Canterbury Property Services

Hello again Rocket,
Yes it is a great feeling, one that you will realize soon enough
So far the only negative was a bad tenant, but that's been all fixed thanks to Insurance and Canterbury.
Pop in here now and again to let us know how you are progressing ok.

 

Bad tennants sometimes cant be helped I suppose.

Would love to hear how your valuations go when the time comes for your third property. I'll keep you updated as we go along. Its been a long time since I had to look for work and I'm finding its very impersonal nowadays. Seems a case of sending and email and wait for a reply that seldom comes.

Cheers
Rocket

 

Hi All,
Good to hear all the progresses. I don`t know anyone faced like my situation- no tenants for 3 months after the handover and the RMP agency cannot find a tenant as advertised and forcing to reduce the rent for the third time from 420 to 360. (That will be 300/month out of pocket including the tax benefit and expenses)Local agencies are behind me as they got tenants lined up ready to pay around 400. I don`t have any control over the property and they are not ready to give the keys as well. Did any one come across like this or what? Please advice for my peace of mind. Please respond
Thanks

 

But if you own the property cant you allow the other realestates to put their tennents in?

Are they paying you your rental guarantee?

 

Yes Rocket66.That is my concern and question. Can l breach their promises and engage another Agency?? What will be the consequences??They are paying the rental guarantee after the agency fee and still it won't cover the interest. I just want to know somebody out there used a second agency to get the tenant.very frustrated with the first deal.
Thanks

 

I'm not sure if you can or not. I'd lay it out on the table and see what they say, seems they have had enough time to find someone and if you're going backwards you really need to speak up.

I havent began their program yet because I was recently made redundant so have to be in my new gig for 3 months before the banks will say ok. They're pretty open people as far as I know, maybe a Canterbury Veteran can help you further.

 

Hi JV, sorry to hear your dilemma, the rental guarantee should cover your losses to date since they will pay 420 less management fees,so should be no loss there. I had a similar situation and the only worry was an empty house in summer, so had to mow lawns etc to keep the place presentable, RMP told me Canterbury would also pay for that, so put it to them. Where is the property that it's taking so long to rent out? The other thing, don't be conned by other agencies saying they have tennents in waiting, it's usually a ploy to get your business, we had exactly the same offers on numerous occasions. Hang in there.

 

Hi pdg, The property is in Burpengary.3months after the hand over. very frustrating, I have asked to pay for mowing the lawn this winter already once as it is my responsibility to maintain the yard. Not only the agency I am getting enquiries through Gum tree post as I posted there to see the responses from the house hunters. The thing is that I am not keen to manage myself. CP is very reluctant to give the subsidy this month as the asking rent is too higher than the market rent.( asking 405/ wk for a 429,000.00,4 bed 2 bath 2LUG house and should be 360 as per CP and got the subsidy for 360 last month)I am not the one decided the rent at the start RMP did all the numbers and keep on insisting to reduce further and further. I am paying 1900 as interest only. I don`t know what to do now.

 

Hi pdg, The property is in Burpengary.3months after the hand over. very frustrating, I have asked to pay for mowing the lawn this winter already once as it is my responsibility to maintain the yard. Not only the agency I am getting enquiries through Gum tree post as I posted there to see the responses from the house hunters. The thing is that I am not keen to manage myself. CP is very reluctant to give the subsidy this month as the asking rent is too higher than the market rent.( asking 405/ wk for a 429,000.00,4 bed 2 bath 2LUG house and should be 360 as per CP and got the subsidy for 360 last month)I am not the one decided the rent at the start RMP did all the numbers and keep on insisting to reduce further and further. I am paying 1900 as interest only. I don`t know what to do now.

 

Mate, you need to go and have a meeting with your client manager and Robbie. If you can find a real estate agent that can get you a rental yield of more than 4.5%, that is around 370/week plus, then I'm sure they'll be fine with that. I don't see why you're having so much trouble renting out the house, Burpengary as far as I can make out, have a vacancy rate of just 1.5% which is about as low as vacancy rates go and the value of your house is about right for the area.

 

Hi JV have you gone back over your notes that CPS would have gone though with you in regards to what you will receive net rent income and tax? As they have said to me since day one i will not be out of pocket and the chart they did up for me confirmed that.

If you are not getting what they predicted you would get i would be taking this matter up with them not on here as CPS will give you the answers you need.

I have just started with them and any questions, doubts or concerns i have had they have been more than helpful to answer them.

How much is your interest rate? it must be high if you are paying $1900 p/m interest only cause i assume my loan is more than yours i have also purchased in Burpengary and paid more for my property than you and my interest only repayments aren't that high.

Now $360 p/w that CPS told you that you would get as rent you sure that's not what they said you would get after management fees?

As pdg said you need to organize a meeting with CPS they will be the only ones who will be able to answer any of your concerns as all CPS client will be different.

 

I was surprised by the issues raised by JV, as my latest property is in the very same area. Because of my worry I directly approached Canterbury today mentioning those circumstances. They immediately knew who JV was and gave me this consolation by email.

1) The vacancy rate there under the approved and proven agents is actually less than 1% - it?s 0.96%.
2) The simple, easy way to avoid vacancies in such areas is to only ask market rent. JV were clearly told that market rent was $360 to $380/week, yet they demanded $415/week and continually refused to reduce it. That behaviour guarantees you won?t get a tenant.
3) Their vacancy was not 3 months at all, it was 2 months. A tenant was found as soon as the rent was reduced back to reality.
4) The other agents that promised $400/week were ?found out? and could not produce such tenants when asked. In fact everything is online these days. How could such agents have a magical supply of tenants who cannot find a property, while the most prolific and proven agent does not?
5) Canterbury guarantee tenants at the market rent only. Once we had a client asking $550/week for a $400/week property and asking for the rent subsidy. What can we do? Guess when they got a tenant ? it was when they reduced the asking rent back to $400.
6) If the well-considered advice says $360 to $380/week, why do some people not just go with it, and ask silly amounts? Why reinvent the wheel and make things hard?
7) In hindsight, we should not have paid the rent subsidy to JV because they never played fair from day one.

Now I feel better.

 

Thank you all for your valuable post

Hi all,

I have spent the last two days reading all of your posts and found your posts to be so valuable. Thank you all.

My wife and I have been thinking of working on our second renovation flipping projects but giving it a second thought as flipping requires tremendous amount of effort as compared to this strategy.

I can't wait for my appointment with Canterbury 10 days later.

 

Hi Richief, How'd the Appointment go?

 

Hi All,

Last week I met with rob from Canterbury and can now understand why people speak highly of him. Really nice guy, answered all of our questions including some probing ones and walked out feeling good about the system.

Its one of those things I wish I had come across earlier but then again, its only in the last year or so where out equity has really climbed.

At this point I'm working on filling out some paperwork to get a clear cut picture of our position and we'll hopefully progress from there.

Rocket

 

Hi all just thought i would post an update here ... Investment 1 & 2 are running smoothly now . Had some tenants come and go but overall no dramas .... Decided to buy a PPOR now and looking to start construction in June.

 

Hi folks,

Was wondering if someone here could direct me to the tax law that covers the deduction of capitalised interest on the investment loans. I know that its not claimed under Canterbury's system, just need it for another reason.

Hope everyone's investments are going well!

Cheers, Rockett

 

Thats exactly what I was looking for, thanks for that Simon!

 

There are numerous private rulings on capitalising interest too. Some positive ones in the last 12 months as well.