在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I have first time buying paralysis, if anyone cares to share what type of property they first bought and where it took them I'd love to hear it for inspiration.
We're hoping to resurrect the interviews again soon
A tiny old house in Ballarat after I realised the lending rules were the same, but the houses were cheaper outside the capital cities.
The chimney leaned, the doorways were wonky, crappy old carpets, up and down floors.
I got the grant, then wrote to the state revenue office to say I couldnt find work and wanted to move out and rent the place. They let me do it and the rent I got covered the mortgage (so I had to pay the rates, insurance etc and my rent in the share house back in melbourne).
Its been empty probably 2 months since then, one of those months when we replaced the chimneys, floors and repainted (about 18 months ago actually).
I bought it in 2002 I think? Paid $77k, put in $4,000 of my own money.
I refinanced the next year to buy a second one, refinanced the year after that to buy a third. I now have 6. 2 old houses in ballarat, one in a town a little way out of Ballarat, a two bed unit in a bad suburb of brisbane, and 2 one bedroom flats within 12kms of Melbourne cbd.
tobe said: ↑
A tiny old house in Ballarat after I realised the lending I got the grant, then wrote to the state revenue office to say I couldnt find work and wanted to move out and rent the place. They let me do it and the rent I got covered the mortgageQUOTE]
Did you have to pay it back?Click to expand...
I made this post about my first house last year. - Still own it.
Purchased a run-down little drug den accross the border in NSW. Tarted it up with some paint, new kitchen and partially renovated bathroom. Added $40k value after one months work (all sweat equity carried out after work hours). We then used the $40k equity to purchase the next.
- Bought a PPOR for $72.5k in 1989.
- Had 10% deposit and got another 10% off wife's dad as loan (never repaid, but we offered many times with interest)
- Worked hard to pay it off.
- Bought a PPOR
- Did a dual occupancy (not worth it but learned a lot).
- Moved to Sydney bought new PPOR.
- Repeat step 3
- Bought IP
- Bought Another IP with strategy to use growth to pay off PPOR
- Sold IP and paid off PPOR debt
- Bought lots more IPs now "bad" debt free.
MY RULES FOR YOU:
- buy PPOR in CG growth location
- buy second as IP in CG growth location you want to live in
- save hard and pay down PPOR debt
- use growth in first PPOR and savings to equal second IP
- sell PPOR and move into IP
- buy more IPS
- KISS (keep it simple, don't dual occup or flip or get tricky)
Regards Peter 14.7
PS I am 44 and since 40 only worked three days a week and wife retired at 40, PPOR now worth $1M, no debt.
I bought my first place on the weekend the FHOG came in. Pretty dumpy looking thing but was affordable for me and not far from the olds. 18 months later I used it as equity to buy a townhouse closer to the city - the FHOG increased my initial property value by over 50K so was able to move on fairly quickly.
i don't have that first place any more but used it as a stepping stone. at that point I was in no way thinking about multiple property investing. I just wanted to move out of home and have my own place.
I remember making an offer for the property while sitting (hiding) in my car in my boyfriend's driveway - he wanted me to buy a different property. Looking back, the one he wanted me to buy would've been a better property in terms of potential growth,but being 24 and knowing everything I wanted what I wanted. He dumped me not long after anyway so I would've been stuck mowing a massive yard if I bought his choice. I was too busy "entertaining" and clubbing to worry about gardening.
charliebean said: ↑
I have first time buying paralysis, if anyone cares to share what type of property they first bought and where it took them I'd love to hear it for inspiration.Click to expand...Hey charlie,
I was about 20/21 yrs old, i had about 35-40k saved, was thinking about getting a cool car and mum took me around to look at some houses. I ended up buying one, i was never really interested in property investment. But after buying it flicked a switch and i started to do abit more reading and came across this forum. Now i have knowledge on investing in property and shares.
- First purchase was 4 bed 2 bath car port house in emu plains.
- where has it taken me? Setting a goal to reach financial Independence (goal broken down into steps required to achieve).
My basic advice would be to purchase a quality property (my definition of quality is good location, quality house)
I got sick of renting and got the bug to buy in 2007, unfortunately I couldn't get a loan back then and it was another 3 yrs before my partner and I bought a cheapish needs-quite-abit-of-elbow-grease type place out in Mayfield, NSW...funnily enough we still rent and it doesnt look like we'll move in anytime soon
My kick up the bum was really really really wanting to live in 'my own' place perhaps if you can focus on why you want to buy then that'll spur you on to put those thoughts into action
charliebean said: ↑
I have first time buying paralysis, if anyone cares to share what type of property they first bought and where it took them I'd love to hear it for inspiration.Click to expand...After reading about 20 books, went to a few seminars, we decided to take action.
I targeted Mentone as a cap growth area and after watching the area for about 3 months, bought a new town-house in a complex of 4.
The reason for this type of purchase was
a) uniqueness (only 4 in complex) and quality
b) depreciation and tax deductions
c) cap growth prospects due to location and amenities.
The rent return turned out to be not good; we were told we'd get $450p/w for the property, and based on the rentals in the area this was about right, but it was at a time when the rental market was flat, and that time this was considered a "higher end" rental. We had to rent it for $350p/w which was a huge hit to the cashflow for us. Oh well; lesson learned - don't buy top end as a first IP.
I didn't find it hard to pull the trigger though, because I had done some research and felt the figures were good enough, and the area was good.
Not to say I wasn't very apprehensive, but bravery is action from someone who is shoit scared but acts anyway.
So, do your research, check the figures and then trust your judgement - it WILL rent if it is a decent property.
Make sure the IP is built after 1987 for the Depreciation to maximise the tax returns - very important for that initial cashflow.
Bought a little house that I used to walk past on the way home from uni each day. It was $40k. Fixed it up, sold it for $80k. Then prices promptly quadrupled, I had no city property to offset the rises, and I effectively started again out in the country.
I'd saved a $14k deposit and was tossing up whether to buy a car or house. As I was 20, female and on low wages I chose a 2 bedroom unit for security and maintenance reasons. I rented one room for what 50% of my mortgage repayments were. (From applicants responses it was a bit under-rented). A year later my interest went up 3% so I followed suit and put my rent up to cover half of my repayments again. A while after that I had a guy pestering me to go out with him. I thought he was a complete tosser but eventually I gave in and went on a date with him. He gave me a 'Jan Somers' book that his ex-girlfriend had given him, obviously unread. Within weeks I realised he was the tosser I always thought he was, and we parted ways. I kept reading every book I could find on property and became semi addicted. Some of the older guys that I worked with and friends started buying properties too, thinking, 'if she can do it, I can do it too'. I was earlier exposed to some of the investing my grandparents had done. They invested mainly in businesses and commercial properties, which I hope to do in the future. When I was about 10 I would ask questions, my mum would tell me every third generation wasn't business minded and she was in that third generation, so she didn't really know much. Not everyone has the passion to invest rather than work till you're 65/75, so go for it!
Bought a small 4x1BR block of flats in a Vic regional city @ ~14% gross yield. (Should have bought the 3BR/1bath/2car HOUSE instead @ ~8% - a 1BR unit will ALWAYS attract a "certain" tenant)
This was after reading Jan Somers and some prompting from the old man. Still didn't get the whole "interest only loan" concept. Until about 5 years ago, didn't really have a plan; was just buying and selling here and there.
Saved up a bit of money and was deciding what to use it for. Read a load of books and commentary about IP and bought in what I believe to be a good location. A hospital in the same suburb, 2 good schools (Catholic and Elective), and 10mins drive to the beach.
charliebean said: ↑
I have first time buying paralysis, if anyone cares to share what type of property they first bought and where it took them I'd love to hear it for inspiration.Click to expand....
First house was purchased at 24 in country town for $97 000 in 2005 requiring minor renovations. Recently valued at $215 000 and renting for $230 per week
charliebean said: ↑
I would say we are still starting out... but our first place was our PPOR in 2008 in Perth. We made the most of the first home buyers grant and no stamp duty under 500K.
Later in 2008 we used savings to buy our first IP in Brunswick West in melbourne. We paid 320K for a 2 x1 in an old block of 6. The block down the road had been rendered and we thought this place could also have the same thing done and it would increase the value by at least 70K overnight (rookie mistake - the other owners have to want to do this too!). We had been reading API magazine for years and just decided to take the plunge (site unseen I might add). Sounds a little crazy but we did get building and pest inspections done. Spent $12k on a reno (probably a little much now in retrospect but it is hard when you are in another state). It is now worth $410.
We got the bug after prop 1 and really wanted no.2 while allot of people were unsure during the GFC. Although we didn't have much savings or equity at that stage so, rightly or wrongly, took out a small personal loan to cover the deposit and costs on an off the plan townhouse in Brunswick in 2009. We paid 465 and it is now worth 560. So our gamble paid off but it is costing us allot in interest repayments.
We will be converting our PPOR into inv prop 3 this year as we are due to settle on new PPOR/inv property in Sept and will be using some of our equity in the melb properties to fund a renovation.
We haven't really spent much time so far planning. We have just taken the plunge. So our next step is to put some really clear goals in place. In retrospect we probably should have done this first but at least we had a go.
My very first property was a run down old dump that I'm sure if there was too strong a gust of wind, I'd have lost the roof, if not the entire house!!! It was so bad all my friends said I was crazy to buy, but it was really cheap because old guy who sold it to me was going into a retirement home and besides he thought it was "sweet" that someone so young (I was 17) wanted to buy a house when at my age I should still have been playing with them (and my dolls)!!!
I purchased it for cash, which really helped a lot because when it came time to sell it (years later) as I didn't owe any money on it, and of course it having had great CG meant that I could buy two in its place!!! It snowballed from there and was boosted by other factors as well of course, but if we're talking just property, that's how I got the ball rolling!!!