I have rejected 2 applicants so far !

[redwing]

great work

We're getting $500 p/wk on one of our IP's rented fully-furnihsed and well outside of the CBD.

I've previously rented another fully-furnished and have seen a workmate recently rent a townhouse in Mandurah fully-furnished at $500 p/wk as opposed to $350 p/wk unfurnished.....it cost him around $21k all up to fully-furnish it 3 years ago

 

[Alex P Keaton]

I'll be getting $320 per week furnished. Thats pretty much the going rate for furnished studio/1 bed around the highgate inner city areas atm.

I should add, that I bought the property for $257 K back in 2008 with a $177 K loan on it. So I'm hoping by getting $320 per week it will be close to neutrally geared after all expenses are taken into account!

I dont think I'll ever sell this unit. It will be a nice little money earner. In 5 years time when I decide to buy my next property (a ppor) I should have some healthy positive cash flow from this beauty as well as from IP # 1

With IP # 1 that I bought in 2009 i'm currently getting $230 per week from the property that I have a $199 K loan on. I paid $210 K for it. I need around $270 per week for ip # 1 to be neutral.

What I would like to do next is to draw up a hypothetical of what rents I think I'll be getting in 5 years time. I'm hoping that I'll be earning some passive income and it will help to pay for my next PPOR mortgage. Basically I want these properties to pay for themselves before I buy my next one. My next one will definately be a PPOR as I have decided I'm sick of moving, I want to settle down close to family. This wont happen for a while though until rents rise.

 

[Alex P Keaton]

Well done APK ... and even better for ignoring us cynics who are been thru both good and tough times and hence encouraged you to take first offer!

Sleep easy - you deserve it!

thanks! yeah i'm glad I took my time. Actually the perth rental market is pretty hot right now. Vacancy rates are getting lower so I figured it couldn't hurt waiting a bit. As it has turned out most of the properties have been flying off realestate.com not too long after being advertised. (if priced right) As it turned out I only waited an extra week. Property is still available on the same day listed. So I didn't lose any rental payments.

 

[Alex P Keaton]

Sounds good to me Kim well done

ta



----

 

[wylie]

I'll add my congratulations for finding a taker for the place furnished.

Without reading back through 63 posts, can you remind us what your agent said it should rent for unfurnished, compared to what you are getting furnished?

I would have thought "furnished" would have been cutting down your rental pool considerably, but you've done well. The extra rent on top of what you are paying your parents should help to make your life easier and set you up for the next purchase.

 

[Alex P Keaton]

It's always great maximizing return through trying something different. Good on you.

The reason I asked about return is because a friend, who lives about 3k from the Adelaide CBD recently turned her very nice granny flat, into short term furnished (and serviced) accomodation, and her rent increased significantly - by $120 pw.

The difference there however, is she lives on site, and it's easy enough to do.

Actually she's just turned 2 city townhouses into the same. She's still working on her website and they're about 50% booked, 3 month ahead .

thats cool!



-----------

 

[Alex P Keaton]

great work

We're getting $500 p/wk on one of our IP's rented fully-furnihsed and well outside of the CBD.

I've previously rented another fully-furnished and have seen a workmate recently rent a townhouse in Mandurah fully-furnished at $500 p/wk as opposed to $350 p/wk unfurnished.....it cost him around $21k all up to fully-furnish it 3 years ago

thanks

wow thats a big difference. 350 - 500!

 

[Alex P Keaton]

I'll add my congratulations for finding a taker for the place furnished.

Without reading back through 63 posts, can you remind us what your agent said it should rent for unfurnished, compared to what you are getting furnished?

I would have thought "furnished" would have been cutting down your rental pool considerably, but you've done well. The extra rent on top of what you are paying your parents should help to make your life easier and set you up for the next purchase.

thanks wylie

unfurnished about $20 - $30 less. So around the $300 mark.

Yep definately, furnished cuts down my pool but there is always still a select market that need furnished.

Yep I'll be able to breathe easier again. Atm I'm kind of juggling my payments and its starting to get tight again. In a couple of months time I'll be under less stress money wise. Bank balance will be heading north again! Yey and today the tenant is paying 2 weeks in advance and will be moving in tomorrow. haha Its going to kind of feel like I have a 2nd job (2nd income) but i'm not even having to work for it.

 

[Alex P Keaton]

I should add, that I bought the property for $257 K back in 2008 with a $177 K loan on it. So I'm hoping by getting $320 per week it will be close to neutrally geared after all expenses are taken into account!

I dont think I'll ever sell this unit. It will be a nice little money earner. In 5 years time when I decide to buy my next property (a ppor) I should have some healthy positive cash flow from this beauty as well as from IP # 1

With IP # 1 that I bought in 2009 i'm currently getting $230 per week from the property that I have a $199 K loan on. I paid $210 K for it. I need around $270 per week for ip # 1 to be neutral.

What I would like to do next is to draw up a hypothetical of what rents I think I'll be getting in 5 years time. I'm hoping that I'll be earning some passive income and it will help to pay for my next PPOR mortgage. Basically I want these properties to pay for themselves before I buy my next one. My next one will definately be a PPOR as I have decided I'm sick of moving, I want to settle down close to family. This wont happen for a while though until rents rise.

I'm seriously thinking of moving into my Dianella unit when I move out of mum and dads in 1-2 years time. By then I reckon I'll be able to get around $350 - $400 per week for my highgate unit. The high $300's anyway.

The only thing stopping me is... lifestyle decision. I really enjoyed being so close to everything and only a short 15 minute bike ride into work. I know I'd be a lot better off financially if I move into my other ip. I guess I wont worry about it till the time comes! lol I wish I had bought 2 in highgate now.

Perhaps I could move into my Dianella ip for a couple of years and see how I like it there. In the meantime I'll benefit from nice positive highgate cashflow. Then I can decide what is more important to me. Lifestyle or getting ahead financially. Tough decision.

ps I love money so it'll probably mean a change of PPOR decision haha.

 

[Jake D]

Hey Alex,

Just curious, what do you do for work. Obviously this is a bit of a resurrected thread, and I CBF reading back through to to find the post but I seem to recall you saying you could earn more if you changed jobs but liked your current one too much.
If you're willing to make lifestyle compromises to save money on your PPOR/IP arrangement, why not make work changes to earn more?

 

[redwing]

Hi Kim,

Unsure if it was mentioned in the thread, but did you get a depreciation schedule done inclusive of furnishings?

 

[Alex P Keaton]

Hey Alex,

Just curious, what do you do for work. Obviously this is a bit of a resurrected thread, and I CBF reading back through to to find the post but I seem to recall you saying you could earn more if you changed jobs but liked your current one too much.
If you're willing to make lifestyle compromises to save money on your PPOR/IP arrangement, why not make work changes to earn more?

Nah not interested in changing jobs. This one is nice and stress free. Pays not to shabby either. Thats what i'm after

 

[Alex P Keaton]

Hi Kim,

Unsure if it was mentioned in the thread, but did you get a depreciation schedule done inclusive of furnishings?

Yep inclusive of furnishings