Dealing with the downsides of property investing



I have been quite flat-out since my last post. Work has been quite hectic to say the least and I have been capitalizing on the overtime available, working full-time, plus overtime in the mornings, evening and, of course, weekends.

I am a subscriber to Your Investment Property magazine and due to my busyness, I had several copies unopened. I genuinely enjoy property investment, and have been catching up on the last 3 issues over the past week or so.

Property is always on my mind, as is my next move (investment property-wise). I was interested in a house in Cessnock on a large 800m2 corner block. The house is 2 bedrooms, but could easily be converted to 3 and with the large block a granny flat could be easily added, and the possibility to subdivide exists. The property was listed for $269,000. I offered $250,000 which was counter offered by the vendors at $260,000. I said I could come up to $255,000 and not a cent more; however the vendors were set on their $260,000. The property is still for sale...

Thinking further about my next move, I decided that it might be time to use the services of a buyers agent. The fee of $7700 is a lot of money, however in the end the value of the service provided hopefully will far outweigh that outlay. I am scheduled to have a teleconference tomorrow with the buyer’s agent. Exciting times…

And finally the downside of property investment raised its ugly head today. I constructed a new property with my parents for the sole purpose of renting it out.  The real estate contacted me to inspect the property; there were a few things that they weren’t happy about. Upon attending/inspecting the property, it became clear that the tenant had been quite rough with the walls/ceiling. Holes had been made in the walls; however, their attempt to patch these was hopeless to say the least. And the tenant decided to repaint the whole inside of the house. The job is absolutely terrible, and virtually the entire inside of the house needs to be repainted. There are damaged fly screens, door handles etc. are other things that need repairing. They were handed a termination notice today, giving them 14 days to vacate…

Just a few weeks in the life of a property investor :)

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Twenty five year old Ashley Fallon is new to investing but it’s already clearly his life’s passion. A native of NSW’s Hunter Valley region, he’s already amassed a portfolio of four properties and now that more than a year has passed since his last purchase, he says he is now ready to pull the trigger again. He hopes to quit his day job as an operations manager for a local bus company, and roll into property full time.

Top Suburbs : emerald , homebush , mt lawley , westmead , albion

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