澳洲Australia property I just made $29,714 | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Well thats how i sort of see it. Property prices are supported by the rents they generate.

I increased the rent on two properties this week. One by $20 a week, the other by $10.

So to earn $1,560 ($30 x 52 weeks) a year interest you need to have $29,714 in the bank at the current of 5.25%.

Thats why i love property and the reason you should never sell.  

评论
love the different way of looking at it !

ta
rolf  

评论
Ummmmmm no.  

评论
Yep beautiful, isn't it?

Just raised rents on the following:

1. Deception Bay - $10
2. Hoppers Crossing - $15
3. Melton South - $10
4. Paralowie - $10
5. Parafield Gardens - $20
6. Meadowbank - $10
7. Werribee - $10

That is about $4,620 in rent increases in six months....and there are more properties to increase as tenants come off leases.

Will increase rents by this amount again in another six months. My positive cashflow is about a 2% CG to my portfolio every year. This is irregardless of what the market is doing.  

评论
Of course no mention of how much expenses went up :rolleyes:  

评论
My rents are going up by about 7%-20% per annum with an average increase of 8%

Overall my expenses went up by about 3-4%....that still leaves me a 4-5% real increase and with compounding the income side will still continue to grow. I am also renovating my properties at the rate of 2-3 years....but after tax deductions these also fall into 3-4% expense. Once done I won't have to renovate for another 7-10 years.

To put in perspective my rent roll 5 years ago was only 58k......now it is close to 200k....expenses are about 57k (not including IR).

I suspect I will hit about 350k in another 5 years.....

Piston Broke said: ↑
Of course no mention of how much expenses went up :rolleyes:Click to expand...
 

评论
toony said: ↑
Well thats how i sort of see it. Property prices are supported by the rents they generate.

I increased the rent on two properties this week. One by $20 a week, the other by $10.

So to earn $1,560 ($30 x 52 weeks) a year interest you need to have $29,714 in the bank at the current of 5.25%.

Thats why i love property and the reason you should never sell.Click to expand...
Great, not just do the same with a couple more properties and there's your deposit for your next purchase, or not...:confused:  

评论
We have just increased rents by $25k pa to take affect in Feb.

One comment so far, apart from the customary list of problems that weren't reported until now,;) quote "can we wait to pay the increase until June as rents were increased 6 months ago". Never mind that this only brings the rent just to market rent in this case.

Cheers  

评论
I would like to increase rents but I'm worried that the tenants will leave and look elsewhere and then I would be worse off.

Some Questions:
# How long after tenants move in would you increase rent? (Mine have been there for 8 months and the other 11 months).

# How often have tenants left after you increased rent?

# Would January be a good time to increase rent since it is after the Christmas period and there are more rental opportunities with people settling in for the new year?  

评论
HomeBuyAU said: ↑
I would like to increase rents but I'm worried that the tenants will leave and look elsewhere and then I would be worse off.

Some Questions:
# How long after tenants move in would you increase rent? (Mine have been there for 8 months and the other 11 months).

# How often have tenants left after you increased rent?

# Would January be a good time to increase rent since it is after the Christmas period and there are more rental opportunities with people settling in for the new year?Click to expand...

# Move it in line with market rents, regardless of how long they've been there...depends on the lease id say there's a good opportunity at the 6 month mark...12 months at the longest...

# n/a

# i'd rather increase rents during periods where there are less rental opportunities...less chance they'll be able to find somewhere else ;)  

评论
Piston Broke said: ↑
Of course no mention of how much expenses went up :rolleyes:Click to expand...
On a variable rate loan the cost of interest alone has increased 30-40% over the last 18 months...  

评论
Piston Broke said: ↑
Of course no mention of how much expenses went up :rolleyes:Click to expand...
Ain't that the truth! QFT!  

评论
greedy landlords.....:D

$10 & $20 is nothing if you consider how much more we're now paying in interest.......:eek:  

评论
toony said: ↑
Well thats how i sort of see it. Property prices are supported by the rents they generate.

I increased the rent on two properties this week. One by $20 a week, the other by $10.

So to earn $1,560 ($30 x 52 weeks) a year interest you need to have $29,714 in the bank at the current of 5.25%.

Thats why i love property and the reason you should never sell.Click to expand...
I would have thought that using the interest rate you are paying on your loan would give a better approximation of the capitalisation rate (after all, property investing is not risk free, so shouldn't be compared to a government guaranteed rate). You could then run the same calculation again and work out the change in value for each 25 basis interest rate rise when the rent does not change. I did a quick and dirty calculation for renting at $300 p.w. and an increase from 7.25% to 7.50% decreases your value by just under $7000.  

评论
HomeBuyAU said: ↑
Some Questions:
# How long after tenants move in would you increase rent? (Mine have been there for 8 months and the other 11 months).

# How often have tenants left after you increased rent?

# Would January be a good time to increase rent since it is after the Christmas period and there are more rental opportunities with people settling in for the new year?Click to expand...

1. every 12 months, so need to get your notices out now.

2. never

3. any time is a good time, remember you have to send your notices out in advance.  

评论
lizzie said: ↑
1. every 12 months, so need to get your notices out now.

2. never

3. any time is a good time, remember you have to send your notices out in advance.Click to expand...

thanks for the feedback. I will increase the rent in my two properties but I don't think it would be a good idea to send them a notice being so close to Christmas even though it would not engage until January. I think I will wait until mid January and send them a notice. It will be 1 year in mid Jan that my unit has been rented out by the former owner so a good time to put the rent up. This apartment would probably get another $30 a week if I spent a week painting the inside so I don't care too much if they leave. I will put that up to around $280 pw from $260.

The other house is in a small town 30 mins from Newcastle, the rent is probably getting more than I expected so I'm going to have to be careful with that one as it took 5 weeks to find a tenant for this place and these people are just getting by but plan to stay there long term.  

评论
BV said: ↑
greedy landlords.....:D

$10 & $20 is nothing if you consider how much more we're now paying in interest.......:eek:Click to expand...
Yes, but they are only holding costs. They rise and fall as interest rates rise and fall. Whats important to me is that the value of the properties rise. As rents rise so too does the underlying value of the property.  

评论
HomeBuyAU said: ↑
thanks for the feedback. I will increase the rent in my two properties but I don't think it would be a good idea to send them a notice being so close to Christmas even though it would not engage until January. I think I will wait until mid January and send them a notice. It will be 1 year in mid Jan that my unit has been rented out by the former owner so a good time to put the rent up. This apartment would probably get another $30 a week if I spent a week painting the inside so I don't care too much if they leave. I will put that up to around $280 pw from $260.Click to expand...
Wait till after XMAS because it is not a good idea, who cares what time of the year it is and anyway you may find this a useful read if you haven't already read it

http://www.tenants.org.au/publish/factsheet-04-rent-increases/index.php

60 days notice in NSW now so if you want it to align with them signing another 12 month contract you just missed the boat or get in tomorrow to say it will go up after month 2 of there new lease.

Jezza  

评论
I send the notice out as soon as they have been in a property for four months. That way the new increase coincides with their six month anniversary. I don't care what time of year it is, heck I get bills at Christmas and in January, so they can too. Many of mine have increases that are just coming on line right now and I sent the notice of increase to another just the other day.  

评论
I think in the case of people like Skater who have a few proerties then it's easier to take risks and put the rent up all the time. My problem at the moment is if a tenant moves out in one of my 2 properties then I could have to pay for that lost rent for a month or more and it's not what I would want at this stage when I'm trying to save a bit.

Going back to this tenant that was the previous owner who's 1 year lease will end in mid Jan, would I be able to have a new rent increase start from the end of the lease (mid Jan) if I notify them in next few days or would it start from 60 days from when I notify them of the increase?  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...