Newbie Investment Property Advice

R

Rodion3028

Hi we wanted to rent our investment property, but I rang up land lords association in Victoria, they said the market ir really bad. And its really competitive and they only help members. I asked them how could I get positive cashflow. I also asked the same question to a Brian Mark Real Estate agent. None of them were able to help, the real estte agent told me sell now if you want more money in the near future sell and also if you cant afford to pay for the property. Or sell later if you want more money down the track.

I have read Rich Dad Poor Dad books they mention that positive cashflow is all you need as with out it the money is going out of the pocket and not into your pocket.

Please help.
 
Rodion3028 said:
Hi we wanted to rent our investment property, but I rang up land lords association in Victoria, they said the market ir really bad. And its really competitive and they only help members. I asked them how could I get positive cashflow. I also asked the same question to a Brian Mark Real Estate agent. None of them were able to help, the real estte agent told me sell now if you want more money in the near future sell and also if you cant afford to pay for the property. Or sell later if you want more money down the track.

I have read Rich Dad Poor Dad books they mention that positive cashflow is all you need as with out it the money is going out of the pocket and not into your pocket.

Please help.
Click to expand...

Positive cashflow is just one method of making money in real estate.

Can you afford to keep it if you rent it out?

What would you do with the money if you sold it?

Read a lot more before deciding anything...
 
Rodion3028 said:
Yes that is the mob.

And the house is:

www.realestate.com.au/property-house-vic-werribee-405139345
Click to expand...

Two things jump out about the ad.

1. The out of area agent - any reason for picking them rather than a local? They might not know rents and values in the area very well (see below!).

2. The asking rent is way too high. $290pw won't attract a tenant - unless they're desperate. Especially when you check what's going down four doors away at No 9, which is now advertised to let, competing with yours.

Nice brick house, with air conditioning and looks OK inside (except for the pigsty shed photo, which the agent was silly to use). Asking $250pw, which is more sensible.

http://www.domain.com.au/Property/For-Rent/House/VIC/Werribee/?adid=6775788

Heaps of bigger houses in nicer streets are advertised for $260 - 270pw. Hence $290 is too much and a fairer rent might be $50pw less.

A small amount of negative cashflow beats a big amount of negative cashflow which is what you'll get if you hold out for a rent that's too high and have weeks if not months of vacancy.
 
It been vacant for more then a year now.

Reason we picked the agent was that we knew them and they said they will do good for us.

We still want to rent out at the $300 mark. And we did find one person. But we dint want to select him as we thought they would wreck our house, as you can see its fully renovated.
 
Rodion3028 said:
It been vacant for more then a year now.

Reason we picked the agent was that we knew them and they said they will do good for us.

We still want to rent out at the $300 mark. And we did find one person. But we dint want to select him as we thought they would wreck our house, as you can see its fully renovated.
Click to expand...

OMFG. Are you serious? I agree that it looks like a better standard than the comparable $250 property - but not 20% better. The market has told you that the price is too high & for 12 mths you've refused to listen. If you'd listed it for $250 12 mths ago you'd be $13,000 better off. You are at least $13,000 behind!! How long are you able to keep this up? Change agents & drop the price. Maybe start at $275 or $280 and if you get no bites within a week or two drop it again.
 
You can see that we ronovated all the floor all the wall all the rooms with wardrobes, the whole kitchen, the roof, the fire place, the air coniditioning, the out side walls nad the list goes on and on.

A matter of fact there where more then 2 tenants that we refused. As we thought they would wreck our property as you see it is fully renovated house with 700 + square meters of land. By reading the rich dad poor dad books I found out its not the looks of the property that count but what are the hard figures on the property. We are not willing to drop the price to what you mentioned. Its $300 or esle we are going to rent out by the room for $140 each room.
 
lol. While I do agree with Robert Kiyosaki's principles, I think you are being a bit rigid in your application of them. In fact, by not renting our your property you are doing the exact opposite of generating cashflow....don't be so stubborn and just get someone in there!
 
I think your giving Robert a bad name. You havent done your homework asking that much for rent, unless you call a phone call to the landlords association and the selling agent homework.....

You have overcapitalised if you thought the reno would increase the rent, again through not doing your homework.

Reread the Kiyasaki books, he is very adamant you need to know your own business, do the research.

That said, you have learnt (made a mistake) early, and you can now change. Dont make the second mistake robert writes about, about the invetors who blame others for their own mistakes, and uses that as an excuse not to continue....

Positive cashflow is out there, but it involves work/research. the only people who are going to give it to you are actually expecting payment, in one form or another, disclosed or not....
 
1 whole year empty??? since you have mentioned hard figures pls consider the hard figures of how much you are down by insisting on $300/wk Vs renting it out a year ago at say $270
 
Rodion3028 said:
It been vacant for more then a year now.

Reason we picked the agent was that we knew them and they said they will do good for us.
Click to expand...

Please read these two sentences again and tell me whether you think your agent is still "doing good"?!?

Although, I suppose even an out-of-town agent can't really do much when faced with a stubborn landlord who is asking for too much rent...
 
I smell a troll...


Or are people really that ignorant to ask for advice, and then refuse it without asking for any explanation of why the advice might be a good way of going about it?
 
If you go through the OP's past posts, he (to his credit) has taken on board advice before (re: selling his $74k car etc)...
 
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