(Maybe in the wrong section - mods, if I need to move it, please advise - maybe should be coffee lounge)
Not sure if this will interest anyone, but I'm going to share anyway!
Going through some old paperwork recently, I dug up the attached document - the letter of offer for my first IP!!
Block of 4 1BR units, purchase price $84,000, in a regional country town (city now). They were let @ $60/week - a gross return of about 14%!!!
I had the $8,400 deposit in cash, which I'd saved up from working my summer holidays and had probably just finished my first year of full time work. Technically, I shouldn't have got finance with only 10% deposit, but Dad's business banked with the same bank, and he "spoke to the bank manager for me". I guess this was back in the day that bank managers were actually bank managers!!
Looking back, I remember wondering why this thing cost me every year - but look at the terms! 12 years!! P&I! That's about $825pm; the $960pm rent, less PM, insurance (x4), water (incl. usage), repairs (they were 40-ish years old) didn't quite cover it.
So here I was, a young, wet-behind-the-ears landlord! At 22! I had NO idea. (In fact, the first rental statement I got had a hand-written note from the PM "Congratulations on being our youngest landlord" - wasn't I wonderful!)
Since sold them for a small profit (1 step backwards to take 2 steps forwards) but aaah, the nostalgia. And of course, the old "if I knew then what I know now'" syndrome!
Not sure if this will interest anyone, but I'm going to share anyway!
Going through some old paperwork recently, I dug up the attached document - the letter of offer for my first IP!!
Block of 4 1BR units, purchase price $84,000, in a regional country town (city now). They were let @ $60/week - a gross return of about 14%!!!
I had the $8,400 deposit in cash, which I'd saved up from working my summer holidays and had probably just finished my first year of full time work. Technically, I shouldn't have got finance with only 10% deposit, but Dad's business banked with the same bank, and he "spoke to the bank manager for me". I guess this was back in the day that bank managers were actually bank managers!!
Looking back, I remember wondering why this thing cost me every year - but look at the terms! 12 years!! P&I! That's about $825pm; the $960pm rent, less PM, insurance (x4), water (incl. usage), repairs (they were 40-ish years old) didn't quite cover it.
So here I was, a young, wet-behind-the-ears landlord! At 22! I had NO idea. (In fact, the first rental statement I got had a hand-written note from the PM "Congratulations on being our youngest landlord" - wasn't I wonderful!)
Since sold them for a small profit (1 step backwards to take 2 steps forwards) but aaah, the nostalgia. And of course, the old "if I knew then what I know now'" syndrome!