the key... I wouldnt dismiss regional areas for investing - They can be a great source for CG.
Harris
Wrap them? Knock 'em down? Re-zone?
Perhaps you could vendor finance ("wrap") them?
Or, if they are old weather boards - knock them down and sell as land? No building inspection report required.
Are any on a main road? Perhaps convert to commercial? Doctor's surgery? Child care?
Good luck.
Perhaps you could vendor finance ("wrap") them?
Or, if they are old weather boards - knock them down and sell as land? No building inspection report required.
Are any on a main road? Perhaps convert to commercial? Doctor's surgery? Child care?
Good luck.
Ice, care to say which regional town the bad properties are in ?
Why is it that the loser element of society own the $1,000+ dog/s, smoke a carton of Winnie Blues a week, drink a slab of Vic a week, pump out 3 or 4 kids, buy a brand new tough car, spend a 3rd world country GDP on tatts?
They are the people who can least afford to do it, and continue to be renters for the rest of their lives?
D.A.D.S - Dumb As Dog Sh*t.
Oh well; I need tenants, so must be sympathetic and not judge, ay?
Many of them are funded by honest (too honest ?) harworking taxpayers like us !
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This was nominated for best joke of the year - worth sharing.
A Somalian arrives in Sydney as a new immigrant to Australia
He stops the first person he sees walking down the street and says,
"Thank you Mr. Australian for letting me in this country, giving me housing, food stamps, free medical care, and free education!"
The passerby says, "You are mistaken, I am a New Zealander."
The man goes on and encounters another passerby. " Thank you for having such beautiful country here in Australia!"
The person says, "I not Australian, I Vietnamese."
The new arrival walks further, and the next person he sees he stops, shakes his hand and says, "Thank you for the wonderful Australia!"
That person puts up his hand and says, "I am from Middle East, I am not Australian!"
He finally sees a nice lady and asks, "Are you an Australian?"
She says, "No, I am from Africa!"
Puzzled, he asks her, "Where are all the Australians?"
The African lady checks her watch and says...."Probably at work."
A Somalian arrives in Sydney as a new immigrant to Australia
He stops the first person he sees walking down the street and says,
"Thank you Mr. Australian for letting me in this country, giving me housing, food stamps, free medical care, and free education!"
The passerby says, "You are mistaken, I am a New Zealander."
The man goes on and encounters another passerby. " Thank you for having such beautiful country here in Australia!"
The person says, "I not Australian, I Vietnamese."
The new arrival walks further, and the next person he sees he stops, shakes his hand and says, "Thank you for the wonderful Australia!"
That person puts up his hand and says, "I am from Middle East, I am not Australian!"
He finally sees a nice lady and asks, "Are you an Australian?"
She says, "No, I am from Africa!"
Puzzled, he asks her, "Where are all the Australians?"
The African lady checks her watch and says...."Probably at work."
My sentiments exactly......Australia needs to have a damned hard look at its work ethic and values........in another 20 years, hopefully Australians will look back in disgust at the apathetic mindless stupidity of poorly conceived and executed welfare systems......
The best form of welfare is a healthy economy able to provide all with a reasonable job........at the end of the day, it is not the govts' role to create the jobs....or provide money for nothing....both are unsustainable......IMHO, the govt's role is to ensure everyone plays fairly, and stay out of the way....
I like that joke, but I'd leave the Vietnamese out of it.....the great majority of them have an outstanding work ethic....though they don't like paying taxes....
as a great many wealthy people advocate - you are not required to pay a cent more than you have to. doesn't mean i agree with any form of evasion, but i believe we are obligated to reduce our taxes as far as legally possible.
i think kerry packer used to pay something like 9c in the dollar - but he used to spend a lot on the running of his cattle property in the local community of scone, even tho he could get the products required cheaper elsewhere. i think that's a better example of welfare - helping the local community to help themselves.
