poor old pensioner just bought first IP

Datto what are the druitt opportunities atm? What sort of houses are available and at what price? What to look for? Large blocks? Dual living? What's a model example ofa sound buy? Not buying now but I'm interested generally.

 

Hi and welcome @shimmy keep us posted on how you go.

 

Thanks for the welcome D.T. I sure will keep you updated. I just had the property appraised after finishing the repairs which cost $25k and I'm out of pocket about $5k to $10k not including stamp duty... so worst case about $16k out of pocket (incl stamp duty). What are your thoughts on that please DT? Do you think that is a lot of capital to catch up on in Elizabeth North? Thanks in anticipation. Any one elses thoughts appreciated as well!

 

welcome Shimmy.

I'm also from Canberra, but recently moved to Adelaide. I have investments in both cities.

The yield is very good in the outer Adelaide suburbs, but obviously there is a risk trade off. Make sure you pick your tenants carefully and you have insurance.

 

Hi Nemo and thanks for the welcome It's early days with the tenants in the property (just over a week) but the property manager seemed to suss the applicants out pretty well and the appraiser reported back to me today that the place is spotless, in excellent condition and that the girls were taking a lot of pride in the place so hopefully all will be good. Yes I have landlords insurance.

How are you enjoying living in Adelaide? Did you invest in the Northern suburbs as well or elsewhere?

 

Welcome on board @shimmy

This site is a living breathing encyclopedia on property investment,read up and pick out the gold nuggets that work for you and your strategy.

 

No offense intended but that sounds like an incredible amount of money. What kinda things did the property need? Not sure I've spent that on my ones up there combined.

 

Hi Coota, thanks for the welcome will take your advice, cheers!

 

I think houses priced in the 3s may be a goer. They'll need work but if you can do most of it yourself then all the better.

For bigger blocks (800sqm) under 500K check out Manila Rd.

 

no offense taken and I suppose it is a lot of money although I wasn't sure at the time. seemed reasonable to me. It needed a new roof, new scotia, barges, gutters, air cond, upgrade electricals, digital antenna, new powerpoints, new light fittings, seal bathroom tiles, replace washers, paint all ceilings and bedrooms and bathroom, replace cracked window, new toilet ummm sure there are other things but that's the most... I still have lots I want to do to the place later on...So anyway, back to my question...in your experience, is that a lot of money to make back on capital growth for the Elizabeth area?

ps - also am unsure of prices of trades and works etc and went in blindly so lots of learning to be done.

 

@shimmy what was your purchase price?..if you wish to share

 

$160k

 

Loving living in Adelaide, its a fantastic city. Ive lived in Canberra most of my life, so its a big change (a bit backwards in some ways). Jointly, we have 7 properties in Adelaide and settling on the 8th this week. They are a mix of north, south and beach.

 

So I think the consensus will be spending 15% of your purchase price on a reno in this area may mean you have over capitalised,others here are experts on that area and without knowing the exact property its hard to tell if you brought it under market rate.
Under 5% of purchase price on a reno would be your targeted spend I would imagine in this area..

 

Sounds good! Congratulations on your investments too and your new property. I will need to wait for a bit before I look to invest again. Being on the pension means I really need to look at cashflow to service these loans in the reduced terms and limits given to older people. Much harder but then again I had no idea the banks would even lend to me being on the pension! So whoo hoo! making hay! haha

 

Yes thanks Coota, I suspected that I had overspent. Particularly going through the threads here and seeing the percentages that others have spent on their properties. Aah well, live and learn!

 

Hi Wylie and thanks for the welcome and your thoughts on my property and spending! I have read a few of your posts and noted that you get your properties up to scratch and I felt better about doing that with mine! Thanks for the encouragement. Looks like I am following your strategy too

 

I wouldn't worry about counting the stamp duty. That will take care of itself when you sell the property as the cost base for CGT.

So you paid $160k, spent $25k ($185k) and now its been valued at $180k? Is that right? Was that a bank valuation?

What is the rental yield?

What is yield How to calculate rental yield - Mortgage Choice

 

Hi Markson, just about right Ok re not counting the stamp duty, thanks. Yes bought for $160k in June this year, spent $25k and real estate appraisal (different to the selling agent) appraised between $175k to $179k this week. So not a bank valuation I'm afraid.