zaph

Zaph's real estate adventures

283 posts in this topic

I haven't been following RE prices in the area but I reckon they've jumped another 10%. So 20% increase in five years. I'm rich! Where's my doubling every 7-10 years? 2-5 years and it will happen. 

 

Oh ye of little faith! The next 2 years will bring the next 80% price increase, of course!

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Oh ye of little faith! The next 2 years will bring the next 80% price increase, of course!

Left, right, testicles, spectacles. I hope so, I'm thinking of downsizing so that would be great for me. 

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There's a house near me that's been empty and up for rent since before xmass.

It's not a bad place, well priced, but...

  • It's the corner of a main-ish road - not a truck route, only busy in peak, one lane each way. Front of house is on side rd and has high fencing all round.
  • The grass is knee high and the place is poorly presented on REA.
  • Out of area agent who doesn't return calls and no OFIs
  • Purfect for a dog. Dog renters have trouble finding somewhere and often have to accept less than ideal. NO PETS. If they allowed a dog it would negate the main rd thing. 

Why don't owners start to question why their place isn't renting and get rid of useless agents?

There's another one for rent where all the pics are upside down.

Why don't LLs check their listing?

 

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On 26/02/2017 at 0:02 PM, zaph said:

There's a house near me that's been empty and up for rent since before xmass.

There's another one for rent where all the pics are upside down.

1

First house rented a couple of weeks ago. So only vacant for a couple of months.

Second place still has a for rent sign out the front but has been taken down from REA.com. No sign of occupants. 

New listing on the same main-ish road, next corner up. Looking old and sad, poorly presented and hasn't been renovated since the bronze age. Lists rooms as bedrooms that are not legally bedrooms as not legal height. Asking rent consistent with a place renovated some time in the last decade, legal bedrooms and not on a main rd. I'd go to the open, but of course, there isn't one! Tell em their dreamin. "Renovated bathrooms for both upstair and downstair which is comfortable for duel living" - I'm not sure what is comfortable about duel living. "Solar panel contributes to electricity cost" - I thought solar panel were meant to reduce electricity cost not contribute to it. 

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The amount of NG fraud must be adding up.  There are houses in my area advertised for rent for 6+ months.  No reduction in ask price, but why would you care in a 20% pa increase festival of toilet appreciation?   But my point here is I'll bet they take these windfall profits and still expect to be able to reduce their taxes.   It is an incredible time.

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39 minutes ago, Dose said:

The amount of NG fraud must be adding up.  There are houses in my area advertised for rent for 6+ months.  No reduction in ask price, but why would you care in a 20% pa increase festival of toilet appreciation?   But my point here is I'll bet they take these windfall profits and still expect to be able to reduce their taxes.   It is an incredible time.

 

In my area and the cases I've listed, I don't think it's really NG fraud. Just incompetent LLs and agents. 

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I'm currently house-sitting my parent's place. Which is more looking after a naughty bird and a cat so fat it can hardly move.

There's a place for rent up the road, 650pw, which I think is not bad for McMansion ville. It's advertised as seven bedrooms. I've been inside - if you count the study its five. Apparently, it has a large covered outdoor entertaining area. I've been over with my microscope and the only area that could possibly be considered an outdoor entertaining area is the portico. 

It has an ensuit. I think the leaving room is a feature. I like the idea of a leaving room...

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On my wage, rent of $650 per week ($34,000 per year) would leave me with only $400 to live on per week.

Thankfully my wife and I no longer have any children at home, so we don't need 5 bedrooms and our food bill is a little more reasonable lately, although it's normal for us to spend about $200 per week on groceries. If I throw in a carton, or a few bottles of wine, it can get close to $250. Fuel usually averages $50 per week. That leaves just $100 for all the other expenses. So I struggle to see how an average family with 2 or 3 children could afford that, even if both parents were working. And yet here's the thing I discovered having 5 children of my own. We coped quite ok with 3 bedroom homes. 3 kids to a room and bunk beds, seem to have gone out of favour with the modern generation. I guess, if they wanted to rent for that amount, it would just mean cutting down on/or out of; Private School Fees, Childcare, Private Health Insurance, Comprehensive Car Insurance, Netflix, Foxtel, Internet Service Provider (NBN??), Two Vehicle Registration, Electricity, etc.

(I'm a little out of touch, so I don't know what else the modern family pays for)

Call me old fashioned, (yeah, I know!) but I still think that's an exorbitant rent.

Edited by Solomon

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3 hours ago, Solomon said:

So I struggle to see how an average family with 2 or 3 children could afford that, even if both parents were working.

 

It's an above average home in an above average area, so it's not really fair to assume it should be available to an average family.

Quote

 

(I'm a little out of touch, so I don't know what else the modern family pays for)

Call me old fashioned, (yeah, I know!) but I still think that's an exorbitant rent.

 

 

If your kids are adults then you're probably not familiar with the rivers of gold that are family tax benefits. With five kids these days you'd be getting close to a grand a week in welfare. Maybe more - you need a doctorate to work it - a simple look at the Centrelink site is not clear. 

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On 2017-4-2 at 0:26 AM, zaph said:

New listing on the same main-ish road, next corner up. Looking old and sad, poorly presented and hasn't been renovated since the bronze age. Lists rooms as bedrooms that are not legally bedrooms as not legal height. Asking rent consistent with a place renovated some time in the last decade, legal bedrooms and not on a main rd. I'd go to the open, but of course, there isn't one! Tell em their dreamin. "Renovated bathrooms for both upstair and downstair which is comfortable for duel living" - I'm not sure what is comfortable about duel living. "Solar panel contributes to electricity cost" - I thought solar panel were meant to reduce electricity cost not contribute to it. 

2

Still listed on REA, but not on one of my regular walks so not sure if it's still available or the lazy ass agent hasn't taken down the listing. 

A couple of new rental listings that have been up for several weeks:

4bed, 1 bath, 4 car (if you count the dodgy sail area outside the garage as a twin carpark). 420pw. Renovated kitchen, pool, bathroom 70's original. Well presented. Guess what? - no inspections. Vacant for weeks - address on application if you want to squat. 

3,1,1 400pw. No opens. Vacant for a couple of weeks, but the listing says available 31/5.

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I've read it all. According to a real estate agent properties on main roads are very desirable and sell for a premium - article in the local rag. 

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On 29/05/2017 at 10:07 AM, zaph said:

3,1,1 400pw. No opens. Vacant for a couple of weeks, but the listing says available 31/5.

 

12 weeks and still nothing. 

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On 17/08/2017 at 10:11 AM, zaph said:

12 weeks and still nothing. 

Can't rent it for 4 months? Change agents and put the asking rent up $10pw!!

At least the new agent is doing opens - for 10 mins.

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On 13/09/2017 at 10:13 AM, zaph said:

Can't rent it for 4 months? Change agents and put the asking rent up $10pw!!

At least the new agent is doing opens - for 10 mins.

Now rented. What a difference a new agent makes. These LLs must be stupid to stick with a losing agent for so long.

There's a place almost across the road that's been for rent for a couple of weeks through http://australianresidential.com.au/. They seem like a property spruik rather than managing agents. The board out the front now has a paper over it obscuring the agents details with just a mobile number. At least they've dropped the asking rent from $470 to 450 and doing opens. I suspect they will need to drop again to get a tenant.

I don't understand why agents/LLs ask above market rent to leave the place vacant. On a $520pw place each week it's unrented could be a $20pw reduction to get tenants immediately on a six-month lease. 

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Listening to the radio in the car. So missed who it was...

"There are two parts to returns on property. Capital gain and rent. Rent is important. That's why you never ever put the rent down." This woman is insane. Never ever?

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On 07/10/2017 at 8:40 PM, Dose said:

I'm always confused by LLs who think they set the market, on rents.   Crazy days.

If you can, and want to leave a place vacant then ok. Just don't ask for govt handouts - which they always get in the way of tax deductions.

The joint across the street has had an Audi or Merc out the front for a couple of days. I reckon it's rented. It's fairly typical of rental occupants to have better cars than owner occupants. 

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My old dig is up for rent: https://www.realestate.com.au/property-unit-vic-ashburton-422964814

I was paying 365/week mid-last year. Owners renovated and sold the place; passed in at auction with asking price of 850k, sold for 800k. (houses on a full block go for 1.5+m)

Now being advertised for 500/week The place is a tarted up dump, massive mould issues, poor insulation. I never realised how bad it was until I moved out, I reckon I'm saving several thousand dollars a year in energy and water costs.

Will be interesting to see how long it is on the market before rented... not sure how long it has been on the market so far.

 

 

 

 

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On 10/02/2018 at 6:00 AM, Mr Medved said:

My old dig is up for rent: https://www.realestate.com.au/property-unit-vic-ashburton-422964814

I was paying 365/week mid-last year. Owners renovated and sold the place; passed in at auction with asking price of 850k, sold for 800k. (houses on a full block go for 1.5+m)

Now being advertised for 500/week The place is a tarted up dump, massive mould issues, poor insulation. I never realised how bad it was until I moved out, I reckon I'm saving several thousand dollars a year in energy and water costs.

Will be interesting to see how long it is on the market before rented... not sure how long it has been on the market so far.

Do let us know how long it takes to rent.

Do you think 500 is market rent in it's renovated condition? When you were renting it do you think you were paying market rent?

 

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6 hours ago, zaph said:

Do let us know how long it takes to rent.

Do you think 500 is market rent in it's renovated condition? When you were renting it do you think you were paying market rent?

 

Dumps generally go for 330-400/week but sometimes you get 3 rooms not 2.

500/week is not out of the ordinary, I pay 460/week for a 2BR apartment. But man those utility invoices were frick'n awful! At the moment it's hard to get anything in the neighbourhood under 500/week without being a complete sh*thole.

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On 20/09/2016 at 6:48 PM, AndersB said:

 

Oh ye of little faith! The next 2 years will bring the next 80% price increase, of course!

I've decided to downgrade (downgrade is a swear word in RE - it's downsize!). I no longer want a big 4 bed, 2 bath, 2 living home and I'm sick of dealing with boarders. I'm moving to a bedsit in Santiago de Cuba; or Inala, I haven't decided yet.

I had four sets of agents around to pitch:

  • A newbie guy (Tony) who happened to knock on my door at the right time. Ray White. I think Tony almost came when I said, yes, I will be selling come in and come back and pitch. Tony came round with his boss to pitch. The boss did all the talking, which I didn't like as it was Tony's gig. I didn't like either of them and both spoke sub standard English. $750-850k. 
  • An agent from a tiny agency that my neighbour sent around. He was probably the least real estate agent like of all of them. But decided that if you are hiring a crook you need a crook. Small agency turned me way off too. At least $850k.
  • A Hooker. The star agent for the area. I've met her a lot as a buyer, and as a buyer was impressed. Not impressed with her selling to vendor skills. Generally irritated me. Gave factually incorrect information. English passable. Would not give an estimate of sales price at all.
  • A couple from the RW office of Tony who must have heard about my interest in selling at the water cooler. Turned up unannounced. A French Canadian/Indian/Australian guy and a Chinese Oz gal. He spoke perfect English and Punjabi (so my boarders told me). She speaks acceptable English and Chinese. It's unethical that they steal a listing from colleagues - but that's exactly what you want in an agent when selling. I'm going with this pair. $740-770k

Footnotes:

  • I live in Sunnybank. China central. There have been a lot of Indians 'swamping' the area in the last few years - although they mostly seem to be renters.
  • All recommended an auction. Of course they would - it's the fastest way to sell a property and coerce the vendor into accepting a lower price.
  • All commented about a seperate toilet. It seems a separate toilet is important for Chineses. 
  • I bought the place 7 years ago for $475k. I estimate it will sell for $700k +/- tip. 

 

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Ahhh! Real estate, the joy of the masses. The wonderful little boxes of wood, steel, concrete and paint that just go up and up and up in value. And the lecherous creatures that it attracts with its promise of multi-millionaire status in just a few short years.

Thanks for sharing your personal story zaph. $225,000 capital gain in 7 yrs. That's a pretty good investment zaph if you get the price you are after. It takes me five years to earn (gross) that amount of money. And when I think about all the work and time I've had to put in to get it, I can see, I should have just bought a wooden box.

Did you do any improvements to the property, or is that all based on land/house value increase?

All the very best to you on your intended sale.

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Good luck with the sale. Not something I envy even with a capital gain, seems like a pain in the butt.

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