Join Australia's most dynamic and respected property investment community

When was your first purchase?

Discussion in 'Investor Psychology' started by joel, 27th Jun, 2015.

  1. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    How old were you when you bought your first property?

    What did you buy and why - and what was your gross income?

    Interested to hear how people started out!
     
    Catalyst likes this.
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,596
    Location:
    Adelaide, SA
    2004 at 21, bought a 197k place in Clarkson WA. My income at the time was 27k per year. I lived in it for a while to get fhog and cgt exemption while I painted and landscaped it.

    Sold for 370k in 2008. Sorta wish I hadn't as it'd be worth maybe 425k today. But that's the way life's curveballs come sometimes.

    Just do what you can when you can :)
     
    Leo2413, Catalyst and Toon like this.
  3. Teddy

    Teddy Active Member

    Joined:
    19th Jun, 2015
    Posts:
    37
    Location:
    Sydney
    1st in 2000, I was 27 and we had 2 kids, current PPOR. 3 bed, 1 bath old cottage on 850m, it was the closest suburb to work we could afford, on a train line and ripe for renovation.
    I was on mat leave so about $50k household income that year.
     
    Toon likes this.
  4. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    21! So young!

    I think you made the right choice selling, you only missed out on about 15% gain over the last 7 years.
     
    clint05 and Azazel like this.
  5. Toon

    Toon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    181
    Location:
    Victoria
    5 acres for $10k in 2000 when I was 28. Was on $14 p/hr part time, can't remember gross annual income. Had been on market for a while at $25k & I low-balled at $15k, which was accepted but then I pulled out in the cooling off period as I found out it couldn't be built on. Ended up making another offer of $10k thinking perhaps in future things may change. Bought it on a personal loan with NAB & had to have my Dad go guarantor. Over the last 2yrs, the adjoining property & the next have both been issued planning permits & I am now waiting for sales contract to go unconditional (provided buyer can obtain permit) @ $150k. Fingers crossed & trying not to count chickens before they hatch!
     
    joel and Jess Peletier like this.
  6. HD_ACE

    HD_ACE Game-Changer Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    450
    Location:
    Perth
    2009 @ 21. Was a place to live and cost 197k. Was/is in a pretty bad area but bought because thats all I could afford as close to work as possible. Actually it was $50 over my borrowing limit of $196950. Was on aprentice wages around $15 hr. Just wanted to get into the market so I did.
     
    Kael, Toon and joel like this.
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,781
    Location:
    Perth WA
    2003 @ 25 - $170k house in Mt Richon. We bought it as a PPOR and lived in it for a short time but was almost always an IP as we mostly lived up north. Hubby was on about $40k, and I wasn't working as I'd just had my daughter. Sold it in 2006 for $380k. It's still worth about the same, so very glad we sold when we did. It was also not a very practical IP - too much maintenance.
     
    Toon likes this.
  8. jim1964

    jim1964 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    674
    Location:
    At tha beach
    1989,rates at 17%, 1st home newly married.Melrose Park S.A.Bought for $77,000 before it became a trendy area,i was earning about $300 a week in those days.
     
    Last edited: 29th Jun, 2015
    Toon likes this.
  9. Jimmy Foxx

    Jimmy Foxx Member

    Joined:
    18th Jun, 2015
    Posts:
    20
    Location:
    North Shore, NSW
    26 years old in 1999, earning 36k a year. 2 bed unit in Oatley NSW for $230,000. Went halves with a mate, lived in it and renovated, sold in 2004 for $365,00.
     
    Toon likes this.
  10. Mystery

    Mystery Member

    Joined:
    18th Jun, 2015
    Posts:
    7
    Location:
    NSW
    Geez, .. I feel like a fossil after reading the previous posts.

    First purchase - bought a block of land in Edgewater (WA), ... It was around 1978/79 and I was about 18 or 19 years old. Sold it a few years later for reasonable profit.
    Reason I bought - I received a decent signing on fee to play professional sport and figured property was a good idea.
    How much was I earning at the time. Not as much as I would be if doing the same thing today .. :)

    Mystery
     
    Toon likes this.
  11. citystar

    citystar Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    167
    Location:
    QLD
    My first purchase was when I was 26 years of age, it was a single bedroom & bathroom apartment in Southport that was neutrally geared from day one. After a quick reno, the increased rent I was able to achieve had it positively geared and even more so since regular rent increases whenever the market has allowed it.

    I purchased it because it was cheap and nasty which is what I was looking for. The vendor was keen to sell as they had already purchased their dream PPOR interstate and the property had gone stale on the market. I knew Southport had government approval for infrastructure upgrades so I saw potential capital growth in the short/medium term. I purchased an apartment i a secure lockup complex with a secure car park with no gym/elevators/sauna etc so the body corp was minimal. It was close to the hospital, university, shopping centre, local transport and public/private schools.

    At the time I purchased it I was earning $42k per year.
     
    Toon likes this.
  12. jordy

    jordy Active Member

    Joined:
    22nd Jun, 2015
    Posts:
    30
    Location:
    Brisbane
    My first purchase was for land in Augustine heights in 2013 age 25 at time. Sat on the land for a bit then built our first PPOR on it in 2014. On around 80k at the time. Now that we have our dream PPOR the investment journey begins!

    The reason I bought is that we loved the area and we were able to build our dream home being away for the city to start our family.
     
  13. Gingin

    Gingin Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    94
    Location:
    Sydney
    My first was a house in Botany in 2000. Overpaid at auction. Was a termite trap. It was a knock down.

    I was 24. I was earning $17 / hour . Had no pre approval, no building inspection, no idea. Almost missed settlement. Paid 381

    Glad I did it though. Hung onto the old girl , after a quick Reno has been a solid little earner since.
     
    Toon likes this.
  14. Sonamic

    Sonamic Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    954
    Location:
    Sunny QLD
    Signed for the land day after my 32nd Birthday. $89,000. Built a 3 bed 2 bath slug house on it for $102,000 and moved in October 2003. FHOG, no Stamps, first loan ever. $26,000 Deposit. 165k Loan. Bought because I was newly single and wanted to own a house rather than rent someone else's. I was on mid 40k.

    Sold March 2005 for 320k. Should've Leveraged off it and started Investing back then. Blah blah blah.
     
  15. Art Vandelay

    Art Vandelay Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    77
    Location:
    Australia
    OTP apartment settling this week, signed the contract just over a year ago at age 22. Combined income of partner and I ~140k.
    Reason we bought was liked the product/developer, good area and at the right price, plus the fhog and stamp duty concession.
     
  16. No Probs

    No Probs Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    117
    Location:
    Perth
    First purchase was January 2014, purchased a 2 bed unit in Mosman Park, Perth for 375k. I was 22 on about 78k.

    Knowing what I know now after stumbling across SS I probably wouldn't buy the same property again but happy with how it's gone sofar, was able to draw 43k equity out of it in November 2014 to assist with my second purchase.
     
    Last edited: 27th Jun, 2015
    Jess Peletier likes this.
  17. roberto

    roberto Member

    Joined:
    22nd Jun, 2015
    Posts:
    16
    Location:
    Australia
    In 2001, a 2B/1B/1C appartment while leaving overseas for $70K. I was 24 on $12K per year.

    First in Australia was in 2006, a 2B/2B/2C appartment in Syndey's Upper North Shore for $315K. I was 29 on $80K.
     
    Toon likes this.
  18. Banjorellie

    Banjorellie Member

    Joined:
    19th Jun, 2015
    Posts:
    8
    Location:
    Perth
    25 years old in 2010, I bought a 1 bed apartment in Perth. At the time my income was about $54k.

    I still have the apartment which has been a great cash flow positive investment but not a great deal of capital gain. Hoping to work on the capital gain side of things in the near future! ;)
     
    Toon likes this.
  19. dan_89

    dan_89 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    116
    Location:
    Melbourne
    First place I bought when I was 21 back in 2011 for $370k.

    Bought a 3-1-1 unit in Boronia, Vic which was around 5 years old. Has been rented ever since. Now worth between $450-480k based on comparables.

    At the time was earning around $50k (with a heap of overtime on apprentice wages). Managed to save a total of $60k during the first 3 years of my apprenticeship and thought I'd better do something with it rather than spend it all on a nice car (which I nearly did!).

    That started my love for real estate and property investment!
     
    Toon likes this.
  20. Kael

    Kael Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    277
    Location:
    Sydney, NSW
    First place I bought was a block of land in a new estate, then built a house on it. Total price was $305k. 4-2-2 house. I did this in 2011 (21 years of age), and I've learnt MANY things since doing it. I was on a salary of around $50k.
     
    Toon likes this.