One Big Learning Curve!

Only just completed settlement on my first IP and now I realise how easy it is to make errors as a newbie to the game.

I've often heard experts often say that property investment is all about the numbers.

It's not.

Particularly when you're holding a property which seemingly no one wants to rent because of a single detail.

I did my due diligence and got a building and pest report done as well. No major issues, house was well presented with not much more than a few minor issues. Valuation for finance also came up okay and no issues to settlement.

First thing my property manager tells me after doing an inspection: "the lack of a side fence is going to put off a lot of potential tenants".

So here I am now trying to sort out getting a standard side fence in, not budget blowing by any means. However, the neighbour (who has absolutely no fences) is currently resisting and putting up a fight about having to fork out her half for the fence which could delay installation for weeks - that could also affect vacancy.

The vacant property isn't going to cripple me by any means, but it's certainly an expensive mistake that's reinforced looking at all the details that matter to a target tenant market.

I'm interested to hear others stories about dumb things they've done or overlooked as investors.
 
If all the nearby properties have fences, and yours doesn't, isn't that sort of obvious? On the same sort of level as, no one says to make sure there is a front door, say, but you should realise that it's a problem if your property doesn't have one?

In any case, it's still a matter of numbers. Cut the rent to the point where people won't care about the side fence would be one 'number' solution. If you'd assumed that lower rent to be what you would get and priced your offer accordingly, it would make sense.
 
As time rolls on you learn...

I'm interested to hear others stories about dumb things they've done or overlooked as investors.

Not dumb.

Of course people with young kids and dogs would want a fence or if you are near shops where people might take a short cut across your property.

Most tenants want...
Clean, neutral colour place with window covers eg blinds and security screen fly screens and security front door.
Airconditioner and good room lighting.
Heat lamp and fan (which they often don't use) in bathroom.
Easy to maintain yard generally with minimal mowing and no care gardens.
Off road parking at least.
Close to shops, transport, schools and out of flood.
TV connection if new build and sometimes landline phone.

Regards
Sheryn

PS google dividing fence act for your state and if neighbour is difficult try community mediation as free.

My real estate agent told me first up
 
Not dumb.

Of course people with young kids and dogs would want a fence or if you are near shops where people might take a short cut across your property.

Most tenants want...
Clean, neutral colour place with window covers eg blinds and security screen fly screens and security front door.
Airconditioner and good room lighting.
Heat lamp and fan (which they often don't use) in bathroom.
Easy to maintain yard generally with minimal mowing and no care gardens.
Off road parking at least.
Close to shops, transport, schools and out of flood.
TV connection if new build and sometimes landline phone.

Regards
Sheryn

PS google dividing fence act for your state and if neighbour is difficult try community mediation as free.

My real estate agent told me first up

I would think that the property has all of the things in that list minus the minimal mowing or fly screens - it's an 809m2 block with a handful of plants, mostly grass, similar size to many other blocks in the suburb.

The lack of a side fence is the feedback that keeps coming back, however! The neighbourhood is a grid layout, so noone would be shortcutting across the property.
 
A quick Reno .....

Inspired by stories on the forum of doing a " Quick Reno " to gain equity and increase rent , instead of buying the NTC property ( that my wife wanted ) we went for the tired property that needed a " quick Reno " .

When you're buying interstate , first IP , our experience is that quick reco's don't happen quickly . Can't remember exactly how long it took , but it was around three times longer than we'd been advised . In the mean time we'd also bought another IP that was rentable but would have also benefited from a quick Reno . Didn't do it and rented as is . Bottom of the market in logan , series of feral tenants . Had to claim on bond and insurance for damage and loss of rent on a couple of times . Ended up selling it after about 2-3 years. Purchase price was 65 k which was less than the previous owner had paid for it around ten years before. Sold it for around 145 k .

When we bought in rocky , the bottom of the market was around 60 k . We bought 7 properties around 80. All neat clean tidy needing no , or minimal work . Only problem we ever had in rocky was one tenant who was depressed and suicidal and wanted to break his lease so he could move back home. We let him...

The latest place we've bought needed some tidying up , and a paint but its about 2 k's from where we live , so easy to organise and monitor progress.

Cliff
 
"the lack of a side fence is going to put off a lot of potential tenants".

My latest buy had this problem.At some stage the dividing fence got taken down,and never replaced :eek: Didn't worry the sitting tenants,or the neighbors.The new tenants though had a dog,needed the fence.Lucky i had deducted the cost off the new fence from the asking price when we were negotiating as i knew the fence at some stage would need to be reinstated..
 
I've often heard experts often say that property investment is all about the numbers.

It's not.

On one of my properties, I sensed the previous owners mother, currently renting, was going to be a nightmare to evict for renovations.

I calculated how long it would take to evict her and deducted the rent and expenses from the offering price.

She was a nightmare to evict, though a nice, clean tenant. I 'evicted' her into another rental property and we have been the best of friend ever since.

Always try to identify as many possible issues as you can, and deduct the financial cost from the purchase price.

Is it all about numbers? Depending on how you look at it, yes it is :p
 
We advertised our place for rent saying that a fence would be installed - that way we started advertising right away. It only took a couple days to install and we were on a corner block so had to pay for the full fence $8k!!

The people who moved in had a small dog. We didnt have to put in a fence but wanted to for security and more appeal to tenants with pets, kids etc.
 
This is what I'm currently planning to do, and am looking to have the fence up within a week regardless of the neighbour.

Cover yourself by issuing a Notice to Fence and giving her two (or three?) quotes. You have then done what you need to to be able to ask her for the cost of half of the "normal" fence for the area.

Even if you never do ask for her half, you've done what you need to do in order to be able to ask.

Check the legislation to see what else you may need to do, but that is it (I think).

If you don't do the right things, you cannot ask her for half. Well... you can ask her but she has no obligation to pay it.
 
Cover yourself by issuing a Notice to Fence and giving her two (or three?) quotes. You have then done what you need to to be able to ask her for the cost of half of the "normal" fence for the area.

Even if you never do ask for her half, you've done what you need to do in order to be able to ask.

Check the legislation to see what else you may need to do, but that is it (I think).

If you don't do the right things, you cannot ask her for half. Well... you can ask her but she has no obligation to pay it.

The notice to fence has already been issued. The legislation, however, says the notice can be disregarded if one neighbour pays for the entire fence.

There seems to be some interest from the open just past, so hopefully some application prior to the fence going in.
 
The notice to fence has already been issued. The legislation, however, says the notice can be disregarded if one neighbour pays for the entire fence.

There seems to be some interest from the open just past, so hopefully some application prior to the fence going in.

Advising prospects that the fence is imminent?
 
So the fence is finally going in. The situation was exactly what I expected... neighbour can't afford a fence. At least they've conceded that one is going in anyway.
 
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