Hi from Canberra - Not your typical PI

Hi all

I'm originally from Sydney near Bankstown. Grew up on the Georges River. I moved to Canberra in 2008 at 37 years old as I got a graduate position in the APS.

I rented a unit for a little over 19 months before buying a unit on Springvale Drive Hawker. I lived there for over 7 years before some tensions with neighbors became too much and so finally moved out of the unit in March and now renting again myself. It's a longer story than this but suffice to say I feel it was my only option given the way things were headed and the impacts it might of ended up having on my and my household's wellbeing and employment.

So this is why in my subject I mentioned 'not your typical PI' because I never in my dreams thought or intended to be one. My unit is sitting there vacant while I shop around for tradies and suppliers including paint work and carpet to prepare the unit for rent while on a tight budget.

Initially I thought about selling the unit but as any local knows, units there are not selling well at all, even at prices approaching 10 per cent less than what they were selling in 2009 - during the global financial crisis. This in and of itself is a problem where equity is concerned given I have a loan of 260k.

I actually did see someone from a local real estate agent about selling, who presented me with a marketing plan, and I decided right there and then I wasn't going to buy it. For a start if I did, I would have had much less money left over for repairs to the unit and a very high probability of no sale, as I could see from my own research of local listings and sales information that he curiously left out of his presentation.

So here I am now, with absolutely no experience in this industry, looking to become some kind of property investor, if even just to cover as many costs as I can. To be honest I do feel nervous. I still have a MAV loan with CBA, as I mentioned over 260k, which I have moved back to IO. I am currently considering fixing the large loan of 200k for a 2 year period, which my mortgage broker encouraged me to do. Fortunately I do have a secure job clearing just on 1k per week, or otherwise 4K per month, less 2.5k for rent and IO loan.

I have spent the last couple of months reading to learn as much as I can, especially with regard to property management, keeping records and taxes - among other things.

So it's great to be here and read through various threads on different issues pertaining to property investment and management. I hope to learn much more from the many brokers and investors on this forum.

Thanks for your welcome
Steve

 

Welcome Steve. Sorry to hear about the tensions with neighbours. Wondering if reporting it to strata could have helped?

Anyway, I suggest get your repairs and maintenance work completed ASAP - best to be able to rent it out sooner rather than later as every week it's vacant it's costing you money.

 

Thanks Gockie, yes indeed re getting repairs asap. Unfortunately strata didn't do or offer anything about the situation when I reported it to them.

 

Hello pacey. And welcome.

Yes maximising your income is a must. Rent out that vacant unit as soon as you can. It will ease the budget.

Also you can get promoted at work. I'd say you are in the top band of the APS 4.

Don't be afraid to apply for higher positions. You' be surprised.

I mean I made it to the Executive Level before being kicked out.......whoa now you're flinging it datto....the APS do crim checks on applying.

 

Welcome aboard Steve

Don't spend too much on the renos. Bunnings can supply/fit carpet at affordable prices. You could paint yourself and save a few dollars or post a job on the home improvement pages for a handy man to carry out the work.

Cheers

Jamie

 

Welcome a board

What is "your typical property investor"?
...Tightarse baby boomer that drives a late model European car?? Or youngster with a swag full of properties and a wall plastered with motivational posters

Your neighbours might have done you a favour! Use them as motivation to buy more IP's and have no guilt when you jack up the rent

 

Thanks for that folks. Datto yes you got that right. It's hard(er) getting a promotion these days as many agencies don't have the money they use to. Still I keep looking for opportunities.

Jamie when I read your suggestion this morning about Bunnings, I went down to the Belconnen store only to discover they (and I think Gungahlin too) don't do Installations. If anyone knows of other Bunnings stores that do or carpet shops please let me know. The cheapest I found is Queanbeyan Carpets at about 2200 supply and install for the two bedroom unit of 60m2.

 

Bunnings stopped doing carpet, have you tried Lemons carpet and blinds in Fyshwick?

 

Bugger. Last time I had it installed was via their Belconnen store - it was a couple of years ago though.

 

Yeah but thanks for the suggestion though Jamie! I always appreciate tips and SKI thanks as well, I've sent my initial query to them.

 

firsty, sorry to hear you are from canberra

i got carpet installed not that long ago from Bob walker in belconnen ..cant remember how much it was but 2200$ seems a little much for some cheap hard wearing polypropylene carpet which is what you want for rental (imo)

i have this book 'Saving tax on your investment property / Noel Whittaker, Julia Hartman' lying around somewhere if you want to borrow it, assuming i can find it, probably good for your level