Interesting point about power

From: Phillip Jacovelli


..not sure if many others in this forum have come across this – worth noting.

I settled on a block of flats in rural Victoria, where some of the units have been vacant for more than 12 months. I phoned the power company in the area to connect the power so that I can commence renovation work in order to make them acceptable to the rental market. I was surprised to hear that the power company couldn’t enable the power because since the power has been off for more than 12 months – then an electrician will need to perform an inspection of each unit and fax all necessary documentation to the power company giving it the all clear. Apparently the electrician is supposed to replace any cracked wall sockets and switches and anything else he or she may find!!

If I had of known that this was the case I would have included this as a condition and used this fact as part of my negotiation.

…live and learn !!!

PJ
 
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Reply: 1
From: Gail H


You sure do live and learn Phillip. Good that you're philosophical about it. The fact is, you simply don't find out about a lot of this stuff until you jump in.

Good luck with the renos, hope the power doesn't cost too much, and thanks for sharing your lesson.

Gail
 
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Reply: 2
From: Asy .


Phillip,

Since you have already settled on the flats, can you tell us about the deal? I am interested in blocks in rural areas.

Thanks

asy


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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Reply: 2.1
From: Phillip Jacovelli


Sure Asy,

Purchase 120K
Around 20 years old
6x2 bedders
All electric
2 occupied
Some have been vacant for 3yrs !!!
20K reno work required
Gross rental upon completion would be $85x6=$510pw=$26k pa
Return 26/140~18% (not counting expenses)

rgs
PJ
 
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Reply: 2.1.1
From: Mark Laszczuk


Phillip,
If some of them have been vacant for more than three years, could you share the vision you had that led you to believe you could rent them out?

Mark
'no hat, some cattle'
 
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Reply: 2.1.1.1
From: Phillip Jacovelli


Mark,

Would I rent them in the state that they're in? - No,

Would I rent them if they were cleaned up? - Yes,

Is that a guarantee that they will be rented? Of course not. The area has many shabby looking places up for rent but there appears to be a shortage of "nice" places available. A colleague has a unit that he spent a week to brighten up prior to Christmas (paint, garden etc, simple stuff).

He came home from cleaning it up a couple of days before Christmas, and the next day the the agent called him to tell him he had leased it! The first person to see it took it. Coincidence? Who knows, but thats encouraging.

Keep you posted.

rgs

PJ
 
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Reply: 2.1.1.1.1
From: Asy .


Thanks :eek:)

Good luck with your reno!!

asy

"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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