I did it - got my first IP!!!!!!!!!!!

S

Shuttergirl

Well we finally got our first IP, something we have long talked and dreamed about but since finding Somersoft I actually had the confidence, support and a little more knowledge to do it.

We bought a house in Melton, 5 years old, 3 br, 2 bath, double garage. It's in great condition and I feel really relaxed about the whole thing, something I didn't think would be possible.

Can't thank everyone here enough for the amazing and wonderful advice that helped me get started. It really was a priceless gift.

We're really happy with the Melton choice, we ended up spending a little less than we thought we would for our first IP so we are thinking that Dec/Jan we might be in a position to buy IP2. (which is pretty exciting to think about).

We've had a building and pest inspection done, finance is approved, contracts are signed and being exchanged soon.

Two questions now though:-

1. should we have insurance on the property now?

2. when should we get the depreciation schedule done?

I think that is all the questions for now, no doubt I will think of a million more over the coming weeks.

I'm so excited!!!!!!!!!!!!
 
Congratulations!! You're on your way :)

Once the contracts are exchanged you should insure the property. A depreciation schedule is best done on settlement, ie, between owners moving out and tennants moving in.

Oh, and don't forget to do a pre-settlement inspection a week before settlement which should include checking the major appliances, heating & hws works.
 
I always insure immediately, it is waaaaaay to big a risk for my SANF.

Just imagine the problems if it burnt down tonight :(

Could be legal fights for years, let the insurance co's sort it out while you find another IP.

I would have the depreciation schedule done once I own it as these things can still fail, I know of two sales where one party died while waiting for settlement.
 
congrats shuttergirl - you go!! the first ip is such a huge step, we're all proud of you.

i think you will find that you need to insure prior to settlement as the bank will require a copy of the insurance note. it also doesn't hurt to get this done one to two weeks before settlement for the reasons macca noted.

get the depreciation report after settlement, but wouldn't hurt to ring a week before settlement and book them so that they are ready to go the day after - in the current market you won't have much time before a tenant moves in.

have you picked your pm? you probably also need to get them on the ball so that they can advertise for tenant the day after settlement (unless they have one lined up already).
 
Congratulations on the first IP! :D

As the others have said, insure staright away. I get a cover note put on the place the day I sign the contract.

I try and do the dep. schedules as soon as possible - the day of settlement if you can. But they can backdate them from the day you took control if you can't manage to get them in there then. Either way, you'll want it done before the end of the financial year so it's all ready to go with your other tax documents.
 
Wow...how exciting. Good on you. Hope you are celebrating appropriately...with a wee dram of something special to mark the occasion.

I always get a covernote the day I sign the contract...provides lots of peace of mind, incase something should happen.

Yep, organise a PM straight away...minimises the time needed to get a tenant.

And get a Dep Sched organised for the day of settlement.

All good stuff...you are on your way now. Congrats!
 
Thanks so much everyone.

Now this is going to be a dumb question, who does a depreciation report?

Oh and I will ring up and organise insurance today just for peace of mind.
 
Shuttergirl

A depreciation report is prepared by a quantity surveyor. Do a search of the forum - there are several posters here who are QSs and I'm sure that there are recommendations from others.

Congrats on your purchase - and welcome to the exciting world of IP owners! :)

Cheers
LynnH
 
Last edited:
Shuttergirl said:
Thanks so much everyone.

Now this is going to be a dumb question, who does a depreciation report?.
Click to expand...

A Quantity Surveyor - don't let your Accountant do it. Should find 'em in the Yellowpages in your IP area.

I want to add my congratulations to you also. First of many more to come I trust.

Aimy
 
Hi Shuttergirl,

Well done on your first purchase.

I notice you are from Canberrra, just curious if you've physically seen the property?

Also, looking at the map, is that all vacant land on the left side of the map shown near your property, or are there streets with houses there?

If so, do you know if it is zoned rural or residential?

GSJ
 
Good on you

Hi there Shuttergirl,

Nice looking home. And to echo the thoughts of everyone else; Congratulations !! :D

Phil
 
I haven't physically seen the property, however my in-laws inspected it for me, they live in Ballarat and father-in-law spends a bit of time in Melton for work. I believe there are several streets behind the property and that the vacant land is zoned residential.
 
Congratulation Shuttergirl. When I bought my first IP, I took advantage of a 6mth honeymoon interest rate which was like a cheaper introductory rate. During that 6mths, I stuck every spare cent into it to get the borrowed amount down to a more comfortable level. That also gave me early equity for the next ip. Not for some, but it suited me. :)
 
Excellent news

Hi Shuttergirl,

Great News,Just wanted to add my Congratulations.

Hope you are celebrating with a glass of bubbly.

Lovely property, many more to come I'm sure.

Lisa
 
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