Came across this property this morning and was thinking it was listed too cheap. It has had over 3000 page visits!!! http://www.realestate.com.au/property-house-wa-ashfield-404376885
Your property has been listed for rent too cheaply when you have over 3000 views
- Thread starter INVSTOR
- Start date
I see it everyday
at lease this one has decent marketing photos
at lease this one has decent marketing photos
Someone has spent a LOT of time and effort and money renovating that.
To then ask a piddly 18K pa is simply a true reflection of the madness of that particular "market".
With large outgoing costs, along with the risk of damage and the very weighty and onerous obligations regarding health and safety and building code adherence, that lowly rental is simply not enough compensation to be a reasonable return.
Hmmm, and I'd suggest a piddly 19K pa is also nowhere near what it would cost to provide that level of product.
The Owner is taking a big bath, even if the labour cost to renovate to that standard was free by the Owner....which it nearly always is.
To then ask a piddly 18K pa is simply a true reflection of the madness of that particular "market".
With large outgoing costs, along with the risk of damage and the very weighty and onerous obligations regarding health and safety and building code adherence, that lowly rental is simply not enough compensation to be a reasonable return.
Hmmm, and I'd suggest a piddly 19K pa is also nowhere near what it would cost to provide that level of product.
The Owner is taking a big bath, even if the labour cost to renovate to that standard was free by the Owner....which it nearly always is.
LOL!
yeh, first 2 - 3 weeks rent goes towards the letting fee, then a bit more to pay for the agents GST on top. and a bit more to pay for an inspection, $10 for a postage stamp, then the actual PM fee. then a month for the council rates, then a month for the water rates. then the toilet gets blocked. then, gees it's getting warm - would the owner consider installing a $3000 air con? and the clock on the oven is on the blink, can we get a sparky out immediately please?
hello? is anyone home? oh, looks like they have done a runner and trashed the joint. and whose dog is that?? oh well, let's spend 2 weeks cleaning up and try it all again
Ausprop,
it already has an air con..
sounds cheap to me too, maybe Ashfield is out in the sticks....
Wherever it is a $20 difference appears to make all the difference to the tenants there
.They'd be peeved if you put the rent up 6 months later
.i told my 20 friends about the reno i did, they forwarded to 4 more friends. 20*4= 80 views. 80 people then told 3 friends about it.
80 + (80*3) = 360
360 told 2 people about the great reno = 720 +360 = 1080
1080 peopl told friends about a reno =1080+1080= 2160
add the rental gossip and the figure you state is not at all unusual.
YEah I reckon most properties stick around for 3000+ vioews in realestate.conm.. I'd suggest 3000+ views is not a "good" sign, but I never thought of it as too cheap... I thought a too cheap rental would get snapped up quickly.....
Yep, and what Ausprop said, you'd probably be better off letting it sit there without a tenant.
All the others have 300+ views!
Ausprop,
it already has an air con..
sounds cheap to me too, maybe Ashfield is out in the sticks....
It's 9 k's from the city in Perth. 15mins to airport, 20mins to city.
Wherever it is a $20 difference appears to make all the difference to the tenants there
They'd be peeved if you put the rent up 6 months later
It's not available until the end of the month so I think people looking would only start looking now or even a week or two later. To me it looks like what properties would rent for 2-3 years ago.
Ouch, that is a bit close to the bone.....hahahaha.....
Short answer - yes. Useful answer - see below. Happy to disclose, I couldn't give a rats.
The Tenants left in January. They were paying $ 820 per week for the past 2 years.
We tried to re-let it out again at $ 820 pw ourselves. Place worth 1.35m. Gross yield of 3.1%. Nett yield of 2.3%....yep, Land Tax bill is substantial. Our smallest property...care factor zero really...bigger fish to fry.
Started advertising mid December, as soon as the Tenants gave their 21 day notice to not renew.
Not a sniff....that's OK, no panic necessary, it's the peak January period.....something will turn up. Not a sausage.
Gave it to a local agent in February. They reckon it's not worth what we are asking....the "market" simply won't pay that rent. A well kept 4x2 brick and tile home, 5km from the CBD is apparently not worth a cracker to Tenants.
Agreed to drop the asking rental to $ 750 pw for all of Feb. 'Peak' season now over. Not a sniff. Not a sausage. Not even one offer to consider.
Sacked agent and gave it to another REA, one go-getter who attended investor evenings all the time and has been trying to secure my PM business for the past 6 years.
Further two weeks go by, still not a cracker. Agreed to drop the asking rental to $ 700 pw for the remainder of March and most of April. Given feedback on all of his latest feedback forms.....how many people have clicked on the website, how many people have requested more information, how many people have downloaded photos, how many people have.....what a crock of **** !!!!!
How many people have filled in application forms ?? Ahhh - nil.
Sacked agent, went back to original agent. Another 6 weeks go by. Place still looking immaculate. I simply adore dragging my lawn mower around there to prepare the place before a Saturday morning opening.....amongst doing about 6 or 7 other things that a lawn mowing contractor won't do.
Finally in mid-May, a full 4 months after the Tenants left, we finally received an application at the lowest $ 700 per week (2.7% gross yield or 1.9% nett yield) from a female Doctor and her unemployed husband......but this wasn't any ordinary application.....this was from the demand queen from hell.
"We will rent your house under the following conditions ;
- Owner to provide full gardening services as part of the rent
- Owner to build a brick rear shed for the Tenants use
- Owner to replace the slate to floorboards within 3 months
- Owner to build a lock up garage
Bwwahahahaha.....I nearly fell off my chair laughing as I read this application. The cost of the demands list alone would have wiped out the rental for the next 18 months, not to mention the ongoing headaches of wiping their noses at every step.
They were looking for a typical residential investor to grind into the cashflow floor....they found me instead !!!
The Agent excitedly called me up about 2 hours after forwarding their signed application simply saying, "We've finally done it, a Doctor no less, say the word and we'll take care of the rest."
I said No. She went off the handle...."we've worked so hard for you, it's a renter's market, you're in no position to refuse this wonderful offer, how dare you insult us by not accepting the offer, I'm highly disappointed in your attitude." The answer was unchanged - no - tell the good Doctor my answer is No and her application has been rejected.
Had a bit of chat with the wife. If that was the rental market, I didn't want any part of it. She reluctantly agreed to put it up for sale.
Apparently it's a Buyers market !!! Over the course of the next 4 months, we tried to get any offers. Every neighbour came through the joint for a sticky. Not one written offer - nothing. One guy cheekily gave a verbal offer to the Agent of 900K unconditional cash. Thanks but no thanks, we aren't that desparate.
Sat with the accountant and calculated it would cost 160K in CGT to offload (5 years worth of rent). Hmmm. No thanks.
Every which way we turn, this supposed 'asset' produces a very ugly result.
Meanwhile, did a very cosy leasing deal with a large company to occupy our rusty shed, just the land mind you, they are responsible for the building for $ 4,200 pw for the next 8 years, alternating ratcheting up the rent by either 5% or 15%. This is what I concentrate on.
So, the house sits there still - empty. I treat it like an empty block now. The $ 700 pw is irrelevantly small. The huge upside for me is that I don't have to deal with the Tenant's whinging.
I refuse to bow to the residential renters low conditions. I refuse to acknowledge the pathetic laws under the RTA, and I refuse to accept the onerous risks of being a residential Landlord for sub 2% nett yields.
Wife took an enquiry 3 weeks ago from a group of 4 English backpackers. No references, no jobs....with a sideways comment "this would be a wicked place for parties". They instantly got rejected.
I've mopped up too many feral wrecks in my time Ausprop to want to play that game again. If we don't learn over the years and grow wiser, then what is the point ??
Sorry for the long post....but since you asked.
And surely one of the annoying things Dazzz woud have been the agent telling you what she told you in the context of her being a professional he's a property manager you know) and that she knows the market, whilst you.. well you're just an owner who probably has no experience really aren't you ...
Who asks for a brick lockup garage & shed to be built ? and change of flooring when it's not damaged or anything ?
Surely it's easier to look for a differnt place that suits your needs that to impose that much on a deal ?
Reminded me of being in Bali and getting chatting with some NZ guys on a day trip... both had copy swiss watches on and I aked what they paid for them.. they knew I'd jsut arrived and told me they'd school me on the way things worked.. what do you think they offered me this watch for ? 900,000 rupiah (which must have been nearly $200).. how much do you think I bought it for, what would you offer them ? I said I don't know, but 900,00 is just way too high..... he said "I paid 90,000" and continued to tell me how he beat them at their own game of bargaining sounding like he got revenge
All I could think of was how hard it sounded to hound someone to give you 90% off their first price, if it sounds that unfair to me I'd rather walk away...
Who asks for a brick lockup garage & shed to be built ? and change of flooring when it's not damaged or anything ?
Surely it's easier to look for a differnt place that suits your needs that to impose that much on a deal ?
Reminded me of being in Bali and getting chatting with some NZ guys on a day trip... both had copy swiss watches on and I aked what they paid for them.. they knew I'd jsut arrived and told me they'd school me on the way things worked.. what do you think they offered me this watch for ? 900,000 rupiah (which must have been nearly $200).. how much do you think I bought it for, what would you offer them ? I said I don't know, but 900,00 is just way too high..... he said "I paid 90,000" and continued to tell me how he beat them at their own game of bargaining sounding like he got revenge
All I could think of was how hard it sounded to hound someone to give you 90% off their first price, if it sounds that unfair to me I'd rather walk away...
