PPOR in Melb, retain as rentail - wife disagree's due to garden....

[Quantum Leap]

Hi There,

I have a PPOR in Ringwood North, VIC that we will be living in for the next five years at maximum (or less hopefully) with the view to upgrading to a bigger house as soon as we can. I beleive the freeway extension will lift values in the area and many buyers will place Ringwood into their consideration set, where previously they may not have.

I am quite keen on keeping this PPOR as an investment moving forward - the concept of selling up and paying all the stamp duties, etc does not appeal. Seems like dead money to me - better to just hold for the long term.

My wife disagree's with my strategy, she believes the garden is too hard to maintain as a rental and therefore we should just sell, so I am hoping to somehow bring her around.

I was thinking of just incorporating a gardener say once a fortnight or month into the rental. Does anyone do this currently? Would many tennant's be prepared to pay the premium?

Do any of the investors here have properties with reasonable gardens? If so, have you been able to find tenants that look after them?

Appreciate some thoughts on this one

Rgs

QL

 

[The Y-man]

A garden can always be "repaired" - as with any other part of the property.

I have seen leases including gardening, and at the last place I rented, the landlord would get desperate and send in a gardener on his own accord

As for selling - give consideration to your partner's idea. The prices may "spike" due to the freeway opening and then "die down" (after it loses its "novelty value"). It may be a CGT free way of making quick money.

Cheers,

The Y-man

 

[Twitch]

Hi and welcome Quantum.

I think a bigger issue is how you plan on structuring the purchase of your new PPOR, and how much equity you currently have in your current PPOR.

For example, it is very tax inefficient to have a fully paid off former PPOR (and now IP) and a lot of debt on the new PPOR, that alone could cost you well over $10,000/yr a.t. in lost tax benefit.

That cost of that is a lot more significant than the expense of garden maintenance which would only be ~$1,000/yr b.t.

By the way, there's no stamp duty on a property sale, but factor ~3% in commissions and selling expenses.

cheers

 

[simonjulie]

Hi Quantum
I have found that tenants although a generally nice folk, don't tend to look after gardens the way owners do. That in mind, as Y-man said gardens can be repaired. These days I tend to plant hardy native plants that can see their way through drought times more efficiently.
It's a funny thing, when showing a property for rent I find that prospective tenants seem to always remark on how great the garden looks so it can be a draw card but don't expect it to look that way a few months down the track.
Maybe a general clean up twice a year, Autum and Spring can often keep it in check.
I think it is also important to keep the gardens looking good for times when you want to refinance the property. I have a number of dual income properties and to save debate over responsibility for the front garden I maintain them myself to keep the street apeal up to a good standard.That also gives me an opportunity to keep an eye on the way the tenants are caring for my property.
Cheers
Simon

 

[Quantum Leap]

Gardens

Thanks everyone for your input - very much appreciated.

I think as I progress it will be worthwhile to do a few what if scenarios based on selling and based on holding.

I'm a big believer in holding property for considerable lengths of time and hopefully never selling.....that's the theory anyway.

Rgs

QL

 

[Goldminer]

Gardens????

Could always knock down the house and do a 2-3 townhouse develpment???
Drive thru Ringwood north daily on way home from work trying to avoid that bottlneck RINGWOOD. have noticed units and townhouses popping up in that area.

 

[sailor]

My vote goes for employing a regular gardener and including this cost in the rent. Infrequent ground maint is a pain in the proverbial and costs more than regular care.

My tenants have gardening included in their rent, and they always comment on how nice "their" garden looks....go figure! It doesn't stop them from planting their favourite herbs and flowers, but helps the property to retain its appeal and value. Also, when the garden looks nice, tenants tend to take more care of the property. Good tenants have pride too.