260 K for IP

If you do things properly and have a half decent Property Manager, you shouldn't have to factor in a 'tenant trashing' every few years, even in the depths of Woodridge. By the same token a tenant could trash your already tidy house within a few years and you're going to have to spend that money on it anyway.

You do make a good point about using the extra money for a deposit on the next property though, every dollar counts when you're aggressively purchasing, though there are finance options for more substantial renovations.

 

I cannot recall anyone using decking paint for internal.... Very uncommon. There are still confusion among users due to many variety products...

 

To get exact no:
13 Collin Ct, just next to 14 Collin, Rented for $ 320 after 70 days vacant. 14 Collin is better house than 13.

34 Antares- Rented for $295 after 2 months vacant.

When factor vacancy, expenses, Reno, finally the yield will be below 5%.

 

Hi Tom, definitely - a great property manager is crucial as part of maintaining the well being of the property and sourcing good tenants. Although even without a tenant trashing, fair wear and tear in my experience will reduce the value a new renovation noticeably in a matter of 3 - 5 years - especially floors and walls. The other point is that you will almost likely need to redo the renovation when you exit from the property in the future, so a lot of capital is doubled up.

If a tenant trashes any house, there could be a good chance it will be covered as malicious damage from your landlord insurance, from which you might get a bonus with a "free" reno!

The cost of doing renovations can make sense when you buy into more premium properties, as the cost of a reno itself is fairly constant - just that with the very low end of the market, you may well be overcapitalising for very little return - especially when you can buy ready-to-rent properties for not much more (if not the same price if you can find a great deal!). At some point you have to ask yourself - is the return worth the capital, time and potential headaches? Could I be using this capital as leverage onto something else or better returns?

 

Most of my houses I renovated to get better yield and better valuation. But your way of thinking give different perception. It looks not worth to do perfect Reno if plan to rent for next 5-10 yrs... Something to consider in future...

 

Regarding having a tenant in place. If there is a strong demand in the rental market, and a waiting list for properties getting a tenant should not be a problem. One place we are currently buying will be shown to prospective tenants with an occupation date on settlement. Yes, I will have to pay the listing fee, but you have to pay this every few years anyway and it really is worth while. Real estate agents work hard to get the right tenant in the property, it's worth the cost.
I actually prefer not having a tenant in place because you can make sure that it is all clean/tidy, look through the property properly and well... rental increases can only go up $5-$10 a lease agreement so in areas like Traralgon where there is strong rental demand, it means that often the renter currently occupying the property is paying below market price rent.

 

34 Antares if it rented for 295 a week, and the reno costs are lets say 20k it's $15,340 gross rent, purchase price with the reno is 215k that's a 7% yield with no vacancy. The house was purchased mid 2019 then renovated then they tried to resell it then they listed it for rent so it's pretty hard to say what the actual vacancy was especially seeing the second selling agent was the same agency doing the rental. They may have had a conditional sale contract from an owner occ and not put a tenant it there, who knows! RP Data/Pricefinder does not always tell the true story.

13 Colin Court rented in 7 days according to RP Data:

Listed for Rent at $330/W
7 days on market
Rented by Rentals Team of Rma Property Group - Brisbane

 

I agree. I think the price point is critical. I am not sure too many investors will buy a 300k house in Logan and spend 30k on a reno, I agree that does not make much sense for the average Logan rental. Buying a 200k house in Logan and spending 15-20k does make sense because you will bring the value of the house much closer to the median price and have a nice equity gain to refinace from, and most likely a great yield!

 

Horses for courses, last property I bought for $270k spent >$150k+ on renos

 

Hmmmmmmm

 

No one cares about fancy gross yield. What investor take home is a matter. Net yield should be less than 5%.

Around 2500$ council, $1000 for agent, over $2000 for vacancy every year. Another $300-$500 maintenance. So$6000 min cost. So net yield is 4-4.5% with almost negligible capital gain. 20k Reno is included.

Region is higher chance for bad tenant, then tenant damage is additional cost on top. Couldn’t see single point how these investments are even viable.

 

That's pretty tough if you run a airbnb and receive substantially more than that

 

10 Flinders Street, Logan Central, Qld 4114

9 Elm Avenue, Woodridge, Qld 4114

8 Elkhorn Street, Woodridge, Qld 4114

The land value = $225k

I dont invest in logan, but it may suit some investors (basic renovations with high yield)

 

10 Flinders would have to be around the $200k mark with no major structural issues to stack up, but there's a good chance that'll be what it goes for.

9 Elm has been hugely popular, I'm surprised they don't have it sold yet. Logan loves sheds! (and a very low list price, ha!).

8 Elkhorn looks tidy, assuming all the work has been done properly (nothing stands out badly in photos) you could do well paying around $300k for that.