Who is buying what? Since the start of 2015 we have seen Investors from interstate and regional retirement. Their reasoning for buying now is that they won’t be able to afford their dream home once prices start rising, as everyone is expecting, once the new hospital has been completed in 2016. The bonus of buying now and renting out is that the Sunshine Coast is experiencing less than 1% vacancy rate in the rental market, with numerous potential tenants turning up to any open for inspection on rental properties.
This is a timely reminder of the importance of a GREAT, not just good, rental manager. Two properties we have inspected recently;
Case 1-a lovely little ‘nana house’ 3 bed, 2 bath, pool and double lock up garage in a prime location within 5 minutes to shops, beach and new hospital site. Currently tenanted for $430 per week with the lease expiring November this year (this property was undervalued in rent; it should have been around $480 per week). We turned the house down as a purchase for two reasons. 1. Our clients could not purchase as owner occupiers as the lease extended over the 6 months allowable by ATO in the first year of purchase. Secondly it was not producing the required yield and the lease was in place for another 10 months, so was not viable as an investment.
Case 2-an architecturally designed masterpiece with ocean views and a beautiful waterfall close by. The previous owners had purchased the property for $870,000. Our clients were very keen on the house but were concerned about the ‘damp’ smell throughout. At the Building & Pest inspection it was recommended that there be an engineer’s report on the flow of water runoff over the block. This uncovered approx $20,000 worth of work to rectify the water problem, which had been left unattended and compounded with gutters full of leaves and trees left untrimmed so that water had entered the house and ruined plasterwork and carpets. The property was purchased in the $600’s as the sellers were in a ‘have to sell’ situation.
In both these cases the person responsible for the visual inspections, upkeep of the properties and regular monitoring of the weekly rent appraisal failed in their duty. As you are paying around the same rate across the board why wouldn’t you find an Amazing rental manager? As you can imagine in our work as Buyers Agent we see a lot of rental properties and it isn’t hard to see which rental management agents are shocking, good or amazing. To utilise my knowledge for the best rental manager in each area ph me on 0415 186 766.