Your Latest Purchase

Discussion in 'Investment Strategy' started by MTR, 17th Jul, 2015.

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  1. SerenityNow

    SerenityNow Well-Known Member

    Joined:
    27th Nov, 2015
    Posts:
    267
    Location:
    Victora
    Just purchased a new ppor! Vic - 500m to station, 900m to beach, 700sqm with large layout conducive to houseguests (which we get)

    Over the moon excited, but possibly no new IPs for a while :(

    Financial markets, here I come...

    Edit to add: Melbourne western suburbs. We were up against another buyer from the south-east, fingers crossed we made a good call on this as beach-lovers are getting priced out of Brighton ;)
     
    Last edited: 8th Jul, 2016
  2. Heinz57

    Heinz57 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,948
    Location:
    Paradise
    Settled today on our retirement dream on a beautiful Moreton Bay sand island.
    250 metres from the ocean.

    And smooth sailing thanks to ASAP financial.
     
    MTR, gman65, Westminster and 3 others like this.
  3. apk

    apk Well-Known Member

    Joined:
    11th Aug, 2015
    Posts:
    222
    Location:
    VIC
    Congrats, where did you buy ?
     
  4. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    3,038
    Location:
    melbourne
    I suspect if western, (Williamstown, werribee south can't be (coz of the distance to train) , altona ) due to beach.
     
  5. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,755
    Location:
    My World
    Just purchased first multi units (4) in Atlanta, USA.
    This is a hold and purely for cash flow at 14% net returns, hard to achieve these returns with SFH (Single family homes) today due to prices soaring. The multi are hard to source.

    MTR:)
     
    Pentanol, SOULFLY3, apk and 10 others like this.
  6. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,386
    Location:
    Sydney
    Pictures?
     
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  7. Sam Yue

    Sam Yue Well-Known Member

    Joined:
    14th Jul, 2015
    Posts:
    163
    Location:
    Sydney
    Good timing. Trump is de-regulating the bank, which will make getting loan much easier. but saddly, I am not familiar with usa market and do not have the risk profile to go there yet...
     
  8. Phil82

    Phil82 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    47
    Location:
    Flinders NSW
    Just purchased our first investment property. Little 3 bedroom place on a 575sqm block in Lake Illawarra Nsw.
     
  9. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,386
    Location:
    Sydney
    What kind of rent can you get? any space for a granny flat? corner block? congrats!
     
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  10. sharon

    sharon Well-Known Member

    Joined:
    6th Jul, 2016
    Posts:
    441
    Location:
    Brisbane
    Congrats @Phil82 on your recent purchase.
     
    Phil82 likes this.
  11. Seal

    Seal Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    262
    Location:
    NSW
    Congratulations!
     
    Phil82 likes this.
  12. dmb1978

    dmb1978 Well-Known Member

    Joined:
    5th Nov, 2015
    Posts:
    353
    Location:
    ACT
    Just purchased again in Canberra, potential future PPOR. 4 bed, large garage, separate downstairs flat with great views. Can't wait to renovate but looking forward to good rental return until we can.
     
  13. sharon

    sharon Well-Known Member

    Joined:
    6th Jul, 2016
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    441
    Location:
    Brisbane
  14. dmb1978

    dmb1978 Well-Known Member

    Joined:
    5th Nov, 2015
    Posts:
    353
    Location:
    ACT
    Thanks Sharon, it was a bit scary - sight unseen but hopefully all good ;)
     
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  15. mcarthur

    mcarthur Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    761
    Location:
    ACT
    Wow - well done.
    Can I ask the yield/rental return? I have found getting a reasonable yield a problem when thinking about a Canberra IP.
     
  16. S1mon

    S1mon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    604
    Location:
    canberra
    so dual income @dmb1978 ?

    and yeh and what suburb!?
     
  17. dmb1978

    dmb1978 Well-Known Member

    Joined:
    5th Nov, 2015
    Posts:
    353
    Location:
    ACT
    Thanks Mcarthur. Not sure yet. I have the property manager going in to have a look this week. When i first had the offer accepted, there wasn't one house in the suburb up for rent - now there are 6 ahahaha - ohwell. I'm a bit of a numpty when it comes to yields - does anyone have a quick calculator guide - and do you just just use the gross rent and purchase price?
     
  18. dmb1978

    dmb1978 Well-Known Member

    Joined:
    5th Nov, 2015
    Posts:
    353
    Location:
    ACT
    Not sure yet S1mon. The house is two levels and they removed the internal staircase and separated the garage so they could rent it. It rented for about $320 per week (60m2 flat). The house above is about 208m2 with 4 bed ensuite and rumpus. The bank valuation quoted $730 per week rent but i think that's a bit high. Suburb is Fadden.
     
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  19. mcarthur

    mcarthur Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    761
    Location:
    ACT
    The gross yield calculation is simply annual income/value. So if the house is rented at $500pw, then $500*52wks = $26,000 income per year. If the house was purchased at $500,000 then the yield is $26,000/$500,000 = 5.2%.
    Canberra yields average out to about 4-4.5%. Of course particular properties can be very different. Sydney yields for example are down at 3.5% or so.
    There is no connection between negative or positive gearing and yield - there's nothing in the yield equation for loan or equity, merely total value; so a property could be 99% paid for and thus be highly positively geared or there could be a 105% loan and either positively or negatively geared.
    There's also no taking into account expenses.
    So "gross yield" is a merely a quick number to check on, not one that provides enough information to do much with.
    But I asked about it as it's a vaguely useful quick statement of income potential vs cost, and from that we can assume average costs, average loan sizes, etc.
     
  20. dmb1978

    dmb1978 Well-Known Member

    Joined:
    5th Nov, 2015
    Posts:
    353
    Location:
    ACT
    Thanks Mcarthur, if we rented for what the bank valuation said then it would be 5% but im thinking more like the 4.5% yield. If we break up into two separate properties then it would be much higher.