And so begins the search for IP#2

[Belu]

Ok, so here we go. Time to take Mr Rudd's money and go looking for IP#2/PPOR for 6 months.

It starts tonight with a viewing at an Essendon 2br unit that was passed in on the weekend. Followed by a search around the Footscray area with a local agent who is taking me to at least 2 units, if not more. First one is in Footscray west a 2 br unit, next is a 2 br villa in footscray west followed by a 2 br unit in footscray.

Wednesday sees me at an open for a 2br unit in Maribyrnong, Thursday morning at a 2br villa in "Essendon North" (read: Niddrie… tsk tsk agents) with Thursday evening squeezing in a viewing at 6:15 in Brunswick before heading to my birthday dinner at 7!

That should see me through to the weekend.

For anyone interested my criteria are:

- 2 br min to accommodate for LMI
- looking around the $250k mark
- walking distance to zone 1 public transport
- units/villas for the price range, the fewer in the block the better
- Something that will rent for 6%+ in 9months+ time
- will only offer on favourable terms to me. 90days settlement, subject to finance/pest/building

Looking long term as a buy and hold, willing to do some work to it as I will be living in it but not looking to sell so no need for a $30k reno. Any work will just be to make it look nice and clean and usable.

Areas of interest are older units in Footscray/Maribyrnong/"Essendon North" and Essendon and Brunswick if I can get them.

If I can purchase to move in around March it will be good timing and will give me some good saving time.

And so it begins!

Cheers,

Ben

 

[want2bewealthy]

Onya Ben!

Im looking for my 3rd as we speak, put in lots of offers but the market is doing so well here that REA's feel they dont have to put in any effort at all, its hard. . much harder than in the past, whats the world come to when you cant even buy a place if you try!. . lol

 

[buzzlightyear]

Onya Ben!

Im looking for my 3rd as we speak, put in lots of offers but the market is doing so well here that REA's feel they dont have to put in any effort at all, its hard. . much harder than in the past, whats the world come to when you cant even buy a place if you try!. . lol

W2BW, what's driving the strong market in Darwin?

 

[buzzlightyear]

Ok, so here we go. Time to take Mr Rudd's money and go looking for IP#2/PPOR for 6 months.

It starts tonight with a viewing at an Essendon 2br unit that was passed in on the weekend. Followed by a search around the Footscray area with a local agent who is taking me to at least 2 units, if not more. First one is in Footscray west a 2 br unit, next is a 2 br villa in footscray west followed by a 2 br unit in footscray.

Wednesday sees me at an open for a 2br unit in Maribyrnong, Thursday morning at a 2br villa in "Essendon North" (read: Niddrie… tsk tsk agents) with Thursday evening squeezing in a viewing at 6:15 in Brunswick before heading to my birthday dinner at 7!

That should see me through to the weekend.

For anyone interested my criteria are:

- 2 br min to accommodate for LMI
- looking around the $250k mark
- walking distance to zone 1 public transport
- units/villas for the price range, the fewer in the block the better
- Something that will rent for 6%+ in 9months+ time
- will only offer on favourable terms to me. 90days settlement, subject to finance/pest/building

Looking long term as a buy and hold, willing to do some work to it as I will be living in it but not looking to sell so no need for a $30k reno. Any work will just be to make it look nice and clean and usable.

Areas of interest are older units in Footscray/Maribyrnong/"Essendon North" and Essendon and Brunswick if I can get them.

If I can purchase to move in around March it will be good timing and will give me some good saving time.

And so it begins!

Cheers,

Ben

Ben, that sounds exhausting!

You should definitely get a few options with your criteria. The 6% return in 9 months will be interesting. IR should be around that or even less in August 09. Reno's on those units (depending on their condition) might be around $5-15k max.

Walking distance to train line would be the best option instead of tram. Have become a real convert to the train after buying in Windsor which has a 2 minute walk to Prahran station. 7 mins and into the city. That's if you can squeeze in at peak time.

Keep us posted on your experiences.

 

[want2bewealthy]

W2BW, what's driving the strong market in Darwin?

Anything you can think of that drives a property market is driving this one all at once pretty well,

Ive stated this within the forum and dont want to sound like a broken record but here it is, just one more time

One of the fastest growing populations in Australia
Strong and somewhat shielded employment
Inpex and Dow coming to town
high wage earners
big Government planning into the future
new roads bridging the Darwin-Palmerston commute
new Harbourtown complex due to be complete by 2010
new wavepool planned for Palmerston coming soon
strong shortage of housing
lack of building
Highest rental yields in the country
high cost of building

Those sorts of things.

 

[Belu]

Ok, so here is the summary of the viewings tonight:


essendon unit: 2 bedroom, 2nd level, nice place, ok sized rooms, 2nd bedroom small, fully renovated, not much to add value, quite noisy though as it faces buckley st, could do with double glazed windows


maribrynong unit: 2 bedroom, ground floor, good location but asking too much. similar property sold for $250k at auction on the weekend, this asking $260+ agent said high $280's would get it... keep dreaming


Footscray 2 2br units were crap, large blocks of 18 and 24 units and both run down, could see large body corporate levies looming on the horizon!


Footscray 2 br villa unit, quite nice. Asking $250-275k, only 4 on the block, small courtyard, needs a bathroom reno but not total re-do. possibility depending on price


Sunshine: spoke to an agent from sunshine, will be going out there tomorrow night on the way to hockey to have a look. a 2br unrenovated unit 5 min walk from albion station and sunshine shops for $170k. in a different street next to the train line but 2 min walk to station and shops are a 2br renovated townhouse for $240k and an unrenovated unit for $225k

Outtakes:

essendon has merit, depending on price. noise was a factor but could be ok. definitely not in the best pocket of essendon, wrong side of the tracks and on a main road facing it, but still an area of good CG.

sunshine tomorrow has promise - but depends on the look of the places, not much on re.com.au in terms of photos for them so could be interesting

the footscray unit also is pretty good. $250k if i can get it for that would be alright. Rent would be high 200's so a 6% yield would be possible, can do some value add onto the bathroom as well whereas cant do anything except windows to essendon

So there are some good possibilities out there. might be worth a bit of a lowball on one or two, i would be happy to own the essendon one so why not? Does have some negitives, the master bedroom being right on buckley st isnt ideal and could prove difficult to move if needed.

 

[Belu]

Hi all,

After some feedback from the community. Looking at two options at the moment and wondering what people think of them:

~$185k for a 2 bedroom unit in sunshine gross yielding ~ 6.2%; basically buy it and leave it, no need to do anything to it as has a recently renovated bathroom and kitchen (quite nice)- or
~$260k for a 4 bedroom house in St Albans gross yielding ~5.8%; have to do some cosmetic work to it when i move in (~$5k+), with future potential to subdivide and develop (600+sqm block)
Depreciation would be similar with more expenses for the house obviously. St Albans rent based on $290/week which is what a 3 bed next door is up for.
I am leaning towards the house for future potential. With an I/O loan the interest short fall would be about $220/month before tax which I think is fairly decent given the potential to subdivide etc.
Thoughts?
Ben

 

[Player]

Ben,

If you can live in the area and it ticks the right boxes for amenity, transport and you've checked with council that you have a chance to subdivide, I'd also lean toward the house with dirt.

 

[Aimjoy]

Ben,

I agree with Player..........but why not get them both?

 

[craigb]

it would be the gas sell thingy that is driving those prices??? maybe?