First IP

Hi Team - I've finally bought my first IP

7 Terrigal Drive Patterson Lakes Vic 3197 - House for Sale #128982222 - realestate.com.au

I engaged the Empower Wealth team for a property investment plan and also used the buyers agent services. While I've been actively reading a lot of posts here, as well as reading key books on the subject, I still felt I needed some guidance with buying my first one and found the investment in the service worthwhile.

Anyhoo - just thought I'd share!

 

Hi @Mccuzzle
Congratulations on your purchase
Where to next?

 

Thanks! So the plan is to park all rental income and surplus cash in the offset and save the deposit for the second IP in 12 months time.. There's a total of 4 IP's in the plan - one each year for 4 years Next one will probably be in Brisbane...

 

Congrats

Cheers

Jamie

 

Pretty decent looking property on a decent piece of land. Congrats!

 

Congrats @Mccuzzle what's the plan for the longer term i.e. looking to keep accumulating post 4 years and 4 properties. Aim high consider the time-frames for the goals although also interested in hearing your thoughts on Empower, they do a decent podcast

 

Congrats! Nice growing area.
Empower wealth from my knowledge do like a 1x capital gain ip 1x cash flow ip and so on, kinda formula right?

 

Thanks Jamie

 

Thanks! The building inspector gave it a 92/100 so minimal work to be done before handing over to the property managers. The lawn needs a little bit of love and some minor patch work inside. Given the location, it could be a potential rebuild in years come but not in the plan at the moment

 

Thanks The plan will be to get the 4 going and then aim to have the mortgages paid out as quickly as possible before retirement (around 10-14 years). There may be capacity for a couple of cash cows after this if we wanted to. I invest in other areas as well so this is helping me diversify. Empower have been great - the plan was very comprehensive and help map out the path to this and the other future properties. The team respond really quickly to any questions and help explain things in simple terms.

 

Thanks Frank. Pretty much but there's a lot of work that goes into determining that (our plan was over 130 pages). I've studied financial planning and there are parallels to a Statement of Advice or Financial Plan but focusing on property as the only asset class. It takes into consideration our age, current position (incomes, assets, liabilities), retirement goals, risk profile etc (all the usual financial planning aspects) and derives a plan. They are transparent in the approach and guided us through it all. It's a worth while exercise in my mind. Oh and no, I don't work for them for get any kick back for saying nice things!

 

Nice, wish you all the best!

 

@Ben Kingsley visits frequently .... not really but hit him up for a discount

 

Are you sure you have cash left from the rent? To me it looks like high neg ger.

 

To classify - the surplus cash I'm saving from other income. I'm putting that into the offset along with the rental income.

 

Congratulations. Can't go wrong with Patterson Lakes. I have 2 properties there and up until November last year had 3.

Effectively it appears you have bought a $700k place that is within a stones throw to $2m+ properties.

 

Well done!

 

Congratulations.
Nice local

 

Congratulations, perhaps down in time you will rebuild into multi million property or put two on the land. I notice the yield is pretty low about $3.48% so hopefully you will add into your offsets regularly?
I also like that you have a strategy and a plan as lots of investors forget that is crucial in order to advance beyond 2 IPs, where 90% of investors own only 2 IPs.

 

Pretty much! We went down for settlement and had a look around. There's a few places being knocked down and new ones built. That might be the longer term plan but for now I'm happy to get underway as my first IP.