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Gracemere Advice

Discussion in 'General Property Chat' started by Deepsquat, 24th Dec, 2015.

  1. Deepsquat

    Deepsquat Member

    Joined:
    11th Oct, 2015
    Posts:
    8
    Location:
    Melbourne
    Hi,

    Hoping for some advice please.

    My wife and I purchased 2 IP's in Gracemere approx 2 years ago.

    I know the area isnt going well and we are concerned about several issues.

    The properties are within a gated development and the contract stipulates we cant change PM's. Our PM is useless, never sends through invoices, impossible to get hold of.

    We made some amateur mistakes.

    The purchase was appealing at the time because they were tenanted, as the developers were renting them and sub-leasing to actual tenants. We werent aware of this, it was never mentioned by our property adviser but was in the small print.

    The developers are the only members of the body Corporate so fees go up continually as they rubber stamp any proposals.

    Essentially I was wanting advice on an independant company/person in the area that could value these townhouses so we can get a feel for how bad things are and develop a strategy.

    Of course the PM and the person that advised us on the purchase tells us to hold tight, just a short term downturn but rents have dropped significantly over the past 12 months and 1 property has been empty for months.

    There are other concerns id prefer not to mention on a public forum.

    Thanks in advance
     
  2. Matt E

    Matt E Member

    Joined:
    19th Oct, 2015
    Posts:
    12
    Location:
    Brisbane
    I'm surprised that your contract prevents you from changing PMs - unless the property is part of a managed scheme where investors share pooled income (which requires significant disclosure documentation upfront), I believe that QLD law prevents any PM locking up the management of an IP indefinitely?
     
  3. Deepsquat

    Deepsquat Member

    Joined:
    11th Oct, 2015
    Posts:
    8
    Location:
    Melbourne
    Hi matt,

    Thanks, ill take another look into it.

    Its definately not shared pool income, all individually owned so ill take a look.

    The PM we currently have is useless. Happy to see the property sit there vacant for months with no contact or discussion about potentially dropping asking rent etc

    Cheers
     
  4. norwoodman

    norwoodman Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    261
    Location:
    Brisbane, QLD
  5. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    Hey deepsquat,

    I've got 2 properties in gracemere. The rental market is definitely not what it was 3 years ago.

    The vacancy rate has recently improved from about 7-8% to around 3-4%. Both of my houses had tenants leave when the vacancy rate was at 7%. Each time it only took me a few weeks to get a new tenant so I think the problem lies with your PM. Obviously you can look online and see if the asking rent is in line with the rest of the market.

    Hard to know whether to hold on for better times or cash out! Hopefully a high school gets approved in the near future.
     
  6. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    Here's the vacancy rates for gracemere
     

    Attached Files:

  7. Deepsquat

    Deepsquat Member

    Joined:
    11th Oct, 2015
    Posts:
    8
    Location:
    Melbourne
    Thanks Dan, thats brilliant. Much appreciated.

    Ill be getting onto it immediately in the new year.