Your Latest Purchase

Started the same way as most people ...using cumulated savings firstly while a schoolboy , then as a college pupil so you could purchase your first cash flow positive property while you are at university (part time university as was working too)
No both residential and commercial
I am a just a tadpole compared to some of my property mates ...one of my mates' father has (i was told) 3,600 properties.

 

Woweee congrats. What a retirement plan!

 

Bought a bland 1bed 1study unit in Ryde 6 months ago.
It's located alright to transport (train and ferry) and has a sweet heritage building in the middle serving as a communal chill-out area.

The approach 2 years ago was a typical lock in at prices back then and hope to hell the valuations and lending climate at settlement is favourable.

 

Sounds like an interesting one with the heritage building. PM me the address (but only if you want to, no pressure)? I was in Ryde half an hour ago.

 

Thank you Westminster first time we've ever built a home so may be sending out an SOS to the more knowledgeable people on the forum on occasion!

 

Sounds like a great buy! Have been sniffing around that area myself and have just signed the contract for one close by, will wait for it to be unconditional before I say too much more.
Would love to see how you're changing it to a 3 Bedder if you have floor plans and wouldn't mind sharing?

 

Hi All,

First time poster here.

Recently purchased an old house in Epping Sydney for $1m. Needs reno, we'll be throwing $100k reno into it but hope to end up with a decent PPOR in a decent suburb.

 

Nice

 

Thanks MTR - taking alot of cues from the knowledge base on this forum and hope to start the IP journey later this year.

 

Well done and welcome onboard to the Geelong bandwagon Hope to hear more updates soon!

Here is the floor plan. It's quite simple really - the place was a 3 bedder before but the previous owner knocked down one of the walls so lounge is now twice as big. All I'm going to do is to restore the wall and add a door then it's back to a 3 bedder

 

Looks good, huge yard too!

I had a thought on the floor plan which you've probably already thought about, but to give that open plan feeling from kitchen to lounge to dinning - see the rough mockup attached.

 

Exactly what I was thinking earlier! Except due to budget constraint may have to leave the open plan lounge to stage 2 later

Right now will be happy just getting bed 3 in place.

 

A couple of months back I settled on a dual income 800m2 corner block in Hillcrest. I bought the property before it was listed to the market for $375,000. The bonus is I can build a dual key property on the vacant half of the property. Current rent = $450pw.
I can get a 3+1 bedroom dual key built for $255,000. Once built, the rent of the dual key will be around $650pw.

Total spend = $375,000 + purchase costs + $255,000 + misc = $670,000 (rough)
Total rent = $450+$650 = $1,100 per week
8.5% yield once completed.

Scott O'Neill

 

Hi Scott, how do you find properties before they hit the market?

 

Now that interests me more than anything else. So, he must be buying one property every other day it seems. Kinda hectic even if I had a zillion dollars.

 

Do you get loan for building dual key or have to use up some equity?

 

I reckon do the open plan lounge at the same time as getting the third bedroom in.

 

Very underpriced for Epping!

 

I'm run a buyer's agency called Rethink Investing and we have a team of agents who spend hours every day networking with agents to get these deals before domain/realestate.com.au. We get about 5-20 off-market deals a day come through our doors at the moment. However, as you could imagine, we need to sift through a lot of crap to uncover the good ones lol!

 

I am thinking the existing house would reduce rent to $400 because of less backyard, but still over 8% yield plus depreciation. There's also approx $25k infra fee for new dual income build, not sure that's already added to the 255k construction cost?

Would you consider these calc of profit to be realistic if both dwelling (new and old) upon completion:
Existing house on approx 400m2, rent $400, worth 350k
New dual income build on approx 400m2, rent $650, worth 450k
Total $800k
Equity $130k ( profit before all other expenses)

I also purchased similar deal in LCC earlier this year. It's bigger in land size and more expensive, but I could squeeze a dual income build ( similar size and price as yours) plus another 3Bed dwelling and keeping existing dwelling that is currently rented for $490. Overall yields are similar..