I have both, airbnb and regular rentals, and based on my current performance, I will look to get another holiday let rather than rental.
That is interesting to hear.
Do you live close to the airbnb rentals ? or have a manager & cleaner ?
Considering buying a unit with uninterrupted views.. not fancy place, but nice enough 2 bedroom/ 2 bathroom short stroll to fancy cafe's, right over the beach. Currently holiday let, but does not do very well... agent seems not very interested, owner equally uninterested... old, crappy furniture, drab inside unit.
I am torn between spending a bit to tidy it up, and keeping it holiday let (new agent), or Airbnb, or simply renting it out....
Always thought the constant need to get cleaning done, and maintance of Airbnb and holiday let made it a little bit of a pain and dragged on yield. Always assumed the only way we would do Airbnb is by building a couple of cottages at the back of our property which is close to national park and tourist area... so we could just pop in and tidy up, or pay our kids to do it....
Do you live close to the airbnb rentals ? or have a manager & cleaner ?
Considering buying a unit with uninterrupted views.. not fancy place, but nice enough 2 bedroom/ 2 bathroom short stroll to fancy cafe's, right over the beach. Currently holiday let, but does not do very well... agent seems not very interested, owner equally uninterested... old, crappy furniture, drab inside unit.
I am torn between spending a bit to tidy it up, and keeping it holiday let (new agent), or Airbnb, or simply renting it out....
Always thought the constant need to get cleaning done, and maintance of Airbnb and holiday let made it a little bit of a pain and dragged on yield. Always assumed the only way we would do Airbnb is by building a couple of cottages at the back of our property which is close to national park and tourist area... so we could just pop in and tidy up, or pay our kids to do it....
I am overseas, haven't got a manager, just a number for the cleaner
I am overseas, haven't got a manager, just a number for the cleaner
So how do you know that the cleaner is doing a brilliant clean? The cleaner is like a chef in a restaurant can make or break success of a property.
Do you try to get feedback from the clients?
The reason I ask this is that I rented out a Stayz property the second time over East and the owner requested to give her feedback on a new cleaner she had. When I visited earlier the first time the place was immaculate and spotless. However when I visited the second time there was little things like dust under a chest of drawers in the bedrooms, I took photos and emailed to the owner when we arrived. When guests stay on holidays there is an expectation that the place is maintained and cleaned. Its important especially if its props in highly demanded locations and for those in the exec status from apartments to architecturally designed homes in 1550 sq m block which can take up to 15 guests to be ultimate in luxury.
For my feedback, the owner reduced my accommodation total and of course gave all my security deposit back. Most responsible holiday owners of props will set up Terms and Condition of Short Term Holiday Rental Agreements.Another thing that makes or breaks my decision to go with 1 exec holiday prop over another is I like to gauge(during the enquiry phase) how flexible the owner is when I'm querying about the need to alter the check/in/out timings due to flights etc.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
So how do you know that the cleaner is doing a brilliant clean? The cleaner is like a chef in a restaurant can make or break success of a property.
Do you try to get feedback from the clients?
The reason I ask this is that I rented out a Stayz property the second time over East and the owner requested to give her feedback on a new cleaner she had. When I visited earlier the first time the place was immaculate and spotless. However when I visited the second time there was little things like dust under a chest of drawers in the bedrooms, I took photos and emailed to the owner when we arrived. When guests stay on holidays there is an expectation that the place is maintained and cleaned. Its important especially if its props in highly demanded locations and for those in the exec status from apartments to architecturally designed homes in 1550 sq m block which can take up to 15 guests to be ultimate in luxury.
For my feedback, the owner reduced my accommodation total and of course gave all my security deposit back. Most responsible holiday owners of props will set up Terms and Condition of Short Term Holiday Rental Agreements.Another thing that makes or breaks my decision to go with 1 exec holiday prop over another is I like to gauge(during the enquiry phase) how flexible the owner is when I'm querying about the need to alter the check/in/out timings due to flights etc.
All guests give you a rating, we have had 8 or so 5 stars, which is the highest score you can get. The cleaner is paid well , and her cost is added to the booking total. If you pay minimum wage for a cleaner, or don't get one, the reviews speak for themselves. Each landlord makes their own terms and conditions, so if you don't like them you can just find something that suits what you need.
Each landlord sets their own rules, so if they don't fit your needs just search for another that does.
You have to lookout for dodgy pple... like we had a guy who was in location, but wanted to inspect the property for cleanliness. The address is not listed until they pay. These people could be casing the place, or looking to scope porno shoot location, Meth labs, anything. So we checked his profile ( which you cannot do on stays ) and this was his first rental, apparently his wife uses "her" account and had problems with a place, and they left / fled mid stay. So he created a new account so I couldn't read the landlord s side of the story..... booking rejected.that is one big reason why airbnb is better, aside from the pain in the bottom lack of functionality on their webpage, and no app.
While the majority seem quite pleased with their airbnb, their are a few horror stories and things to be wary of as shown with this apartment in Sydney very recently.
So you agree that if prices fall a bit more, welfare recipients could afford the repayments ?
Maybe they could, but we will do some sums in a moment.
But do you think they could drum up the required deposit Terry ?
Do you think they would qualify for a loan Terry ?
So does it really matter even if they could somehow afford it ?
Remember this. It does not matter how cheap prices are, how cheap rents are, how much the population is growing by, or how low interest rates are, what matters is wheather you have jobs for these people. Without a job, you will not qualify for a mortgage.
Now , could they afford the repayments if prices dropped a bit more ? Lets say prices drop another 10%(despite apparently being at the bottom Terry) , so now this $390k 2 bedder is $350k . Lets pretend the banks think its so cheap they dont even need a deposit , or nanna pays the deposit and guarantors the property. And that stamp duty has been abolished , or nanna paid that too.
Ok... So now we have a 350k mortgage, and he rents the room out to his other dole mate for $150 a week.
A 350k mortgage over 25 years at 3.75% , would still see him around $400 a week after the rented room pays council, inurance, water rates ,strata fees or repairs.
Can somebody on the dole afford $400 per week in repayments ? Terry seems to think so. Thats what he tells us.
Will rates be 3.75% forever ? How much will repayments be if rates rise ?
Lets assume rates go to zero from our current 1.5 % rba rate, and banks pass on half, being 0.75% .
Repayments are still over $380 per week. Can somebody on the dole afford that ? And now we are at zero , so no more discounts to be had for any mortgage holder.
Lets assume the banks pass on the full 1.5 % from here. Repayments are still over $350 per week.
Will zero rates makes much difference, even if the mortgage holder does have a job ?
Look up Keystart in WA literally anyone who is reasonable stable can buy a home.
Trollie
24 Oct 2016, 07:39 PM
That must be a great comfort for someone who held off buying for the big crash.
All that rent that could have paid down a loan at record low interest rates ---all because he got greedy and believed someone was gonna sell him a great Perth home for next to nothing.
Poor old Jon Snow it is not as if he was not told over and over that winter is NOT actually coming.
Jimbo
24 Oct 2016, 09:49 PM
This really isn't worth fighting over.
If I put my loaf of bread on Gumtree for $1000, the price of my loaf of bread is $1000.
However. my loaf of bread is not worth $1000 just because I asked $1000 for it.
I may base my finances around the assumed worth, I may get a loan if I manage to convince a lender of the assumed worth.
Perhaps a whole economy could be based around the assumption that all loaves of bread are worth $1000.
But my loaf of bread is worth nothing until someone actually coughs up and gives me the money.
And the amount of money he gives me in exchange for that loaf of bread is the price, the worth, the value.
Tell me this are you selling your Barratts shares just because they are virtually unsalable at the moment? or will you wait a couple of years for confidence to pick up again.
RPdata might tell you the price of the few homes that are selling but that does not mean that you will get a home of your choice for that price. Why? because most people are not interested in selling into a downturned market - it is a stupid thing to do.
The best bargains are passed Jimbo ages ago you are just in too much denial to acknowledge your bad call.
Guest
25 Oct 2016, 07:29 AM
The jobs problem is a problem most wish to ignore. The problems we are now facing in the jobs market are lroblems we have never faced before. Its exactly why Ford and Holden are shutting shop here. An industry that has been here for near on a century supporting generation after generation into lifelong job security and home ownership. We are the only country in the world to lose our motor industry. None of these other countries that apparently had a gfc have lost theirs, but somehow we do. This is not just a reflection on the motor industry, but of Australian jobs as a whole. And how they are unable to compete with the rest of the world these days as our wages are the highest in the world and now out of touch with these cheap asain wages. But lets just all pretend this is not happening.
You then tell me that if unemployment goes to 7% , 93 % of people will still have a job. The reality is when we look at total population, less than 50 % would have a full time job. Thats what the numbers show. But somebody wishes to make out like 93% still have a job.
Will they have a fulltime job or a part time one ? Can you pay a mortgage or rent with a part time wage ? Can you obtain either with a part time wage ? How secure are part time jobs ?
You can guarantee that not everybody will own a home ? So can I, so what ?
You then say a large number are still employed. Perhaps they are, but will they be employed in future, many who were, are now not employed. Unemployment there is growing, and there is very little to support it from here. How do you top the biggest mining boom in history ??? The biggest jobs and wages growth ? The lowest interest rates ever ? All I am seeing is one very big ,very long windown , with very little to support it moving forward.
You then tell me in ten years time it will cost 50 % more in ten years . Could they afford 50 % more in ten years time ? With our wages so out touch with reality , will they be able to afford 50 % less in ten years time ? Wages must fall here not grow. If they dont fall then our jobs will just keep falling, its pretty much that simple.
We dont know what interest rates sill be in ten years time. They could be 6% in two years time, they could be ten. What we do know is that they cannot go much lower so there is practiclly zero chance of any relief from there. Only up side. People are paying interest only loans in record numbers, which includes owner occupiers. The reason is, that is all most can afford after taking on so much debt. Will they have a job in five or ten years ? Will it be full or part time ? How will all these pdople go when rates rise when they csn barely afford repayments while rates are at sll time lows. No problems here right.
After all that has supported this market for quite some time now, prices have not risen much at all over this time Everything that has supported this market, the biggest mining boom in history is now over. So too is the construction boom, so jobs are dissapearing there too now. There is nothing to replace all these jobs.
Just one big long windown is what the Perth market is facing, with little if ANYTHING to support it, now or forever. Future economic conditions are looking so dire both here and all around the world, that Perth may have already seen the highest prices you will ever see in your life. Sort of like those mining towns port hedland or karratha. When do you think these house prices will exceed their previous highs ? Do you expect to see this in your lifetime ???
The bigger picture for Perth is not that much different . All that was supporting it, is now disspearing. These little towns show us the macro of the bigger picture, an exaggerated example. Shows how the economy goes great when its all on the up, but how it will go when all that dissapears. Things elsewhere are just happening much more slowly. The effects take longer to filter through, but the signs are all there.
Good luck with your purchase chopper. Buy five, everybody else is.
What a load of old codswallup? You are taking a tale of a temporary slowdown and turning it into a deeper recession than the great depression in your own depressive imagination. You should get out more Perth is a great city on the cusp of a massive resources and energy led boom as the world economy recovers.
Have you seen how much shipbuilding and new technology companies are growing in Perth? What about our fabulous agriculture opportunites with the growth of Asia and the demand for clean fresh produce.
It makes no sense at all to make cars in this remote part of Australia.
Have you any idea how much money mining is making right now?
There are already early signs of shortages of labour in parts of the economy- unemployment will be falling very shortly.
You can cry yourself into a financial graveyard like the Sydney bears (Chris and Terry) or you can wipe the muck of those doomster glasses and wake up to this fabulous city.
Terry
31 Oct 2016, 03:47 PM
Before that you would probably need to define what your analytics objective is; why you would use a correlation to support your objective; and the best way to frame your data for your analysis technique. Analysis 101. Very little point arguing about a corr coeff. Mother cat can argue Colonel Sanders is the brand identify for McDonalds. If you want to confront a troll, keep it in perspective.
Ha ha ha from the guy who tried a z score on two data points - no mean and no estimate of variation.
Some things never change, Terry is still a complete numpty on stats.
Jon Snow
1 Nov 2016, 09:06 PM
I think internet trolling is a much bigger phenomenon than now than it's early beginnings on usenet.
The internet is now a "fifth estate", and the propagandists have been working hard to catch up in the new medium. Internet trolling has become a profession. In that sense, the trolling is about causing in an emotional response in those who are disseminating a view that doesn't fit the desired narrative, in an attempt to discredit them. Once the dissenters have been discredited, the desired message can be propagated unhindered.
Scott Adams has a great perceptual model for this: Humans don't really need all that much to survive, so they can hold all kinds of irrational beliefs in their heads without it having much of an impact on their daily survival. It's only in times of deep crisis that belief systems or perceptual models are called into question, because of some irrational and spurious belief in cause and effect (i.e. the faulty belief system caused the crisis, when really it was probably just laziness and incompetence).
Irrational belief systems are much easier to sell than rational ones, because they appeal to positive emotions. People would rather believe they are special or blessed by some deity than the more likely scenario that their ancestors were much better at murdering people, or that they are the beneficiaries of a global protection racket, backed by their military, and paid for by the disenfranchised in the third world.
Jon Snow/Miles you have swallowed whole the propagandists stories of banking collapses all on their own while the angry people like yorself get all their houses dirt cheap. This was supposed to happen with no effort and no political work on your behalf, this coneniently allows you toplay at being an intellectual halo-polisher on online disinfo sites. It is a neat way to keep the would be rabble rousers busy.
Meanwhile you are completely financially disadvantaged ensuring you will never become a respected influential citizen.
So many posters on here are wide awake to modern politics it is you who sleeps not us.
Dump the doomsters Miles , buy a wee place in Perth or Adelaide and make a financial success of your life. They will both boom like Sydney one day in the not too distant future. Get off the doomster blogs and read some real academic economists and try to get some awareness of modern propaganda and how it works to disadvantage you.
Elastic
9 Nov 2016, 11:57 AM
Read a recent article about Airbnb in Melbourne which stated that a saturation point has been reached for this market. Due to the growing number of available Airbnb rentals, the prices and occupancy have fallen to the point where it is better to have a permanent tenant.
Makes sense from an economic perspective that the market would balance after a time. I know in some areas such as around Byron Bay it is almost impossible to find permanent rentals because all the IP owners are listing their properties as short term rentals. I'm sure it has contributed to a fall in the vacancy rates in the major cities.
In Melbourne they are now free to do short term lets and no bylaws can be introduced to prevent it. That decision played out through the supreme courts this year. It is very likely that no other Council in Australia will now run the risk of upholding these strata bylaws trying to restrict short term lets. It cost Melbourne city $350m and the compensation claims are now starting from all the Airb&B ers who were pushed out of their businesses by the Council. I cannot see Sydney City or other councils following in their footsteps.
It is good for the market as the accommodation shortage in places like Sydney and WA during the mining boom was painful. I have often struggled to get reasonable family accommodation in Sydney and have ended up forking out for cold expensive hotels. In WA sometimes it is impossible to get a holiday let.
I think opening up the ability to short term let when the economy needs this type of accommodation is needed and it is not going away. In Perth ATM short term letting, even fully managed by a company, is more lucrative than normal letting.
People are dreaming if they think of hoards of unfortunate IP owners in Perth, it is a joke even normal yields are similar to the rest of the country.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Pdata might tell you the price of the few homes that are selling but that does not mean that you will get a home of your choice for that price. Why? because most people are not interested in selling into a downturned market - it is a stupid thing to do.
So you reckon the 20,015 listings on realestate.com.au are all the result of people doing a stupid thing?
Yet when the market was rising in 2014, the same search only returned 12,936.
The vast majority of owners bought their houses at prices lower than they can fetch today. The vast majority of owners can take a drop in price on their own property in exchange for a drop in price on the place they are looking to buy.
The only people who need prices to rise are morons like yourself who leveraged their shirt in the hope of getting some free retirement money on the back of a tight rental market.
Sucks eggs granny, you lose.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
I would get 400 a week, best case 500 a week fully rented. Minus 7%. Minus repairs for 100% use.
I have achieved over $3000, after paying the cleaning bill and airbnb fee, every month so far. On Average 3 bookings to deal with. Compare that with... $1850.
It's too much hassle for most ppl, probably why I am smoking in the return, and you are not.
Now let's imagine you have to repay a loan, and. Repayments are interest only $1000 a month. Now you profit $850 before expenses, I profit $2000.
Let's say your lvr is bad, and the repayments are $1500 a month. You get $450, I get $1500... yes it's like I have 3 x as many property income as some people...... what a pain in the arse all that extra money is.... but some ppl will never change, never ride in an Uber, and will be left behind in the bad times when rents are performing poorly.
If you want to get rich... it requires some work on your behalf usually, for me, 3 emails a month to book the cleaner, checking the Tennant review, and saying yes or no to the booking, and every quarter paying the bills. I probably spent more time writing this post than I have this month doing admin...
Very well done.
Just rinse and repeat...
Jimbo
15 Nov 2016, 05:25 AM
So you reckon the 20,015 listings on realestate.com.au are all the result of people doing a stupid thing?
Yet when the market was rising in 2014, the same search only returned 12,936.
The vast majority of owners bought their houses at prices lower than they can fetch today. The vast majority of owners can take a drop in price on their own property in exchange for a drop in price on the place they are looking to buy.
The only people who need prices to rise are morons like yourself who leveraged their shirt in the hope of getting some free retirement money on the back of a tight rental market.
Sucks eggs granny, you lose.
I have no feelings for the investors, It is the young people that have been caught up in this mess.
I as you all know was advised to sell Perth investments, I promised Foxbat that I would post that information up here on this forum for anyone that would listen.
Just so they could think about it.
Again my opinion only, please do your own research.
But I am hearing horror stories where young people scrapped into a loan well near the top of their range, bought a property that in the light of day is not very good and now that the market has corrected they are facing years of pain just to get back above water.
So sad, and it is the children of these people that suffer.
Mom and dad are financial handicaps for years.
But that is what has happened.
The fat cats sit back, having sold at the top, then wait for the collapse to start.
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