How did you feel about your first IP?
- Thread starter Demoivre
- Start date
I always get buyers remorse. I think it is part of the process.
In the lead up to a purchase I am thinking about how much money i will make in the long term. Then i buy and there is not a lot of initial excitement despite parting with a lot of cash. The buyers remorse dissipates slowly, usually in line with the capital gains and growth of the weekly rental returns.
The key is to remind yourself how the purchase fits in with the long term plan and treat is as another small step on the ladder to this goal.
In the lead up to a purchase I am thinking about how much money i will make in the long term. Then i buy and there is not a lot of initial excitement despite parting with a lot of cash. The buyers remorse dissipates slowly, usually in line with the capital gains and growth of the weekly rental returns.
The key is to remind yourself how the purchase fits in with the long term plan and treat is as another small step on the ladder to this goal.
I've never been too attached to IPs. Like a ship, an IP takes you on a journey. Make sure she is solid and affordable and takes you where you want to go....well, that;'s how I look at it.
I remember my bank manager having a chuckle two decades ago when houses in Clarkson could be had for barely $85,000. "Plenty of people buy, then cannot afford the mortgage and sell at a loss."
I remember my bank manager having a chuckle two decades ago when houses in Clarkson could be had for barely $85,000. "Plenty of people buy, then cannot afford the mortgage and sell at a loss."
Buyers remorse from everyone around me, but not for myself.
"OMG You paid nearly $200K for a house in Clarkson, houses will never be worth $200K there!"
Edit - Never had it on any of my purchases. Profit when ya buy, not when ya sell
When was Clarkson worth 200k?
I always get sucked in by the real estate agents counter offers
Problem is that I'm only interested in corner/ subdividable blocks where you can retain the house. Leaves me in a vulnerable bargaining position....
So that's why I get remorse, however I know the value of land will always pay off
I was pleased--got it cheap in a moving market.
Redrew equity 6 months later to finance IP2.
Redrawing equity again now to finance IP3 (15 months after purchasing).
Still pleased.
Redrew equity 6 months later to finance IP2.
Redrawing equity again now to finance IP3 (15 months after purchasing).
Still pleased.
My first IP was actually intended to be the home my then-partner and I would live in... then he broke up with me three weeks after settlement (we had already been living together beforehand.)
I had big time buyer's remorse, my plans were 'ruined' and I had to move back in with the folks (I was only 21, so not too bad) and had to rent it to be able to mostly cover the mortgage. I ended up finishing my economics degree part time while working full time. That wasn't fun.
However it ended up giving me a lot of equity over a short period of time so it all worked out well in the end, thank goodness!!
(we had already been living together beforehand.)I had big time buyer's remorse, my plans were 'ruined' and I had to move back in with the folks (I was only 21, so not too bad) and had to rent it to be able to mostly cover the mortgage. I ended up finishing my economics degree part time while working full time. That wasn't fun.
However it ended up giving me a lot of equity over a short period of time so it all worked out well in the end, thank goodness!!
Made plenty of mistakes. Paid to much - fortunately a rising market helped out a bit.
Ready to go again all the wiser.
Ready to go again all the wiser.
Well timed mate - great move buying no1 in Sydney just before a significant price acceleration.
Feel great about my first purchase, mainly because I took 'action' - i'm really not too fussed how it performs overall. It's got more significance in that I made a move and got in. That in itself is worth a whole lot more than any financial gain I make from the individual property. The lessons and decisiveness here will hopefully serve me well to make $$ in my next 5 moves.
Cheers,
Redom
My first IP was an impulse purchase as a PPoR which later became a rental when my job moved to the CBD. I was driving past and saw a home open sign, inspected, liked what I saw and had my offer accepted that same day. I was pretty happy to have found my first property that easily.
I moved in the day after settlement and lived there a couple of years before I had to move closer to the CBD. Between tenants, I did a major cosmetic renovation which boosted the value quite a bit and meant more rent.
I tried to sell at one stage but there were around 20 similar units on the market at the time. After a long term tenant moved out, I checked the market and was surprised there was not one single similar unit on the market. I made a snap decision to sell, listed asap and sold a couple of weeks later.
Even though I quite liked it, I never felt any sense of ownership of it. I find that strange considering how many hours I spent on the reno. I don't really get emotionally attached to buildings but I kind of thought I would care more about selling my first home.
I moved in the day after settlement and lived there a couple of years before I had to move closer to the CBD. Between tenants, I did a major cosmetic renovation which boosted the value quite a bit and meant more rent.
I tried to sell at one stage but there were around 20 similar units on the market at the time. After a long term tenant moved out, I checked the market and was surprised there was not one single similar unit on the market. I made a snap decision to sell, listed asap and sold a couple of weeks later.
Even though I quite liked it, I never felt any sense of ownership of it. I find that strange considering how many hours I spent on the reno. I don't really get emotionally attached to buildings but I kind of thought I would care more about selling my first home.
