Subj : Re: 3.5 weeks to being la
To   : Arelor
From : boraxman
Date : Sat Jul 23 2022 00:52:24

 Ar> I have yet to see a used property for sale that didn't need repairs and
 Ar> rehabilitation
 Ar> to a degree. If it was suitable for renting right away the seller would
 Ar> have been
 Ar> renting the property more often than not.
 Ar> 

In Australia the house could be on fire, and still be out of the price range of most people.  I've seen DUMPS with astronomical price tags, and dumps for rent.  If you're renting, and the market is very tight, you take what you can get.

Maybe its different where you are, but here things are very stacked in favour of investors.
 Ar> Last properties I have bought or seen bought required more money in
 Ar> repairs and conditioning than they costed. I am not buying the argument
 Ar> that professional landlords do nothing but sitting on their lazy asses
 Ar> all day getting free money.
 Ar> 

I can believe that renovations are costly, but in Australia, not more than what the property costs.  It is the land which is expensive here really, not the house.  The house can be a total delapidated dump.  You're not paying for the house so much, you're paying to secure a space.

Houses here are half a million dollars for a cheap one. No way repairs cost that much.  I fixed up the house I purchased for about 10% of the purchase cost, and that purchase cost was defiantely at the lower end.

You may not buy the argument, but for many here, that is what they do.  I've rented a couple of places that weren't changed since the 70's, and the landlord wouldn't even get a professional to do repairs.  He'd come in and waste half my day fixing the toilet cause he was a cheap bastard who didn't want to pay for a plumber to do it right.

I've known someone else who was an investor, who didn't even understand how it all worked.  They just had some other company manage it.  They did nothing at all, just watched money roll in.


 Ar>
Maybe it is different with banks, since banks have a tendency to own
 Ar> large stacks of
 Ar> new or almost new property. Those could go for sale or rent with no
 Ar> meaningful repairs
 Ar> done.
 Ar> 
 Ar> 

Might be a cultural difference.  Australians are very focused on property.  In the nightly news on a weekend, they will report auction results.  Can you imagine watching new from the biggest news channel (free to air), and a news story is about a house that sold?  Every week?  Real Estate agents sponsor news segments, it is very much part of the culture.  And with that comes the elevation of property investment as some great Australian way of life, which the government basically props up so that dumbass investors (and they often are dumb) can just throw a big loan at a property because it is what everyone else is doing.  Some investors are sophisticated, but many are just average people who don't understand economics.  Thats probably why the market is propped up, because otherwise so many unsophisticated people leveraged to the hilt will be undone by market forces they weren't even aware existed.

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