Settled on our 1st INVEST Property
Hello everybody.
Well its been about 7 months since I stumbled across this site. Has been an enormous educational tool.
WE have just settled on our 1st investment property. We had initially purchased in the hutt in 2004 with 16k of our own money. This was to be home and we lived there for almost a year. It is now rented out so by techinally is our first IP, but I liked the heading of the thread ....
Purchaed that one for $157,500. Reg Val Sep 06 $250,000.
Bit of Background.
For 3-4 months we had set ourselves a target of buying renovating and onselling so as to get a big enough deposit to make any IPs cash flow positive. So we learned during this time that every man and his dog here in Wellington was doing the same thing. So we secured zilch, nada, nothing.
We were lucky enough to meet with investors in the city who turned out to be a godsend (obviously) Everyone who comes along to the Wellington deal crunching, breakfast meetings and so on take a bow
So to the present deal.
Changed tact about 3 weeks ago and looked for larger add value opportunities either already split into multi units or with the possibility to.
Found one that week!!!
Karori - City End. Croydon Street.
Purpose build home and income.
5 bed up, huge living area. drive on access, garage, carpad. wrap around deck/walkway. great sun.
2 bed down, outside grassed are. great sun.
Plan of action:
Spruce up top flat, new kitchen, use some of living area for new bedroom. general cosmetic paint up. new banister for deck.
Open up bottome flat kitchen/dining. Claustrophobic at the minute. As built on a hill access some extra space downstairs in the angle of the hill.
The Figures:
Currently
Top Tennanted: $525pw
Bottom Tenanted: $220pw
Garage Tenanted: $25pw
Purchase Price: $540,000
Government Value: $540,000
current Yield on purchae price is 7.4%. gross
All tenacies to expire in Jan. Refurb to be compleated by early feb. Tennanted in full by mid Feb.
New Rentals
Top flat $670
Bottom Flat $250
Garage $25
New Yield on purchase price will be 9% gross.
Have calculated that with all the bove figures unfortunatly our 2 investment properties are negativly geared still
To the tune of $24.45 per week overall
So we are controling almost 900k of property for $24.45 per week.
To make it even better got the agent to give us $1000 to close the deal.
So actually that shortfall per week is covered with this $1000 cheque for 40 weeks. And by then its nearly rentall increase time.
What a RUSH!!!!!! I 2 years we turned $16 of our own money into 900k of property.
I know I am going on a bit so will put the laptop away and do the hoovering
Best Wishes,
Niall
Well its been about 7 months since I stumbled across this site. Has been an enormous educational tool.
WE have just settled on our 1st investment property. We had initially purchased in the hutt in 2004 with 16k of our own money. This was to be home and we lived there for almost a year. It is now rented out so by techinally is our first IP, but I liked the heading of the thread ....
Purchaed that one for $157,500. Reg Val Sep 06 $250,000.
Bit of Background.
For 3-4 months we had set ourselves a target of buying renovating and onselling so as to get a big enough deposit to make any IPs cash flow positive. So we learned during this time that every man and his dog here in Wellington was doing the same thing. So we secured zilch, nada, nothing.
We were lucky enough to meet with investors in the city who turned out to be a godsend (obviously) Everyone who comes along to the Wellington deal crunching, breakfast meetings and so on take a bow
So to the present deal.
Changed tact about 3 weeks ago and looked for larger add value opportunities either already split into multi units or with the possibility to.
Found one that week!!!
Karori - City End. Croydon Street.
Purpose build home and income.
5 bed up, huge living area. drive on access, garage, carpad. wrap around deck/walkway. great sun.
2 bed down, outside grassed are. great sun.
Plan of action:
Spruce up top flat, new kitchen, use some of living area for new bedroom. general cosmetic paint up. new banister for deck.
Open up bottome flat kitchen/dining. Claustrophobic at the minute. As built on a hill access some extra space downstairs in the angle of the hill.
The Figures:
Currently
Top Tennanted: $525pw
Bottom Tenanted: $220pw
Garage Tenanted: $25pw
Purchase Price: $540,000
Government Value: $540,000
current Yield on purchae price is 7.4%. gross
All tenacies to expire in Jan. Refurb to be compleated by early feb. Tennanted in full by mid Feb.
New Rentals
Top flat $670
Bottom Flat $250
Garage $25
New Yield on purchase price will be 9% gross.
Have calculated that with all the bove figures unfortunatly our 2 investment properties are negativly geared still
To the tune of $24.45 per week overall
So we are controling almost 900k of property for $24.45 per week.
To make it even better got the agent to give us $1000 to close the deal.
So actually that shortfall per week is covered with this $1000 cheque for 40 weeks. And by then its nearly rentall increase time.
What a RUSH!!!!!! I 2 years we turned $16 of our own money into 900k of property.
I know I am going on a bit so will put the laptop away and do the hoovering
Best Wishes,
Niall
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