| Rental Properties
Posted: 4/18/2008 5:00:59 AM | I am currently renting in Melbourne in a "middle" suburb.
For those who live in Melbourne, I've moved from Elwood to Cheltenham. For those who don't... I've moved from a bayside, cool, desirable, 10 minutes from the city centre suburb, to one that is a half an hours train ride away & is full of elderly people.
It's okay. The trade off is I have a unit with a garage, backyard & I don't have to live in an apartment. I've lost the most fabulous address ever. Acland Street. I do have BBQ's for my mates now though! I have a Weber!
My rent has gone haywire though. $760 to $780 fine! $780 to $845, okay $845 to $943 next month. I can afford it. Of course, I'm saving less though. I know it's not outrageous. It's still a totally reasonable increase. Everything else that is in the same area costs $200 more. I'm not moving.
The reports are that, within three years rents will increase 50%. How do people intend to deal with this?
I'm currently looking to buy one bedroom places in Geelong. I'll rent it out. Stay where I am. Once it's 3/4 paid off, I'll keep it & buy a place I can live in.
Any other suggesstions? | |
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TLC_
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Joined: 1/26/2008
Msg: 2 | |
| Rental Properties
Posted: 4/18/2008 6:58:20 AM | ok, so what was so good about an adress of Acland Street?
if you now have a garage and backyard (more privacy?)
geelong is good, but you are a gambler, so many ppl abuse rental properties. | |
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Posted: 4/18/2008 8:32:19 AM |
so many ppl abuse rental properties
Too right there. Just how many landlords are there out there, that don't maintain the proper upkeep on a rental property, it's just disgusting. And yet, they still feel the need/justification in charging absurd rental prices for appalling accommodation. Right on, abuse indeed!! | |
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Posted: 4/18/2008 9:18:35 AM | I live 2 stations away from you. Most people around here are in my age group more so families than single people of Elwood. I never found Elwood that attractive although it has some nice areas but it's packed with apartments and pigeonholes. Where I live it has everything I want and it’s only 20 minutes more travel to city compared to Elwood but I have a better life style than the busy cluttered Elwood.
In my opinion move away from Cheltenham and go towards Mentone, Parkdale or Mordialloc...where you are closer to the sea ( in some cases 1 - 15 minutes walk) and also might find it's much nicer than Elwood, anyway you are now only 15 to 20 minutes to Acland street.....
Forget Geelong buy and live here and live in it....why rent out what you could live in and enjoy today.
In a rented house you can't do much but you could do lots to your own and enjoy your house today and don't let renting wreck your house. You could buy a place and get a boarder or 2 until you are more comfortable with the payment.
I don't like Cheltenham its all depends on what part of Cheltenham you are in but Cheltenham is a very spread out suburb and although very close to the sea but it feels dry.
Beaumaris, Mentone, Parkdale, Mordialloc are all smaller suburbs and short distance from one another and a walk away from the sea.... packed with nice cafes and shops and you name it.... so much nicer than Elwood. | |
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| Rental Properties
Posted: 4/18/2008 3:34:54 PM | I find quite the opposite I have a number of rental properties and to date no real dramas with tenants and abuse.
First pick a VERY good agent.
And then and only then a VERY good tenant.
Bad tenants and bad landlords are unfortuantely part of life.
paint still drying. WP | |
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| Rental Properties
Posted: 4/18/2008 3:43:03 PM | (hmmm wonders what happens when the paint dries hehehe)
well as some of you know i have been thinking about selling up and renting. i am now having second thoughts (yes i can do that a: female; b: libran) after reading that horror story.
it is quite confronting hearing all the rentals sagas and increases and inspections and moves. has the world gone mad?!
ok back to cocoon and/or foetal position.
ps: good to see you back goddess!!!! | |
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Posted: 4/18/2008 4:03:38 PM | Hi Gee ,
Like anything, we always here of the bad not the good, there are many many contented tennants. I am currently negotiating a 2yr lease. It will give me stability as well.
I watched some programe a while ago that did the financail pros and cons of owning your own home and if you put your interest and payments into an managed fund and rented as opposed to a mortgage you would be better off.
Dont be too worried about the negatives the postives in the rental market are definately there, just not so well dramatised as they are not as interesting to the media.
I dont mean to down play any horror stories on here, I had a bad tennant many years ago, and she was a nightmare. But many others were perfect and treated the houses as their homes.
paint is still wet WP | |
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| Rental Properties
Posted: 4/18/2008 4:51:19 PM | Hi MissMilly
I would love you to move to Geelong...Id love to meet you, but because I love you, dont move to Geelong......!!!!
As Jimmy says, the nitelife will nearly drive you around the bend !!! and the condition of entry into the gated community of Geelong is to pay part of your annual income to the Geelong Football Club - GO CATTERS !!!, its a given
Nah in all fairness Geelong is ok and its very pretty down by the bay, but if you go that way you will find it hard to break back into the Melbourne market..for whats its worth, you should keep your finger on the pulse and look at Tarneit, Hoppers, Werribee, etc...still close to the city but still reasonably priced..any closer to the city and you will be wishing, sweating and praying over your Powerball ticket every Thursday nite.
No sure what the answer of the future is....tents ?? caves ?? caravan parks??..In a country so big with only 21 million people, with land to spare, this problem is just plain ludicrous !! | |
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Posted: 4/18/2008 7:15:07 PM | Milly
Suggest you talk to an accountant if you want to discuss your plans and your tax.
From what you have said it seems the best thing to do (assuming you have a deposit) is to buy a unit now anywhere that you are willing to live in right away or later.
Paying over $900 by yourself a month seems ok for what you are getting but the money is wasted. I would rather buy a 2 b/r unit with a garage and live there, if necessary get a border in to help pay it off asap as there is no tax benefit to you. However, you immediately start gaining equity and can sell that unit later to upgrade. | |
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Posted: 4/18/2008 8:14:49 PM | Why not move to Perth? You can get a run down old house with no hot water (because the landlord is strapped for cash), no fly screens, no working oven, a beautiful 'weedy' garden at the front and a sandpit at the back for just $300 per WEEK.
This is what my g/f on an invalids pension is paying for after leaving her abusive partner. Guess what? She's actually very lucky because people are fighting for rentals over here. And the Landlord? He knows it so he can charge what he likes without having to spend a cent on improving the property and there is nothing anyone can do about it.
I agree with another poster if you are in a position to buy then do it.....doesn't matter where. | |
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Posted: 4/18/2008 8:39:23 PM | Hi Milly,
Yes having some equity in a property is a great idea. If you have a job where you can do a bit of travel why not set up a thread for "Milly comes to visit" and go explore Australia one Fishy friends home at a time while someone pays off your home :)
Over here in Perth i am paying $2000 a month so clearly there are some good bargains to be had in Melbourne.
Best Wishes,
Rick | |
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Posted: 4/18/2008 9:27:04 PM | My 'besty' in Freo has a big old (but renovated) house on a large corner block (2 street frontage). There is a verandah all around. and it's almost surrounded by trees n shrubs...., ie very private.
It has 2 other structures on the property apart from the main house, a double garage and a workshop (both have high ceilings)
in diferent parts of the yard. Well..., externally they do look like a workshop and garage....., but, they are in fact 'secretly' small flats 'retro' fitted out in a very practicle and tasteful fashion. Two young couples are happily and cheaply renting these...., providing security and a sense of micro community or family for all. Around about are screens of privacy using both structure and vegetation. It's an old fashioned 1/4 acre block and so still has plenty of room. The couples have cheap rent and actively help and share in the produce from the small orchard and vegie garden. Its just a beautiful space as well..., reflecting the love and care invested into it.
This is not a new idea, and it IS mildly illegal..., but it is a way for live-in landlords to service their morgage while engaging in some entry level philanthropy....., while "c#cking a snoot" at the system ! It just needs a little moolah and effort initially.
Go the granny flat (s) ! | |
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Posted: 4/18/2008 9:27:21 PM | For those of you hoping to hop off the paying-dead-rent roundabout, as soon as you can muster up the deposit and the courage go for it. Do your homework, ask advice, and be prepared for the interest rates to give you a scare.
I hopped off many, many moons ago when interest rates were 17%. I bought a duplex which let me live in one side and rent out the other. It was a pretty ordinary kinda place but it suited me at the time - same price as a house (in those days) but with income.
Good luck Milly 
P.S. be sure to invite the surrounding POF folk to the housewarming... Howzat for a POF bash idea? Surely it wouldn't ba a 'Bash & trash'.. or would it...   | |
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Posted: 4/18/2008 10:48:31 PM | Sometimes renting is the smart option.
People use the term "dead money", when in fact a mortgage can be filled with dead money.
Remember that a mortgage isn't the end of the payment. Rates and other debts must be factored in as well.
Sometimes the home owner is paying 2 or 3 hundred dollars a week more to be able to say they are paying off their own home.
If they were to rent, and invest 2 or 3 hundred dollars "a week" into a fund returning high interest, you may find that after 30 years of doing this they have enough cash to buy a home and still have cash left over.
There are negatives to this scenario, like purchasing a car or other luxury item using the house loan as a means to have cheaper interest rates, but I don't personally see home ownership as the be all and end all. You need to make the decisons correctly. | |
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Posted: 4/18/2008 11:03:21 PM | ^^^^^^
Oh yes that's all true but one thing buying a house and paying mortgage does, it disciplines you...having money in the bank may mean you could easily free it because suddenly you have a craving for that new beautiful car or holiday....money invested attracts tax. I for one am very weak to save I need to save into propert, I know if I want something then bang I'll go and get it.
Now as much as it's true about mortgage and paying more than what you borrowed but at the end of the day value of brick and mortar goes up but money that you save goes up by very little percentage and it attracts tax.
Say a house that you purchased 10 years ago for 250, 000 is now 1,500,000 and even more in some locations.... how on earth you could have made that kind of savings in the bank??????
Buying property given that you do your homework right is the better option.
Okay say if I could sell my house today and could go and buy a house mortgage free I would never work as hard to invest like today I would work less and always find an excuse to spend the money that could go into my retirement. But that's just me.
Also don't forget....the money you pay in the rent leaves you less money to invest.
The only way I would consider leasing/renting is if I run a business from home and can claim the rent as part of my tax................ of course claiming your mortgage means you will have to pay capital gain tax and tha't silly but with rent you can. | |
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Posted: 4/18/2008 11:09:03 PM | I agree Goddess, but it does depend on if you are able t resist temptation.
And a lot of houses have indeed gone up in value by a staggering amount in the last 10 years.
It's all about homework as you said.
It's funny how you mentioned you would never work as hard if you were saving cash instead of a house...It's a strange mentality we all have.
I must admit, I'm a bit the other way in that the more money I have, the more miserly I become......Talk about strange.....lol | |
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Posted: 4/19/2008 7:38:04 AM | | Move to Tassie. Housing prices much cheaper down here. Price of living a bit more expensive but the pace of life brilliant. wouldnt give it up for quids. | |
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Posted: 4/20/2008 12:02:16 AM | Milly, something I'd like to do is build a house from second hand items.
You'd be surprised how cheap second hand building products can be.
I bought some items for our workshop and it was very cost effective.
A complete kitchen including dishwasher and cooktop for $500
Laundry sink and a good quality toilet and bathroom sink etc for $150
I'm thinking of starting to purchase items and design a house around that. SOme items would be knew like Gyprock etc, but it would be great to be able to build the rest of the house from the second hand items. Soe of it is in great condition. You can get staircases etc if you look around.
The uys next to us are a handy man service and have a continual supply of bathtubs in great condition that they remove from government housing and dump...So bathtubs are free...lol
In my past, I worked with a couple of mates who were qualifies builders. We built many houses through Central Qld. I used to do all the fiddly work like architraves and skirtings during the finishing stages.
When I finished my CAD modules, I also worked for a couple of years designing houses to gain more drafting experience, and this included 3D modelling, so I could not only design the house, but build it as well.......hmmm...Sounds like fun actually....Especially as a challenge to do it as cheaply as possible.
Just a thought | |
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Posted: 4/21/2008 5:33:37 AM | Can't help but agree! I am my dream tenant! I manage several properties for my Dad. Unfortunately they're too far away for me to live in.
When I moved in my front & back garden were weeds & cigarette butts. Removed them all & put in plants at my expense.
Had a toilet seat that......................have you seen Trainspotting??? Replaced it. Put up all new curtains, blinds & well, generally treated the place as if "it was my home". If someone is generous enough to let me live in their property , I should treat it as if it was mine! At least I think so!
Come home one day............. why does it look strange? My outside awnings are gone? The owner is not replacing them but we're increasing your rent $87p/m. WOW! Thanks!
My Dad's tenants think their water heater is too small for their use.............. BANG. He replaced it with a larger one! Why is my landlord so crappy when I'm a great tenant? | |
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Posted: 4/21/2008 6:07:38 AM | The rental market in Sydney is getting worse and worse.
They are having open houses for rentals in my area now with at least 20 applicants per property. Rents are skyrocketing. $300 a week for a small 3 bedroom home, which is nothing more than 4 walls.
I'll definatel be looking a buying. | |
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| Rental Properties
Posted: 4/22/2008 6:34:40 AM | | i live in a cheap one bedder rental in toorak, its not a big place, its neat tidy, and i LOVEEEEEEEEEEEEE ITTTTTTTT... i only pay 680 a month, and im so close to everything its not funny, chapel street, cinema, public transport all around.. it was great for when i was studying coz cheap but now i am earning more i wouldn't move anyway!! lub lub lub it.. and well if they put rent up which is possible... they have already but it might happen again, id still stay! | |
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Posted: 4/22/2008 7:07:44 AM | I pay about 800 a month for a share of a two bedroom unit. I live in Fortitude Valley, which would be the equivalent of somewhere like Chapel Street in Melbourne (if I know melbourne at all, which I don't) or Oxford Street in Sydney.
One thing people forget in the whole rent/buy question is one of lifestyle. I could afford to buy, I'm on over 100k p/a at the moment. But the amount of money it would cost me to do it alone is so huge. I have the choice. I can stay where I am and accept that "rent money is dead money" but happily pay it in exchange for the lifestyle. Or I can move further out, buy a small place on my own. If I was to buy a place it would cost me at least $300,000 and my repayments would go from 1/10 of my wage (for rent) to about half.
At the moment that extra is currently going towards paying off debts built up after my divorce and subsequent period of agonising horror, but after that is paid off (I hope to be debt free this year) I have a bunch of important financial decisions to make.
Not least: Do I sacrifice my entire lifestyle to try and build some sort of "nest egg" or am I better off just kissing it goodbye, and possibly (as Brisguy said) investing the difference. | |
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Posted: 4/24/2008 6:52:22 AM | Don't know what ppl means?
As a tenant i want to be the best landlord ever! Came home one day to no outside blinds. Bad luck. You're a tenant. We're not replacing them! My bedroom is in daylight as soon as the sun comes up.
I'm happy for a tenant to have my direct # if they are getting no where with the real estate. They should definately call me. Paying rent why should you go without? | |
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Posted: 4/24/2008 8:55:25 AM |
Don't know what ppl means? ppl = people it is an abbreviation or an abbrev.
Most people seem to think their neck of the woods is the place to be, except for Pookie. I have to agree, buying a place in Geelong to subsidise your rent in Melbourne doesn't seem like a great idea. | |
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