Renting out ip on 800m2 block.

[Brian84]

Hi all,

When buying an investment property do tenants usually shy away from houses that have a big yard because its more maintenance or does it not matter. I was thinking if I bought a property on an 800m2 block that would be a fair bit of lawn to maintain.

I am a first time investor so still learning a bit.

 

[property_girl]

Hi Brian, in my experience tenants prefer mowing backyard lawn to maintaining a garden. Is there an established, well-kept garden in the backyard? If there is, and the tenants don't like gardening, my experience is that you can kiss the garden goodbye unless you are prepared to pay someone to maintain it. If it's just lawn, it's usually not difficult for the tenant to maintain it. If you have a managing agent, make sure they keep an eye on it.

 

[Biz]

I have an ip on an 820 block. Never had trouble renting it but the tenants have always done a poor job of maintaining it imo. Now developing it, cutting the block in half so should be less hassle for 2x sets of tenants.

 

[Brian84]

Thanks for the replies, the yard is pretty flat and only one tree out the back and a few trees and garden out the front.

Biz- I was thinking to get the bigger block for future sub division. The block is actually 880m2.

 

[Biz]

Biz- I was thinking to get the bigger block for future sub division. The block is actually 880m2.

Good, but if you do make sure it makes sense today rather than just some time in the future.

 

[Brian84]

Yes because I think this area is on the rise so in the future when the population increases than I will subdivide

 

[Biz]

Yes because I think this area is on the rise so in the future when the population increases than I will subdivide

You could do that or as i said buy something that stacks up now, do it and move ahead. Save the land banking for when you have a bit more under your belt.

Buying something with future potential is good but in the short to medium term it wont help you build your portfolio.

 

[Brian84]

Ahh ok sorry I didn't understand what you meant. Makes sense now. I'm just looking to see what would rent good and still have growth. I am going to try for the loan soon. I just wanted to see what you get for the price range I was thinking.

I have my ppor in prestons Sydney which I am hoping to use the equity for my deposit and purchase costs.

 

[wylie]

We have IPs on 900sqm and found over the years tenants avoid them as it is a LOT of mowing. So, we including the mowing in the rent. It costs me probably about $800 per year to have the lawns done which is less than two weeks' rent.

 

[Brian84]

Thanks for the reply wylie, I think I might get something easier to handle for my first ip. It's a bit of a risk for my first ip.

 

[balwoges]

We have IPs on 900sqm and found over the years tenants avoid them as it is a LOT of mowing. So, we including the mowing in the rent. It costs me probably about $800 per year to have the lawns done which is less than two weeks' rent.

Very sensible solution, its what I would do ... cost of lawn mowing would be tax deductible.