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Over several months I had to go back to the property around 8 times and eventually I got them out of the home. I lost around 6 months’ rent and it cost me a large sum of money to get it all cleaned up and ready to rent again. |
| I did re-rent the home through an agent, who placed a nice young family in the property, they leased it for around 5 years, without any hiccup and no rent problems in fact no issues at all. After they moved out I sold the property for nearly double what I paid for it. |
So in the end it was a good move to rent it out. If I had sold it after the 1st bad tenant, I would have lost a lot of money, and while having kept it I made a very good profit enough to buy more rental properties. I could never have saved as much money as what I earned from having kept the property as an Investment. |
That 1st rental property is what is called negatively geared rental property, so I also got a good tax return during the time I owned it, which helped me with the rates, insurances and cost of ownership. |
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I explain later on in this book about negatively geared and positive rental property and what I have learned over the years as an investor. |
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Australia has always been attractive for property investment FOREIGN investors were approved to buy or build 4500 Victorian houses last year - the highest level of foreign investment in Australia.
Of course banks have always offered finance for housing and investment houses, as it is the most secure investment of all, so I have always been keen on being a property owner and willing to learn the landlord trade. |
However the main advantage I received from my first investment property was it gave me the funds to develop my property investments. Owning an investment property is completely different to owning a home to live in. |
Owing your own home is important, but does not actually give you any profit, example, if I buy a home to live in for $500,000 then sell it for $800,000 5 years later I did not make any money or profit at all, because to replace that home I need to buy another home for $800,000 for a similar home that I sold, so I am just moving home. |
If however I have my own home and buy any investment home that goes up $300,000 it is all profit, I can sell it and buy a boat, holiday whatever I want because I still have my own home. |
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My Tips and common sense on :Rental Properties
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Create a web page for your rental availability. Unlike most ads, a web page you control will give you unlimited space to describe the property, and (generally) the capability to post photos without limits in a number or file size. You could, of course, buy a domain name for the property (about $10 per year) and build your own site, but a quick page on Google's Blogger.com, using one of Blogger's default design templates, does quite nicely. |
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Finding great tenants takes some work, but when you think about the damage a bad tenant could do to your property, you will probably find it's worth the time investment. |
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Tenants gain many rights as soon as they take possession of the property. Evictions are slow and costly; most can be avoided by doing the work before the lease gets signed. |
Key word ref:
,bad tenant,tenancy agreement,reporting bad tenants,tenant credit report,tenancy,national tenancy database,tenancy law,landlords insurance,property management,landlord insurance,house insurance,income insurance |
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