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What are my options?

Discussion in 'Real Estate' started by hitoriko, 20th Apr, 2011.

  1. hitoriko

    hitoriko New Member

    Joined:
    20th Apr, 2011
    Posts:
    1
    Location:
    Melbourne Outer West
    Hi all,

    what a great site i read a few threads andhopefully you can help me.

    So im 25 and have my first home, nothing special - 2bedroom, with ensuite bathrooms, seperate toilet and large open planned living and dining/kitchen area.

    I purchased in June 09 for 200k and due to work cutting my hours its beginning to be harder to pay for everything. I'm also recently married so im still paying off a wedding as well.

    All up not including the house i have about 50k in extra debt (car, personal loan, creadit cards etc..)

    Im considering renting my place and moving back with my parents (they ahve a a huge house so they are happy to have us back in which is lucky) now i know i can get around the 220 - 240pw rent.

    Now for my questions:

    is it better to go through a property management group OR should i become a land lord myself? i'm getting a landlord pack in the mail from a local estate agent but what i've been told is:

    Management fee is 7% plus GST
    1.1 weeks rental for Leasing fee to a new tenant
    $66 flat fee for releasing to initial tenant

    im new to all this, does this sound like a reasonable fee?

    My house needs minor repairs - (leak on the patio roof, porch needs replacing, some skirting boards need replacement, kitchen could use new cupboards and one bathroom could do with a refresh, a new a/c, the laundry needs new light fixtures and the backyard a general tidy up) and because i can't get a loan or anything but my wife can, if she gets the loan we do the repairs will i beable to claim that back on tax? what else will i be able to claim?

    when i was looking in the area to buy a place i went to a rental and half the rear weatherboards of the place were missing but it was still rented, is this legal?

    When it comes wo insurance what should i look for? im already going to insure it for 300k + contents 50k (blinds carpet etc..)


    ANY help would be fantastic! help me with my dream to get out of debt :)

    Hito
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Hito

    I think moving back with your parents is the best thing for you.
    Regarding managing the property yourself, don't even think about it.
    Let the agent handle it and you get on with your life.
    7% is reasonable.
    On insurance, don't overinsure, I don't see how the carpet and a few blinds and light fittings can be $50K
    but also get landlords insurance.
     
  3. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Bill gives you some good tips there and I'd second the PM stuff. Unless you're willing to educate yourself in this field, you're much better off hiring the experts to do the work for you. With the recent changes to the RTA it's also a minefield of information that you need to know.

    Shop around for a good PM- always negotiate their fees and read through the management agreement with a fine tooth comb.

    There's a list of questions that I ask every PM- check them out in the Articles section on this site. Best of luck :)