South Lakes WA, First development

Hey Rick. Property is 4x2 on 555sqm Built around 1987-90. 2 Large living rooms. Its got new carpet and tiling throughout. New curtains. Downlights installed in all rooms and Powerpoints/Switches changed over to give it a more modern feel. The kitchen is original but have repainted the cabinetry and put new handles on etc to make it look nicer. Bathrooms have had a bit of a clean up but no renovations done on them.

Most block sizes are around 750sqm in South Lake so I've lost a bit of value there but agents have told me they have sold run down 3x2's on 750sqm blocks for 455-470,000 and well maintained, renovated 4x2s built around the same time on 750sqm blocks can fetch up to 500,000

Even if the front house was to go for 460,000 i still think i could get 540,000 for the back house keeping it at 1mil.

Your around the corner in Atwell and used to live in South lake i think you once mentioned to me? do you think that value is not realistic? Im on the south side of berrigan and close to the new houses that are around that area and I'm also far enough away from the power lines that run through the suburb.

Speaking of South lake i also think its a area with good potential. MTR has mentioned that some of here purchases a bit north of South lake have been doing well (Kardinya, Willagee, Cooby) due to the new Hospital and Murdoch uni being close by. I also think South lake has caught a bit of this growth and theres heaps of development going on by the Cockburn train station and gateway shopping center that are starting to gentrify the area.

Sound good Blair. Great work.

I sold my 3 bedder ppor in South Lake back in 2003 for $185k. That was market value back then. The area looks to have moved ahead substantially in values since then. But then again that's why we invest in property isn't it and why my mantra is never never sell.

We have moved on from Atwell, fully exiting the rat race now residing in Victoria living the property dream.

Once again congrats on the property development.
 
We have moved on from Atwell, fully exiting the rat race now residing in Victoria living the property dream.

Oh, wanted to meet you one day, but now you have moved so far :(

Of course, you have shared a lot about your strategy. But it would be great to read more about the exit. Please share more details. (Or have you already posted about it somewhere?)
 
Oh, wanted to meet you one day, but now you have moved so far :(

Of course, you have shared a lot about your strategy. But it would be great to read more about the exit. Please share more details. (Or have you already posted about it somewhere?)

If you search Living on Equity (LOE) you see whole string of threads about it. There will also be lots of naysayers who say it cant be done. What they are really saying is they dont believe it can be done for them. Im living proof it can me done. I hope this helps.

Its not far....just your thinking makes it so for you :)

P.S Success is 80% mindset and 20% strategy. In other words How you think is four times more important than How you plan to do it.

Food for thought!
 
Hey

So i have Practical inspection booked in next week.

Im just thinking of things to check for and was wondering if anyone know what else i can add. i know the builders won't have to much concern to them after handover with stuff i didn't see during the inspection :)

-All lights, Sockets, Electrical equipment working
-A/C working
-Kitchen Equipment in good working condition
-Taps working, Hot/Cold in correct positions.
-Toilets/Showers
-Doors opening/closing okay including kitchen draws/bedroom wardrobes.
-Windows
-Painting condition
-Tiling/Flooring condition
-Paving conditon
-Check the ceiling space.
-Outdoor service units - switchboard etc
-Site has been left clean and tidy.

Thats most of the basics, anyone been through this before and know of stuff that i could forget to check?

cheers
 
Blair

Comprehensive list, not something I ever did, bit slack.

What about -
retic/is this part of the package??
garage remote controls

Just for your info even if you have an issue after the inspection we found the builders have always been reasonable and sorted it out, usually very minor stuff.

MTR
 
I'm this person at practical completion

cutcaster-photo-100586512-Fail-the-white-glove-test.jpg


Your list is good. I always find the paintwork needs attention

Take a roll of those red dots for the paintwork/items that need attention and stick one on every spot that you have an issue with. Then take a photo of each room once it has measles so you can check again once the work has been done.

The paint/plaster bugbear I see the most is bad plaster join to window frame and poor painting on the lintel at the top of the window. It's the hardest thing to paint and if they don't do it well it looks crap.

If you have window treatments installed this will mask much of these issues so open/raise them to check properly

With plumbing check that items can run simultaneously, so turn on shower and basin. Let taps run for a good 5mins to check drainage issues.

Check that the retic isn't buried under the roll on lawn (yes this has happened)

Check basins, troughs, sinks have been siliconed or clipped in.

Take electrical diagram with you and double check all the points are there and on the walls they should be
 
I'm this person at practical completion

cutcaster-photo-100586512-Fail-the-white-glove-test.jpg


Your list is good. I always find the paintwork needs attention

Take a roll of those red dots for the paintwork/items that need attention and stick one on every spot that you have an issue with. Then take a photo of each room once it has measles so you can check again once the work has been done.

The paint/plaster bugbear I see the most is bad plaster join to window frame and poor painting on the lintel at the top of the window. It's the hardest thing to paint and if they don't do it well it looks crap.

If you have window treatments installed this will mask much of these issues so open/raise them to check properly

With plumbing check that items can run simultaneously, so turn on shower and basin. Let taps run for a good 5mins to check drainage issues.

Check that the retic isn't buried under the roll on lawn (yes this has happened)

Check basins, troughs, sinks have been siliconed or clipped in.

Take electrical diagram with you and double check all the points are there and on the walls they should be

Hahaha your picture made me laugh. Thanks for the tips with the paint/plumbing/electrical, ill make sure i do them all

Blair

Comprehensive list, not something I ever did, bit slack.

What about -
retic/is this part of the package??
garage remote controls

Just for your info even if you have an issue after the inspection we found the builders have always been reasonable and sorted it out, usually very minor stuff.

MTR

Yeh they did say they are pretty good with fixing issues, but of course they are going to say that :p its ventura I'm building with and most people seem to have positives to say about them so i don't think ill have any problems
 
Hey guys just an update on the project.

practical inspection went well, not too many issues and all resolved quickly.

I got the handover early december and wanted to get the place rented before christmas break.

originally when Perth was booming and rents were on the up i projected i would get 500 per week for the property. by the time the build was completed the market had cooled a bit and i expect market rent to be about 480. I was keeping track of other listings on the net and noted that similar properties were renting for around that mark but taking a few weeks to get tenanted so i dropped my asking rent to 465per week. It got picked up within the week and the tenants seem great, I'm living in the house in front and they look like they are keeping the place clean and tidy :)

I might have been able to hold out and get a bit more rent for the property but my main focus was to get the place rented before christmas because if it didn't i could probably expect a couple more weeks vacancy.

got a depreciation report back from scott/depreciator a few weeks back, its my first one - didn't realise how much of a bonus that was for tax time :)

my next project is going well (4 townhouses in northern melbourne suburbs), theres been a few delays with getting permits but almost there. was lucky to have a 6 month settlement so that holding costs haven't added up to too much extra. plans are to get this one done and in the mean time keep making the most of a decent salary to have the portfolio in a neutral cash-flow position by the time the melbourne project is complete and rented (hopefully this time next year).
 
Good work and thanks for the update.

Question around the new tenants, were they aware that you are going to be living in the property at the front? Was this disclosed beforehand?
 
Good work and thanks for the update.

Question around the new tenants, were they aware that you are going to be living in the property at the front? Was this disclosed beforehand?

Hey brady.

Ive got a property manager looking after it, i may have managed it myself but im doing fifo so its a bit difficult if theres ever an urgent issue. The pm has not told them i own the property an
d i think it will be easier to keep it that way, im sure one of the neighbours will let it slip eventually though =)
 
Hey brady.

Ive got a property manager looking after it, i may have managed it myself but im doing fifo so its a bit difficult if theres ever an urgent issue. The pm has not told them i own the property an
d i think it will be easier to keep it that way, im sure one of the neighbours will let it slip eventually though =)

Good option, I think if I went to look at a property and knew that the landlord was next door I would be somewhat put off. But after being in the property and neighbour/landlord isn't annoying wouldn't have an issue.

Believe the key is that a PM is managing the property.
 
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