Just aquired 2nd IP!

W

want2bewealthy

Yes! its a relief to finally be able to breathe again,
some of you will know that Ive been pretty dead set on purcasing this 2nd property and many have urged me to slow down, which I dont want to do just yet, but now I at least feel satisfied for a little while until the hunger returns, which I have no doubt it will,

I purchased my first about 6 months ago and have been saving heavily since then, Ive been stuttering and have had cold feet about actually going ahead and financing another property for months now,

Ive chosen "the" place about 20 different times now.. this time I just decided to say, enough is enough, the house I bought adds up nicely and is almost positively geared too which helps greatly, it costs me pocket change to hold which makes my final descision even better than I thought it would be, capital growth history is 7%P/A capitalising over the past 5 years with an average CG rate of 11% which is o.k.

Just had to share my joy, thanks for listening!
 
Thats fanatstic.

So tell us a little bit more about it, location, rooms etc. Why you choose this one instead of the others.
 
letiha said:
Thats fanatstic.

So tell us a little bit more about it, location, rooms etc. Why you choose this one instead of the others.
Click to expand...

I ended up with a 2br duplex with good sized yard, fully fenced in Victoria's Norlane, Most people would say "why on earth would you buy there!"
To these people, I told you why in my earlier findings

www.somersoft.com/forums/showthread.php?t=36684&page=2


It costs me $3000 Per annum to hold the property including all fees and thats not including tax back.

The property is around 35 years old which is great, no premium to pay, easily renno'd and landscaped to increase value but looks quite good as is, also there is a tight rental market in Geelong right now which is great, it has some depreciation left in terms of what the previous owner has done inside so thats good.

At first, I didnt feel overly confident in buying interstate because I couldnt do any work I wanted or repairs myself, plus, knowing your area is important, I lived in Geelong for about half my life so that was easy to get my head around, if it were anywhere else, Im a bit uneasy about buying because I just dont know enough about the location.

Its not the "nicest" area around but I never have to live there so dont see a problem with this factor, also, the location in general is stable and tightening as far as real estate goes, its no major capital city but its close and works almost the same, with massive numbers of expected new citizens to Melbourne in the coming years, I believe many will be forced to commute from towns like to Geelong so that will also push prices up, I also like the idea of the lower end housing market as most blue collar workers find it hard to buy at or above the mediun price, its much easier to buy and sell houses in the lower end. vacancy rates are low, capital growth is standard, rents are good, I also wanted to diversify a bit too.

I head to Geelong every few years, now Ill be able to claim the trip as a deduction and do some work on my place while Im there.

I feel very comfortable with this property, I can sleep easily at night.
 
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Congrats!

I totally know what you mean about going fast. Right now I am in that boat - hungry for my 2nd IP and I've been looking 'high & low' - almost driving me batty and everyone else around me.

Hopefully I won't be too far behind you!

:)
 
Well done on finding a place with such a good yield. If those holding costs are before tax then it is very close to positive. (Almost makes me interested!)
 
Congratulations.

Going too fast?? I don't understand it when they say buy one property per year, if you can afford to buy more than one per year, do it.
Otherwise in 12 months time, with a rising market you will have to borrow another 10-15% more.

I bought 3 in 8 months, and if I had have waited for 12 months, some have gone up by $15K - $30K.

You have done well, all mine are negatively geared and I am trying to get used to this good debt, it is a bit of a shock to see the bank balance dwindle down, but if you can affort it, go and buy more.
Happy Investing.....
 
Boost said:
Congrats!

I totally know what you mean about going fast. Right now I am in that boat - hungry for my 2nd IP and I've been looking 'high & low' - almost driving me batty and everyone else around me.

Hopefully I won't be too far behind you!

:)
Click to expand...

Good to hear Boost! I wish you all the best.
 
yieldmatters said:
Well done on finding a place with such a good yield. If those holding costs are before tax then it is very close to positive. (Almost makes me interested!)
Click to expand...

Thanks Yield, Yea, Im feeling pretty positive about the property today, I bought it at 4.00pm Friday while at work, finished at 5pm, then worked again from 6pm until 12, then got up at 6am to go on a houseboat and party all night and Ive only just had time to reflect on all aspects of the investment, after being quite confused all weekend, I can see that Ive made a good choice today so I can rest easy now.

By the way, the houseboat was bloody awesome! we went barra fishing whenever we felt like it and there were crocs everywhere! lots of really cool looking birds and eagles, [the geese stayed in flocks and never once dared to enter the water, I dont blame them..] great boat, great company, great location, anyhow, I got to talking to a girl my age who holds a house and vacant block of land worth.. wait for it.. 340k for the block!:eek:
She works at the tip full time and probarbly doesnt make a whole lot of money [neither do I] and I was really amazed at how shes been able to hold the lot, with no tennants, its a really strange thing to do if you ask me, she will be building on it very soon though which is good o hear ;]
 
Good on you WTBW.

Keep going the way you are and before long you'll have your own houseboat.

Good luck with it all.

Regards
Marty
 
Well done W2BW!

Glad to see you've got number 2 under your belt, especially at your age! :)

Was a bit worried you were succumbing to 'analysis paralysis.'
 
I'm also impressed as it's not easy to be very flush with cash when working in the music industry. In fact it can be nigh on impossible. You know why of course - low pay (retail and gigs); always that "better' bit of equipment to add to the arsenal, shift work, etc.

I went to an Indie music seminar last week and one of the panel members owns and runs the Indie label in Brisbane called "Modern Music", but he also happens to be into property investment! He sent me a follow up email and stated that it's a lot harder work even in producing, managing and running a label (with all the cantankerous persons that are part of this scene :rolleyes:).

But hey - rock on!! :D
 
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