Brand New Investors

Discussion in 'Introductions' started by The Novice, 7th Jul, 2017.

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  1. The Novice

    The Novice Member

    Joined:
    27th Feb, 2017
    Posts:
    11
    Location:
    Sydney
    Hi PC,

    I thought it was time to give back after using this sensational tool for the last 18 months.

    We have officially become investors buying our first IP in Keperra QLD this June.

    We structured our loan/s by using the equity in our PPOR in NSW to pay the 20% deposit + Legals and SD , avoiding LMI on a 5 YR IO loan and a Second loan against the IP for the remaining 80% also on a 5YR IO Loan with Mortgage Choice.

    Mortgage choice branch were great to deal with but Macquarie Bank who issue the loan where painful. We had to extend cooling off 3 times due to “system issues” which was appalling and stressful.

    We inspected 15 properties over a weekend in person as well as online for 6 months in that suburb alone. We made an offer on the property below the Median of the area and allowing for improvements ie 10K to increase serviceability for the rental market (paint/blinds/fans/Floorboards/Flyscreens etc).

    We only put myself on the title for the ownership of the property so all tax deductabilty will be against my income.

    After 1 open home we have got tenants moving in giving us approx a 3.7% yield which overtime will hopefully increase.

    So all in all, in 8 weeks we went from looking at properties to owning one and having it tenanted.

    Thanks to all @ PC for your experience and knowledge.

    Regards,

    The Novice
     
    Gypsyblood, samiam, pwt and 1 other person like this.
  2. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    Congratulations - it's an exhausting and nerve wracking time, but hopefully it will all now start to pay off.
     
    The Novice likes this.
  3. The Novice

    The Novice Member

    Joined:
    27th Feb, 2017
    Posts:
    11
    Location:
    Sydney
    Thanks KayTea now it's up to the market to do its thing I guess
     
  4. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    Yep, and your tenants, and your PM....... (I hope that both of them are good - it can save you a lot of stress and time).
     
  5. fols

    fols Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    737
    Location:
    Sydney
    Congrats on the purchase. Yield looks very low for the area. Are you happy with that?
     
    Ed Barton likes this.
  6. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    1,173
    Location:
    Sydney, Brisbane
    Congratulations! That area should do very well..
     
  7. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    @The Novice
    That is great commitment flying up and purchasing. Congratulations.
    Good work on sticking to your criteria and monitoring the suburb. The more clarity on what you are after, the quicker the decision making process.