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  1. #1

    Default Did I stuff up big time ? Advice?

    I recently bought a 4 bedroom home in Wanganui for 75,000 the RV is 102,000 and its neat and tidy looking , fully fenced with a garage and landscaped yard. But after speaking to property managers I have found out its in a mongrel mob street and it will be hard to rent out to good tenants that will stay for long periods and property values may not rise much because of this and some property managers wont even work in this area. I have found a tenant that will pay $200p/w and he has great references from the PM and hes been in the area a long time he currently rents from the same manager but wants a bigger house and is eager to move into mine. I did not know it was a bad area as you cant tell my looking at it , there are alot of state houses around but these seem to be in alot of places. My question is do you think I could have done alot better than I did? This is my first purchase and after finding out all this info im just wondering if I really stuffed up. Should I try to sell or wait a while and see what happens? Any advice from people in or who have been in similar situations would be greatly appreciated.

  2. #2
    Join Date
    Sep 2008
    Posts
    7,658

    Default

    all the reading and studying of the market etc before buying is well and good

    but you need something "real" that you can compare future deals against

    so it it is far too early to think of selling what you have just bought

    get someone in there paying rent asap

    and take it from there

    you are the 1 on the spot with all the info

    you'll have to make the decision on which PM to go with

    and then rely on them to get the right tenant

    do that

    and wait to see what happens...
    have you defeated them?
    your demons

  3. #3
    Join Date
    Sep 2007
    Location
    Christchurch
    Posts
    1,259

    Default

    A couple of us have answered on your other thread. It doesn't sound like a stuff up, really - the return is excellent.

    https://www.propertytalk.com/forum/sh...and-whos-right

  4. #4

    Default

    Thanks guys, and I know you answered my other thread....I guess im just freaking out because its my first time and its quite stressful because im new at this but I guess we all go through it and live and learn! thanks for input I really do appreciate it and I am feeling abit better about it now.

  5. #5
    Join Date
    Apr 2009
    Posts
    1,005

    Default

    If it is the wrong purchase for you and stops you going forward then I would sell and do better. Do a quick spruce up, get a good tenant at maximum rent then put it back on the market.

    If the market turns sour this one could prove hard to get rid of.

  6. #6
    Join Date
    Dec 2009
    Location
    Tauranga
    Posts
    230

    Default

    What street is it?

    I grew up there, some people stigmatise certain areas without really knowing the worst spots. May end up being a good cashflow buy, if your tai bo guy checks out ok. All in all you're going to learn and be better equipped for the next deal.

  7. #7
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    If you have a tenant who knows the area and comes with good references, don't look a gift horse in the mouth. Whether or not you "stuffed up" will depend on your own person risk tolerance, goals, personality and situation. You might be the sort of person that thrives on the lower end investments or it might not be your thing. Time will tell. It sounds like there is potential to add value and on-sell, so you have an exit plan right there.

  8. #8
    Join Date
    Mar 2005
    Posts
    131

    Default

    $75,000 and $200 rent stacks up pretty well for me. Have 2 properties in a street just round the corner from the Mongrel mob headquarters in Wanganui. This is a pretty middle class street and neither tenants, nor naighbours have had any problems. And they've always rented quickly, usually for 3 or 4 year periods. Grab this tenant - It's not a bad return at all.

  9. #9
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

    The gangs tend to move on regularly anyway dont they?

  10. #10

    Default

    Not sure where the stuff up is. The return is good and you have a tenant willing and able. They don't have to be great but there are more good ones than bad out there.
    I've lived 5 houses down from BP and never had a problem with them. Generally tend not to sh*t in their own nest if you can follow that although we (my neighbours and I) were amused when a huge shipping crate appeared on the front lawn one morning? Couldn't get my mind around the logistics of shifting it there. (this was down a papakura sidestreet too).
    My only advice is that next time you want info about an area, talk to the local dairy owner. They have the gossip on everything.


 

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