My Investment Journey so far

Hi Guys,
Thought I would share my investment journey so far for those interested or who are young and need some inspiration and to see what people’s thoughts are on what I should do going foward as I love hearing from like minded people and think it would be fun to hear people’s advice.
I’m 26 years old and have a full job that is quite volitile and short term but also pays extremely well, so property investment is my hobby on the side although I’d one day love to become a full time investor.

I first started my property journey very raw with no experience or mentors to help me. I read many magazines, internet articles and books to learn about different ways to go about property investing.

First Purchase (PPOR)
2013- 4 Bedroom Sandstone Villa in Unley Park ,SA (590m2)
Liked this property as it had been on the market for some time and overlooked due to one of the side walls needed underpinning, has plenty of ways to add value extending the back of the house and renovating the backyard which I will look to do in the future

Purchased it for 1.175mil including stamp duty now worth 1.6mil .
Is now entirely paid off (thought I’d get rid of my bad debt before I’d begin investing, as I said I was pretty raw early on and had no idea )
Costs-1.175mil
Current value- 1.6mil

$425k equity

2nd Purchase (IP)
2016- 3 Bedroom Weatherboard home in Essendon with a granny flat on the back of the block (460m2)

Decided to throw myself in the deep end and buy this block as a Developement site for 2 stand alone houses and was able to get the purchase off market for 1.1mil including stamp duty
(100-150k below what I thought it was worth at the time due to it being a flat corner block 200m from a train station in a nice quiet pocket of the suburb)

Was able to get a 12 month settlement which helped with holding costs as I needed to buy myself time to get the plans and drawings through council
(I must admit I hired a project manager which was the smartest thing I’ve ever done because he has stepped me through the process and educated me the whole way).

Council approval took ages but eventually it was approved for subdivision
2 , 4 bedroom , 2 bathroom double story houses with a double garage on each block
$380k each to build

I was able to sell the original house and cabin to a company for 20k in exchange for them clearing the site which helped save on demo costs and I’m building them for about 380k each

At this point I expect them to fetch $800-$850 each a week in rent (80k for both p.a) and be worth 1.3mil mil as a conservative estimate but more likely 1.4-1.5 by completion of build

Costs-1.1mil Purchase including stamp duty
$760k build including all plans, site tests etc
$20k holding costs
Project manager-free
Total- 1.88mil

Value-2.6mil to 3mil
Equity- 720k-1.12mil
Rent for both dwellings-80k p.a




3rd Purchase (IP)
890m2 block in Camden Park, SA
Purchased this block for $800k which sounds like a lot for Adelaide but the numbers stack up
This block was appealing as it was zoned within the urban growth corridor along Anzac Highway so was able to get plans for 3 houses on it.
Currently in the process of building the back 2 houses!!
Keeping the original 3 bedroom 1950’s sandstone at the front of the block and spent 5k renovating it (paint, blinds, pendants).
The kitchen and bathroom are pretty much new so not much needed doing.
At the back of the block is a park or reserve so was able to design 2 double story , 4 bedroom, 2 bathroom houses each with a carport.
The front house is currently being rented out for $400 a week (20k p.a) and worth 550k ,the back 2 houses will cost 260k each to build but will fetch $500 each in rent a week (50k p.a for both houses) and will be worth $550-600k each at the completion of the build

So back to the numbers
Expenses :860k Purchase including stamp duty
Reno-5k
Builds for back 2 plus demo and holding costs costs: 550k

Costs: $1.415mil
Value of overall project: $1.65 -$1.75mil
Equity- $250k-$350k
Rent- (70k p.a for all 3 dwellings)

In total I now have the houses I live in paid off
and 5 IP’s worth a total worth of
5.85 - 6.35mil
They will bring in $150k p.a in total in rent

These 5 IP’s are all negatively geared for tax purposes due to my job and financial situation.
I must stress that I knew nothing when I started 5 years ago but have managed to self educate and learn off project managers, builders and other like minded ppl along the way. I’ve been strict on my spending helping me accelerate my portfolio. Not bad for a 26yr old with no qualifications or experience in the industry.

I hope you’ve enjoyed reading my journey and if anyone has advice on what they think of my story or advice on what they’d do next please comment as I’d love to hear from you.
Cheers East Man

 

good job east man.
So you were 21 when you purchased a $1.17M property. When i was 21 all I thought was which car parts I could spare some money on.

 

It sounds stupid but I’m not trying to brag and didn’t have rich parents, I’ve worked Very hard to get the job I have and also saved a big deposit early instead of blowing my cash like others around me

 

What is your job role if you dont mind me asking?

 

I play sport that’s all I’ll say ..

 

Congratulations mate huge achievement! Alot of people our age would of blown that wage on all the wrong stuff, well done for being disciplined

 

Thanks Frank I’ve read your starting out with your journey to. Congratulations on your purchases so far !

 

Sounds like AFL or a cricketer based on your writing skills and the state's you've focussed in.

Well done! You've done well not to **** it against the wall, and you've found a great resource in some of the people here. All the best in your journey!

 

Definetly not afl or cricket I wish, but thank you very much

 

Professional poker player?

 

Thanks East Man!

 

Surely an AFL player then haha

 

Cool man. When does your mortgage broking business go live? Will you also be doing YIP and SPI?

 

hey at least u have somethign to show or mess around with.. at least its a form of tranportation for you + 1 or + 3 depdning on your car.


the rest of us ****** it up the wall or breathing in something that probably kill us one day and have nothing to show for it ..

HAHAHA

 

haha..I did that too but to a far lesser extent to the people around me. messing with cars can be a really expensive hobby.. i now have learnt my lesson in investing in appreciating assets and delayed gratification.
aim is to retire at 50 and buy a gtr

 

Good effort.

Sounds like you are being sensible and making the most of your position. No idea what sport it is, but certainly some other people in your position could do with having something outside of the sport to keep them busy, plus give them something when they stop playing.

Cheers,
Inertia

 

My money's on e-sports.

 

make sure u share that pic of a GTR..

where and how.. i've been watching e-sport for years.. just dont know how u can invest in esport outside gambling..

 

well done on your journey!!! holy moly that's alot of numbers for someone so young...

can we play a game to guess which sport it is - it's a team sport based on your comments , you've built a great team around you so must have had good recommendations , and you can string multiple sentences together so rules out the rugbys...

football???

 

soccer