澳洲Australia property Hot Rental market - paint later ? | Sydne
在澳大利亚 Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit
We have a nice "problem" We went unconditional on a 3 bed rental in a country town last Friday - we settle in a couple of weeks. The house is 50's, sound but original decor with a heavy smoker which has caused all the walls & ceiling to go th well known colour - nicotine yellow.
we had planned to spend $1500 on paint and draps, take a couple of days off work this w/end to paint out the inside - it will look $1M with original unpainted but varnished joinary.
- the painting is done (neither of us acutally enjoy DYI) ; the proeprty will be huge demand and look really good
-we get top $$ - maybe $170 , very nice yield thankyou
- we woudl really like the weekend off (we are very busy at the moment - wasnt really on planning on buying this month - it just kinda happened)
- we spend $1500 on matierals - borrowed at 7% for 6months
HOWEVER my PM (who has not been inside the property) has had some tenants drive past (who have also not seen inside the property - and they want to rent it preferably - this week The rental market at the moment is so hot at the moment that my PM (one of 2 in town) has no rental listings currently !! She has indiciated to the tenants that the rent may be $150. In the current state of decor I think this is probably reasonable - we would hope for $160 - $170 post painting.
- get weekend off - still talking to partner next week (important as we are busy been competition dancers - which is hard when you are yelling at each other)
- even at $150 pw , with known expenses we are CF +ve (pre tax)
- We loose $270 tp $540 in potential lost rent - more if the tenants stay longer (I dont htink they will - they are ex-ownser so presumably will buy again)
My dilemma is - rent now and loose the extra $ 10 - $20 pw - for say 6 months - until the tenants move on, or stay with plan A - take the time off work and paint like crazy .
I think under NZ law that we can kick out the tenants after the fixed term expires if we want to - will check this with PM
At the moment I am tending towards just getting someone in there covering the expenses. Is there a downside - apart from the obvious loss of the extra rent ?
Also does anyone know of any pitfalls of renting a place one doesnt actually own. The house is currently vacant - the owner is elderly & has gone to live with a daughter. I was thinking that basically we wirte him a cheque for the rent the tenants pay for the week or so he will own it and do it that way ? I realise that we will need to have our insurance in place in this case but is there anything else we shoudl ocnside?
I would probably get the prospective tenants in to have a look first. If they haven't seen the inside yet they may not want it. If they like it, take them, and get say a six month tenancy, then paint the house when you've got time.
I'd say you'd be pushing it paint the whole inside of the house in a weekend. You'll have to wash all the walls and ceilings with sugar soap before you can even start painting, otherwise the paint might flake off. Also if you use ceiling white and acrylic undercoat the nicotine stains will bleed through and look horrible and then you'll have to do it all again. Use alkyd flat paint (oil based flat paint) (Resene do one) over everything before you do your top coats and then you'll have no bleeding. Will also stop bleeding through of any patterned wallpaper if you're painting over that. Use acrylic over the top.
One approach is to get access to the property before settlement. If it's only paint, you might not need too much time.
It may be worthwhile extra to get professionas to paint (before or after settlement) to give yourselves quaility time.
But get the opinion of a few PMs before letting it out "substandard". I'd be realy surprised if you could not get a higher rent by making it better.
But even if you could not get a higher rent, consider the valuation- which can help you to move onto another property. Get RE agent opinions on prices- before and after painting. $3K of paint (not sure of NZ prices or property size) could add double (or more) when revaluing.