Join Australia's most dynamic and respected property investment community

So, we bought a property...

Discussion in 'General Property Chat' started by Bayview, 1st Jan, 2016.

Tags:
  1. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    As you all know; we had to sell the PPoR a few months ago - due to horrible financial circumstances caused by the workshop going so badly and almost sending us broke..

    Anyway; debts all cleared and a bit of cash in the Bank as a result, and the good wife/Minister for war and I have been on the look-out for the next PPoR location ever since....not expecting to find anything soon, and prepared to wait for just the right property in the right location...

    Only about 6 very select streets in our little backwater will be considered..perfect location, close to beach and shops, hopefully an older house to do up - is the criteria, and hopefully around the $600k range - probably a bit of a dreamworld mindset though...more like $700k for a dump.

    These streets are being mauled by developers currently; paying premiums to get the larger blocks and the premium locations to build higher-end townhouses on.

    Occasionally the higher-end house goes on; always plus $1.5mill pricetags after completion.

    The streets with the bayviews are out of the question for us now - we will probably never be able to afford the spectacular view locations in our area again (the reno costs and/or rebuild is far too great due to slope), but the nearer to the beach/shops etc streets are a possibility - cheaper entry, but very sought after as per above.

    Anyway, have seen a few come and go; too far from the beach, but the right street, or sold for too much due to subdiv/dev potential and out of our price range, etc.....

    So, fast forward to the day before yesterday; a 785sq/m block in one of our earmarked premium streets came on the market at 4.30pm - we saw it on r/e.com. Asking $650k+.

    House is an old, run-down 3x1 mid-century shocker. Has a tenant in it for the next 2 years at $1412 per month. I'm thinking a do-er upper and extension to a 4x2, plus pool.

    The wife called the agent immediaitely, organised an inspection for the next day (yesterday) at 10.00am - no photos taken yet, or even a sign out the front.

    We had a look, and put in an offer at 11.00am that same morning for $655k. (A similar property 50 metres away in the same street sold at auction for $655k in Aug, and will have 2 townhouses on it within a year....slightly smaller block too, and with the wrong orientation - east to west with backyard facing east. Ours has the same east to west, but back yard faces west and northerly light during the middle and later part of the day....ideal for the pool aspect.

    A bit of back and forward from the agent and the Vendor, and we sealed the deal for $660k by 12.00pm.

    Signed the papers at 2.30pm, Vendor signed at 3.15pm.:cool:

    The property was not even on the market for 24 hours!! The agent (who is one of our customers and a terrific bloke) made a very easy commission. I'm glad for him.

    We will have to bull-doze the house as it turns out - too many issues to justify a reno - circa $250k by my estimation, so the plan is to build a Metricon style house for about $250-$300k (already been sussing out the floorplans) in 2 years, chuck in a pool, etc when our lease and the tenant's lease ends, and we have saved a bit more dough.

    That is the fastest sale I have ever done. Paid premium price, but in a premium street..hopefully the longer-term value will reflect the commitment.

    Scary, but what an exciting day!!

    So; is that preparedness meets opportunity, or stupidity?
     
    Last edited: 1st Jan, 2016
    Beyond Wealth, Azazel, Mooze and 27 others like this.
  2. Vicki S

    Vicki S Active Member

    Joined:
    19th Jun, 2015
    Posts:
    27
    Location:
    Sydney
    Congratulations!
     
    Bayview likes this.
  3. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,130
    Location:
    NSW
    Congratulations!! :)

    Remember to peek other builder plan as well. Have just finalised our choice for Melbourne and they ended up quite similar, between the 'cheaper' builder and the more luxury one.
     
    Bayview likes this.
  4. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,589
    Location:
    Adelaide, SA
    I'm excited for you mate. You seem to keep pushing on when other things around you aren't going your way.

    Pumping money in for deposit etc, does that leave enough over to upgrade your workshop to the rego compliance part you've been talking about?
     
    Bayview likes this.
  5. JenW

    JenW Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    368
    Location:
    Perth, WA
    Congratulations Bayview!!
     
    Bayview likes this.
  6. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,925
    Location:
    Sydney
    Whoo hoo! Congrats @Bayview!
    Don't you just love this time of year?
    Great time of year to get onto an opportunity :)
     
    ellejay and Bayview like this.
  7. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,694
    Location:
    Sid en e - olympic city
    That is no good that you have had that happen, but you have turned a corner and probably better to get straight into it, hope it all works out well for you.
     
    Bayview likes this.
  8. balwoges

    balwoges Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    188
    Location:
    Lake Macquarie
    2016 is going to your year, all the best ... :)
     
    Bayview likes this.
  9. kamchatsky

    kamchatsky Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    483
    Location:
    Sydney Northwest
    Congratulations @Bayview, I hope this property will work out for you!
     
    Bayview likes this.
  10. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    Just curious, as im a bit of a quick buyer of properties i see value in,have you organised the finance ready to go(if it will be mortgaged), or at this point obtain finance with a clause in place.Good on ya for jumping back in, lifes not all about just paying bills.
     
  11. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    We have already talked to our MB previous to this purchase - about buying another workshop/petrol station property actually, so already have an unofficial borrowing capacity, and a fair chunk above what we would need to borrow for this property.

    We went with our $655k offer, and a 30 day settlement! (to try and get it over the line - it seemed to have worked).
     
  12. Beanie Girl

    Beanie Girl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    243
    Location:
    Melbourne
  13. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    Yep; despite our turnover having dropped so much; now that the PPoR has gone and all debts have gone (and interest bills) we are starting to see an accumulation of funds at the end of the month for a change after the bills are paid...

    We have an investment LOC still set up against our IP, so I can borrow some of that for the roadworthy set-up costs, but I'm hoping to fund it out of takings over the next few months - it's only about $5k-$8k for set up, so the LOC is not going to kill us, but at this stage the less debt and interest the better.
     
    EN710 likes this.
  14. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,106
    Location:
    Sydney & Adelaide
    Congrats BV!
     
    Bayview likes this.
  15. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    Good question.

    Our previous PPoR had such magnificent views, but was still within "striking distance" to everything, that to do it again with an "inferior" product would...we can't do it mentally.

    That Arthurs st property has decent views, but is more west facing, too far from everything, not in a closed cul-de-sac, on the high side of the road so all the view is at the front with no privacy from the street, next door neighbor's roof and power-lines to look at - all the opposite of we used to have, basically.

    Unless we can go back to what we had before; we don't want to revisit the hill with views again.

    And, the build cost for the house would be in excess of $900k to reproduce what we had before once you add in planning and permits, architect fees, pool and spa, etc - not interested, and can't afford that.

    The block we have purchased is 300m to the water, and less than 1k to the cafes and shops, dead flat and we can put a 30 square house with pool on it for about $300k
     
    Last edited: 1st Jan, 2016
    Wukong, Beanie Girl and EN710 like this.
  16. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,130
    Location:
    NSW
    One level or two level? Would be interested to see the floor plan and pool costing... (For my own build....)
     
  17. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,939
    Location:
    Brisbane
    Contratulations Bayview. You deserve some good luck for a change. I'm glad for you.
     
    Bayview likes this.
  18. Beanie Girl

    Beanie Girl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    243
    Location:
    Melbourne
    Ahhh, I see... sure, I understand.
     
    JenW, Bayview and EN710 like this.
  19. WattleIdo

    WattleIdo renovating Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,815
    Location:
    Central West NSW
    Must've felt right. Good on you. A great way to finish the year and start a new one.
    Hope those dollars keep accumulating.
     
    Bayview likes this.
  20. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    Bayview likes this.