First IP :-)

Discussion in 'Property Investment - Other' started by wombat777, 5th May, 2015.

  1. wombat777

    wombat777 Member

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    The contract on my first IP is now going unconditional.

    The property is a recently-renovated highset in the Moreton Bay Area. There was a significant amount of investor activity in this market.

    I should achieve a yield in the 5.2% to 5.8% range. This should put me in a CF+ position.

    I am using a buyer's agent and their service has been outstanding.

    A 60 day settlement was requested by the vendor. It will be a relaxing time ahead of preparing the property for rental via a few minor repairs and a spruce up of some of the downstairs areas.
     
  2. Coota9

    Coota9 Member

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    Congrats Wombat on your first IP..you have broken your cherry..

    What suburb did you buy in?

    cheers Coota
     
  3. wombat777

    wombat777 Member

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    Deception Bay.

    I was also considering Kippa-Ring and toying with Redcliffe and Kallangur.
     
  4. ZachAnSel

    ZachAnSel Member

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    Welldone, most people say the first is the hard one. Up up and away!

    Can you provide more detail in the number? Like purchase price, etc..
     
  5. Brian84

    Brian84 Member

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    Congrats on your first ip. I get depressed when everyone is buying properties and I can't get my first ip yet lol

    All the best for your ip journey ahead of you.
     
  6. wombat777

    wombat777 Member

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    Prefer not to provide specifics, however I was primarily searching in the $280k to $350k range. I was looking for CF+ and a good location for capital growth. Managed to knock $20k off the starting price. Vendor has also kindly done some repairs and more painting since I had the B&P done.

    There were plenty of properties available, however finding properties with a combination of location and property condition was tough.

    Having a buyer's agent on the ground was a big advantage. B&P was last week, however I arranged for the buyer's agent to go back and check there was no damage after the storms that hammered Deception Bay a few days ago. They also arranged extra electrical and plumbing checks I wanted after the B&P.
     
  7. j_p

    j_p Member

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    Well done and good luck moving forward. Is it too soon to ask what's next?
     
  8. wombat777

    wombat777 Member

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    Rinse. Repeat, i.e. more research, perhaps with a second purchase before the end of the year.

    That said, need the ink to dry and then need to secure a tenant for the first one as a first priority.
     
  9. cadence

    cadence Member

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    Congrats! Onwards and upwards!
     
  10. Rixter

    Rixter $uper Investor (Retired)

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    Wombat777, congratulations and well done on taking the plunge into your first IP.

    Its the starting that stops most people and you've now got that one out of the way.

    Once again, congrats.
     
  11. wombat777

    wombat777 Member

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    Thanks! The decision to do something was only 11 weeks ago. In that time approx 12 properties carefully considered in 4 suburbs, offers submitted on 3 properties.
     
  12. Nem

    Nem Member

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    Well done!! Congratulations
     
  13. Michael_X

    Michael_X Member

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    Congrats Wombat777!

    Make the decision to do something, 11 weeks later - done! Excellent :)
     
  14. scha9799

    scha9799 Member

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    Congrats on the purchase wombat777.

    This is exciting !

    A multimillion property portfolio starts from first one and the next one then the next one.......
     
  15. wombat777

    wombat777 Member

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    Thanks. Your stories and others at Wentworthville leagues helped get me into the right mindset, although somersoft has been generally helping anyway.

    I'm heading in a week or so to Brisbane to see the property first hand ( at this stage I just have about 100 photos ). Will get quotes on repairs and do locality research for this and future purchases.
     
  16. Jacque

    Jacque Buyers Agent and Bookworm

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    Well done Wombat and glad the experience was a positive one for you! The first one is always the most exciting :D
     
  17. wombat777

    wombat777 Member

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    Visited the property for the first time today. Quite happy with the location and the general condition of the property.

    The primary purpose of the visit was to get some quotes for work to be done ahead of putting a tenant in, although settlement is about 5 weeks away. I have a shopping list of repairs that I may or may not go ahead with depending on priority ( mainly for safety ) or for improving tenant appeal.

    I also met with / interviewed a number of property managers. The selection will be tough as they all have their merits.

    One tidbit I did pick up is that the Brisbane rental market for units is tough at the moment. Apparently vacancy rates are high due to the number of properties being built. Can anyone confirm whether this is broadly true across the Brisbane and greater Brisbane area?

    Also - optimum times to place a tenant are June/July and January. Theory being that this is when families are most likely to move due to school holidays.
     
  18. lup15

    lup15 Member

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    Congrats on your first property, I hope to be in the same boat in a few months.

    The question about vacancy rates really depends on the area and your target market. For example, currently South Brisbane and West End area is having a huge amount of high density residential complexes going up. I can't speculate whether the rental demand in this area will drop or not (hadn?t researched this area), but the amount of supply becoming available, particularly new apartments, will probably mean vacancy rates higher than other areas. This was (is?) the case particularly for Brisbane CBD.

    Also there are areas where the demand is generally higher and thus vacancy rates lower due to lifestyle, proximity to amenities etc. This all comes down to the due diligence and knowing who your rental target market is.

    With regards to the January and June/July rental cycle is generally to do with university students.

    Hope this helps
     
  19. MIW

    MIW Member

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    Well done, as they say the first step is the hardest, right?
    Not only did you learn about the acquisition process, you will now progress with agent's management contracts, also minor renovations to add value if possible.
    Just remember keep at it and let the time do it's thing!
    I own only houses in QLD, and had no current vacancies but heard from some agent yes about oversupply for units, also some tenants can afford now their properties so they may be buying (on smaller scale though).
    I think your timing into that market is good too, so congratulations!
     
  20. MyPropertyPro

    MyPropertyPro QPIA (PIPA)

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    Brisbane units is a market I have been involved with and looking at quite closely. The answer lies in the research of all the data which then reflects in vacancy, particularly the trend. Would suggest chatting to your property manager involved in that market if you don't have anyone else to speak with involved in the research side of things.