Opinions: Should I Buy This?

2012-02-20 21:54:34

#1

Ty: Mass Media Casualty; +2,398|7161|Noizyland

Sup fulluhs.

The property market is good for buyers, interest rates are low and I'm tired of my rent money going to pay someone else's mortgage when it could be going towards my own which would put me on the property ladder. With that in mind my folks have convinced me to get my own place.

But this is all happening very fast, I was at an Army ex all of last week and I've come back to this whole thing just rushing ahead. My Dad, who is the one fronting the bank's cash, is keen to go ahead and is likely to make a $510k offer tomorrow when tenders close. I'm very new to all this and property/finances/economics have never been my strong suit, it's a bit daunting.

Basically what I'm asking is should I go ahead with it? I'm not one to jump into change and this has all been happening really fast. I'll have to find tenants and manage the place but it's nothing too strenuous, (I think.) Anyone have any experience or tips or... basically anything to say at all? I like the place and I like the idea but it's a pretty big step and I have a considerable amount of doubt.

This is the place if anyone's interested.

[Blinking eyes thing]
Steam: http://steamcommunity.com/id/tzyon

2012-02-20 21:57:26

#2

13urnzz: Banned; +5,830|6884

home ownership is the best long term investment you could make, at your age.

i wish i had started sooner.

2012-02-20 22:01:06

#3

bugz: Fission Mailed; +3,311|6699

Draw up your own rent agreement for tenants. Ask them for the first and last months rent up front. DO NOT hesitate to give an eviction notice if one of the tenants falls behind on rent or if they are causing grief with others.

Steam: http://steamcommunity.com/id/ebug122

2012-02-20 22:15:47

#4

Reciprocity: Member; +721|6967|the dank(super) side of Oregon

so you're buying this condo to rent out or live in?

2012-02-20 22:18:11

#5

Ty: Mass Media Casualty; +2,398|7161|Noizyland

Reciprocity wrote:
so you're buying this condo to rent out or live in?

Three bedroom place so I'd live there with two tenants.

[Blinking eyes thing]
Steam: http://steamcommunity.com/id/tzyon

2012-02-20 22:19:43

#6

Reciprocity: Member; +721|6967|the dank(super) side of Oregon

that sounds like a horrible idea.

2012-02-20 22:32:26

#7

Jaekus: I'm the matchstick that you'll never lose; +957|5565|Sydney

Ty wrote:
Reciprocity wrote:
so you're buying this condo to rent out or live in?
Three bedroom place so I'd live there with two tenants.

I think it's a good idea.

Write up a sub tenancy agreement and get them to sign when they move in. You have complete control and at any time you can evict a tenant that isn't playing by the rules. Plus when the interest rates eventually go up you'll have a financial buffer against the increased cost.

Sure, it has its risks, but to get ahead you've got to make a few calculated risks here and there. You come across as someone with a sensible head so I can't see it going pear shaped for you.

2012-02-20 22:49:46

#8

Ty: Mass Media Casualty; +2,398|7161|Noizyland

Reciprocity wrote:
that sounds like a horrible idea.

How so?

Currently I am living in a place that is owned by my flatmate. It's a two bedroom place but there are three flatmates, (his girlfriend being the other.) It seems to work okay.

[Blinking eyes thing]
Steam: http://steamcommunity.com/id/tzyon

2012-02-20 22:53:09

#9

Jaekus: I'm the matchstick that you'll never lose; +957|5565|Sydney

If it doesn't work you can always evict. There are plenty of people looking for a place to live and if it's a good area you'll have no shortage of interest. For instance, my girlfriend got approved for a rental today in Crow's Nest. The ad for sub tenants has only been up for an hour and she's already had a few inquiries. And she doesn't move in till next Friday.

2012-02-20 23:24:15

#10

Reciprocity: Member; +721|6967|the dank(super) side of Oregon

Ty wrote:
Reciprocity wrote:
that sounds like a horrible idea.
How so?

Currently I am living in a place that is owned by my flatmate. It's a two bedroom place but there are three flatmates, (his girlfriend being the other.) It seems to work okay.

living in a small space with two people you don't know sounds awful. Maybe you luck out and get two great people, but the relationships will always be inequitable -which isn't necessarily bad as long as that's always understood. Maybe i'm just a pessismist. My family used to rent out property.

I'm assuming there's also some kind of building association. What are the building fees? Are there subletting fees? If you do have to evict, what are the laws like? What would the parking situation be for additional cars?

Last edited by Reciprocity (2012-02-20 23:49:44)

2012-02-20 23:42:00

#11

iceman785: Member; +93|7059|Alaska, mother fucker.

Why not buy a multi-plex (4+ units) and live in the smallest unit and rent out all the bigger units? Then other people are paying a majority of all the bills and mortage and you end up with very little expenses yourself.

2012-02-20 23:42:01

#12

Jaekus: I'm the matchstick that you'll never lose; +957|5565|Sydney

Most likely there are body corporate fees. I don't think there would be sub letting fees but I could be wrong. Eviction would be two weeks notice but you're best off talking with the RTA to know your rights and legal obligations.

2012-02-20 23:43:35

#13

Jaekus: I'm the matchstick that you'll never lose; +957|5565|Sydney

iceman785 wrote:
Why not buy a multi-plex (4+ units) and live in the smallest unit and rent out all the bigger units? Then other people are paying a majority of all the bills and mortage and you end up with very little expenses yourself.

Assuming he has enough capital up front to be approved for such mortgage I doubt he would undertake it for his first property if the idea of one apartment is a stress.

2012-02-21 04:17:04

#14

tuckergustav: ...; +1,590|6300|...

Check the eviction process. Sometimes it can be difficult to evict and it turns into a long drawn out process that costs money. But, I am guessing you are probably going to live with people you know otherwise...correct? Shouldn't be a big deal. Just have to protect your interests in the end.

Looks like a nice enough place, too.

...

2012-02-21 04:18:28

#15

Jaekus: I'm the matchstick that you'll never lose; +957|5565|Sydney

I think in Aus it's pretty easy if you have a signed sub tenancy agreement. My girlfriend had to do it at least twice in the previous twelve months with troublesome housemates and they were gone within two weeks. She lives in Sydney.

2012-02-21 04:23:08

#16

tuckergustav: ...; +1,590|6300|...

yeah, everything here takes forever and you have to go through a shit ton of paperwork. We had considered owning a rental property for a hot second. Only worth it 'cuz the house cost less than a car...

...

2012-02-21 04:29:51

#17

Jaekus: I'm the matchstick that you'll never lose; +957|5565|Sydney

Well I think if someone got their back up and tried to stay it could be a drawn out process, but basically if you have a signed sub tenancy agreement then the authorities will back you all the way.

2012-02-21 05:21:13

#18

Cybargs: Moderated; +2,285|7103

Look at the avg prices of houses around you and historical market price for the area (see if prices drop...), but if interest rates are really low for NZ right now, probably the best time to buy as long as you have enough capital to not pay 3 times the value in interest

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2012-02-21 05:30:04

#19

UnkleRukus: That Guy; +236|5423|Massachusetts, USA

If you have the skill to keep a place like that in good shape, and you find the right tenants. You could make some good profit.

My boss owns two houses, one for himself and he rents the other out to 3 tenants. He bought his own house after saving up the profits from the rental house. Another of my co-workers rents out his basement and his attic (both furnished and liveable.) for a nice side profit as well.

You gotta be prepared to be on call at any time though. If a pipe starts leaking at 3am, you best believe you will be getting a phone call. You have to make sure the building is up to code too. I don't know how it is in NZ, but up here the building inspector, or the fire chief could show up at any time for a surprise inspection. If something isn't up to code you could get a sticker barring people from living there until the place is back up to snuff.

Since it's a condo though, you shouldn't have to worry too much about that.

If the women don't find ya handsome. They should at least find ya handy.

2012-02-21 06:58:47

#20

Macbeth: Banned; +2,444|5972

So let me get this straight, you are going to buy a $500k place to live with roommates? wat

2012-02-21 08:33:43

#21

HITNRUNXX: Member; +220|7096|Oklahoma City

Let me start off by saying I KNOW JACK ABOUT CONDOS, and so I don't even know if the rest of this applies...

BUT, with Home Ownership, there is a lot that no one seems to think about. Yes, you are building equity, instead of paying someone else. Yes, that is good. However, there are things to think about:

1) If you own a home, you are responsible for upkeep. That gets expensive. I am putting in new energy efficient windows this week... $5K gone.
2) Part of being responsible for upkeep means buying things you may not have thought about in order to upkeep. There is a lot of "start up" cost associated with this, such as lawn mower, edger, water hose, ladder, tools, etc...

I am not saying anything to be discouraging, but just to make sure you have a realistic idea of what you are getting into and what you need to accomplish your goals... No one told me this crap when I bought my house at 22, and I was stupid. I bought in winter, then the grass started growing in spring and I was like "Ummmm... I can't afford a mower... What do I do?" A light bulb burnt out on our 15' ceiling, and I was like "Ummm... How do I get up there to change it? I can't afford a ladder..." etc...

2012-02-21 08:57:02