Thomastown - new PM or hang in there?

[Mikeyman123]

Hi guys,

Few months ago I purchased a 2 BR house on an ~800 square meter block in Thomastown, Melbourne (500 meters from the station). The property settled in June, and came with a tenant family that had been living there for over 4 years which was fine as I wanted to keep them on..

Long story short, their July rental payment was late in June. I chased up with the PM who was told they are vacating end of July and will return the keys + pay back outstanding monies of a month and a bit. In the end, they bailed but I managed to claim the bond, which was partially used to clean up the place, paint and repair other nits whilst trying to get it back on to the rental market.

It has been on the rental market for a few weeks now and according to my property manager, it is fairly ?quiet? even for his other open houses.

I?ve practically been doing his work by taking photos, updating description and organizing quotes to repaint and fix up the house.

Ultimately, I wish to obtain plans and permits and sell to a developer but in the short term, will need to get cash flow coming in.

I?m not sure whether I should believe what he says about the current market, or should I look for another more proactive PM.. rental price is set at market..

Regards
Mikeyman123

 

[Mindmaster]

800m2 block 500m from the trainstaion!?! Why not develop it and build 4 units???

I'm going to be looking for the exact type of block you have a month or so to develop. Can't imagine you'd be getting much value rent wise for a 2 bedder and developing would make a very nice profit for you.

 

[The Y-man]

I?m not sure whether I should believe what he says about the current market, or should I look for another more proactive PM.. rental price is set at market..

Regards
Mikeyman123

Our IP just up the road from you in Lalor seemed to rent pretty fast (couple of weeks?).

The Y-man

 

[Bandita]

Hi
I?m not sure whether I should believe what he says about the current market, or should I look for another more proactive PM.. rental price is set at market..

Which PM are you using?

 

[Mikeyman123]

I've got no expertise or experience in developing, and pretty stretched with financing it at this point in time. Figured I can create value by obtaining plans, hold and then sell it to someone else later down the track.

The issue I think is that it's a 2 bedroom (although 2nd one is quite large), old weatherboard house with a large backyard, which I don't think prospective tenants will pay too much extra for..

Prefer not to name the PM but they have a large amount of listings in the area covered by the Thomastown and Epping offices..

 

[Truly Exotic]

800m2 block 500m from the trainstaion!?! Why not develop it and build 4 units???

I'm going to be looking for the exact type of block you have a month or so to develop. Can't imagine you'd be getting much value rent wise for a 2 bedder and developing would make a very nice profit for you.

The problem is unless you are an builder or have ridiculously good contacts, none of the projects in the area are making financial sense to build

Ive seen some two bar brand new town houses go for 319k