Finally Bough First IP
- Thread starter wrexter
- Start date
Of course!! What a silly question!
Well since you all asked so nicely!
As mentioned, Kent Cliffe from Momentum Wealth assisted my Wife and I in acquiring our first IP?s which settle in August. The property was purchased at auction (deceased estate).
Description: Duplex pair on ~895sqm block with potential to build on rear of property.
Location: Grantham Pl. Carlisle
Front Unit ? 2 x 1 Unit
Rear Unit ? 3 x 1 Unit
Purchase Price: $800,000 (went into Auction with max purchase price of $900,000)
Stamp Duty: 32,315
Rate: 4.99% Fixed 5 years with CBA
Property Condition: Both units were generally in good structural condition internally and externally however they had been neglected for years and were in serious need of rejuvenation. The carpets were disgusting (in colour and condition) and both units smelled of cat pee and cigarettes.
Tried to negotiate access to properties prior to settlement to begin renovations but access denied. Lesson learned is that place a clause in the contract to allow for access if possible!
Upon settlement, both properties were renovated with a budget of $35,000 total. Renovations were completed in about 2.5 weeks which was a very stressful time as we left for holidays days after renovation completion.
I self managed the renovations which I enjoyed and learned a few things.
Renovations completed:
- Full interior paint for both units (inc. gloss on doors and trimmings, flaking on ceilings repaired and repainted)
- All ceiling lights replaced
- All blinds replaced with new roller blinds (double rollers to living rooms)
- New 7.1 kw Split System Wall mounted AC to both units
- New masters Kitchen with Electrical oven and cooktop to rear property
- New flooring (Vinyl plan in living and carpet to bedrooms) throughout both units (except for kitchen in front property as it was not required)
- Both bathrooms sealed (Megasealed)
- Electrical work carried out in roof to meet current regulations
- New window locks and deadbolts to both properties to comply with regulations
- Clean up gardens
Total ? Just over $30,000
Front property was vacant for 3 weeks, rear property was vacant for 5 weeks
Current rental rate:
Rear Property (3x1) (New Kitchen) - $440 p/w (12 months lease)
Front Property (2x1) - $390 p/w (12 months lease)
Overall a good experience with Momentum and an acquisition of a property we would of missed had we looked on our own without their assistance.
Plan going forward is to re-strata and subdivide in the next 12 months with the aim of building a 3x2 villa or unit in the rear which will theoretically convert all three into positively geared.
I think every renovation we carried out was good value as the properties were in dire need of a facelift. The biggest changes were attributed to new paint, flooring and new kitchen in the rear property.
I will update with photos soon.
As mentioned, Kent Cliffe from Momentum Wealth assisted my Wife and I in acquiring our first IP?s which settle in August. The property was purchased at auction (deceased estate).
Description: Duplex pair on ~895sqm block with potential to build on rear of property.
Location: Grantham Pl. Carlisle
Front Unit ? 2 x 1 Unit
Rear Unit ? 3 x 1 Unit
Purchase Price: $800,000 (went into Auction with max purchase price of $900,000)
Stamp Duty: 32,315
Rate: 4.99% Fixed 5 years with CBA
Property Condition: Both units were generally in good structural condition internally and externally however they had been neglected for years and were in serious need of rejuvenation. The carpets were disgusting (in colour and condition) and both units smelled of cat pee and cigarettes.
Tried to negotiate access to properties prior to settlement to begin renovations but access denied. Lesson learned is that place a clause in the contract to allow for access if possible!
Upon settlement, both properties were renovated with a budget of $35,000 total. Renovations were completed in about 2.5 weeks which was a very stressful time as we left for holidays days after renovation completion.
I self managed the renovations which I enjoyed and learned a few things.
Renovations completed:
- Full interior paint for both units (inc. gloss on doors and trimmings, flaking on ceilings repaired and repainted)
- All ceiling lights replaced
- All blinds replaced with new roller blinds (double rollers to living rooms)
- New 7.1 kw Split System Wall mounted AC to both units
- New masters Kitchen with Electrical oven and cooktop to rear property
- New flooring (Vinyl plan in living and carpet to bedrooms) throughout both units (except for kitchen in front property as it was not required)
- Both bathrooms sealed (Megasealed)
- Electrical work carried out in roof to meet current regulations
- New window locks and deadbolts to both properties to comply with regulations
- Clean up gardens
Total ? Just over $30,000
Front property was vacant for 3 weeks, rear property was vacant for 5 weeks
Current rental rate:
Rear Property (3x1) (New Kitchen) - $440 p/w (12 months lease)
Front Property (2x1) - $390 p/w (12 months lease)
Overall a good experience with Momentum and an acquisition of a property we would of missed had we looked on our own without their assistance.
Plan going forward is to re-strata and subdivide in the next 12 months with the aim of building a 3x2 villa or unit in the rear which will theoretically convert all three into positively geared.
I think every renovation we carried out was good value as the properties were in dire need of a facelift. The biggest changes were attributed to new paint, flooring and new kitchen in the rear property.
I will update with photos soon.
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Such an interesting purchase. Congrats! 
Haven't thought of a duplex pair before. Still at the early stages of learning the game
What did you pay to Momentum to help you find this deal? Were they involved in the purchase process? We've enquired at Margaret Lomas' shop a couple of months ago. Entry into their program was approx $10k. That covers the training bit and 1 year mentoring.
Haven't thought of a duplex pair before. Still at the early stages of learning the game
What did you pay to Momentum to help you find this deal? Were they involved in the purchase process? We've enquired at Margaret Lomas' shop a couple of months ago. Entry into their program was approx $10k. That covers the training bit and 1 year mentoring.
Diseased? Hopefully not an Ebola victim?!
Nope, just old age.
deceased* (3rd line of your above post
haha now i see the funny! fixed
Thanks z611143,
We used equity from our PPOR so we didn't need a deposit. and we borrowed only an additional $35k for renovations as that was the maximum we could borrow whilst avoiding mortgage insurance.
Yes those amounts are post renovations, renovating the properties essentially added about $40-$50 per week in rental based on their previous appraisal and rental agreements.
Sounds like cross coll?
