anybody sold the property because

just too much issues/repairs with ip?
although you know it would perform well in next few years...
I got an interstate ip with too much issues- 7-8 repairs in last 8 months (4 are major) - every few weeks I got calls from PM. Last issue involved tenants (dont want to say any on public forum) and I am losing it... stressful and busy enough already at day job

 

Got one of those. But the rent comes in on time every week...

 

Owning a house, an IP or having kids comes with ups and downs. Plan and manage it.
A medium / long term maintenance plan may be needed if its a defect ridden problem. Better purchase review and inspectiosn might assist reduce a future pruchase with same issues,

Selling it and buying back in will cost $50k+ so think carefully

LL insurance ??

 

I empathize, if you haven't bought something with good growth, like Sydney, sometimes it feels like everyone else is making the money but you, out of you, banks, pm, Tradies, insurance, rates etc etc etc

 

Hang in there if the upside is worth it...i had spoilt heavy-handed tenants breaking stuff every few weeks in my brissy house but the big picture cg upside makes the running costs worthwhile.

Being a landlord is not an easy job! It pays alright so I'm going to keep at it.

 

Apart from tenants breaking stuff,the house isnt waterproof etc. Expensive problem after problem.

Still, Im thinking big picture!

 

Buy shares, you only have to ***** about being short changed on the dividend once a year.

 

I bought a property using a buyers agent a relatively new townhouse.
Builders warranty ended this year. Also not waterproof and every month something needs doing. The PMs recommended tradesman charges a lot. Now, I am dealing with most repairs despite paying the PM a 7 %. It appears that some investment property is about creating jobs, looking after big banks and maintaining the lifestyle of tenants at the expense of the mom and dad investor.

 

You also have to ***** when there is some global sneeze and your stocks drop 30% in a few days and you crap your pants 5 times a day for a month straight until you get used to your new cash position of much less than before and accept you will need 5 more years for it to catch back up.

 

I have thought about selling due to repairs, but the real issue on one is the tenant is home all the time and uses everything....a lot.

It goes up in value but, they pay the rent etc.....frankly, the PM is more of a headache than the tenant or the property now that I think of it. Most things end up small & fixes are easy.

Some time ago I got rid of one due to the neighbors, PM and tenants were very good, ironically a crappy area, basically some residents and a totally whacked drugged up resident caused a lot of issues, probably should have held as it went up by about 25% or so not long after.

So, if it has seen a boom cycle already & is giving you hell and there is no way out of that, maybe selling and putting money into something else newer may work, but you can always get a pesty tenant even in a new place, or a poor PM that sees you as an easy target.

This is not because of the doors etc is it ? they are small, non issues really.

 

Shares are great as a long term investment. If they dropped 30% what you do is use that as a buying opportunity to go and buy more. You need to look at shares as giving income via dividends. The daily capital value is not of primary importance. If the share price dropped 30% due to something like a political issue, use that as an opportunity to buy. Its highly unlikely the corresponding dividends would also have dropped 30%. Look at history. Side note... can't pick shares? Not a problem. Buy one or more LIC. Less volatile/no chance of it going to zero value (unlike an individual share purchase). Read the LICs threads and ask someone for a chat about them.

Avoid touching the capital at all... Just allow the shares to keep paying franked dividends. Long term the shares will keep giving and giving and giving. In the meantime, keep accumulating shares, growing a bigger and bigger portfolio.

Its likely nobody here is in this position but if you invested the equivalent of $1000 when Westfield went public in 1960 and reinvested the dividends, in 2014 the holding would have been worth roughly $223mill.

+1 if it had already boomed, but I think it's Brisbane. Which hasn't done a Sydney.

 

I've never sold anything due to repairs. Go there, fix EVERYTHING, then it should be good for a long time with only minor issues. Unless, of course, you bought something that has some SERIOUS issues. If the tenant is causing problems, move them along.

On the otherhand, we have sold two due to the dodgy neighbours. Both of them weren't in the best suburbs, and the neighbours were Housing Department tenants, so they weren't going anywhere soon, otherwise, we would have held on. One place used to get broken into each time it was vacant & a heap of damage done. The other one had kids repeatedly trashing it. We DID get a small CG from each, so there were no tears on offloading either of them.

 

Thanks guys
Door issue becomes a minimal @dabbler. I will be glad if didn't get sued!! I guess getting rent on time is a big plus.. But I am getting annoyed at so many things keep coming up in that particular ip only. I can't wait till those fussy tenants out and pm changed
My mentor told me to look at the bigger picture which I should...

 

I think we avoided this by completely renovating before our tenants moved in.

 

With tenants like this in place, did/have you renewed their lease, or did you get rid of them at the first opportunity?

 

I got rid of them after when they said they would sue me for rain damage to their property.

I might have kept them on otherwise because there is a high vacancy rate in brisbane but threatening to sue was too much!

 

Ouch! My Brisbane place has the tenants just about to vacate (nothing wrong with the property or the tenant/LL/PM relationship - they are just looking to move their separate ways).

Hope it doesn't take too long to find another one.

 

I sold one in western sydney in 2015 as despite being 8.5% yield, was a real PITA and poor quality tenants in complex made it hard to attract good ones myself.

Used the money to reno my PPOR, which I then drew down on increased equity invest in other properties which offset any additional gain I would have seen by holding, plus no more PITA, plus a renovated PPOR.

Use CG where it makes sense, adn dont just hang on for dear life through some notion that you should never sell.

 

Agree with what Dave said above basically. I had a similar one myself I sold last year north of Sydney. Constant repairs and crappy tenants. The whole house was due for a major renovation, being regional it would have been time consuming and expensive to do. Yield was over 9% but just couldn't see the benefit anymore. Sold up, spent the money on a new PPOR for us!

People underestimate this, especially people who don't have kids. If you have a stay at home mum with kids they will hammer your house. Hell, my wife has been home for 2 years with our two and I can see the wear and tear it has done to my own home.

 

This is something I've been debating for awhile, ex ppor for 6yrs, now ip, cg was up ~70k 3yrs ago, now fallen back to about 15k.
Great location short walking distance between train, major shops, sporting ovals/clubs etc, imo it should have been rezoned high-rise by now, why I bought it, but council still not considering it, might not happen for another 10yrs, who knows.

Prices are also low in all nearby areas, some areas a lot nicer I'd prefer to be in but imo perhaps not with potential rezoning cg. Sell low, buy low now (+ costs) or wait/hope for rezoning, if I wait for increase the other areas also increase, feel like I'm deciding black or red on roulette.