Just got my first real IP "buzz"

[MarkandTina]

I just heard back from the bank wrt the valuation on the IP that we have recently purchased.

They told me that their valuation (based on the council valuation) is 25% higher than our purchase price.

We thought the place was underpriced and we offered what we thought was a lowish price in a market where no one else was buying, but I'm over the moon wrt an 80k increase in equity. I understand its not cash in the bank, but we plan to B&H and the extra equity will come in handy.

Thank you to everyone who has posted their advice here recently, I'm very grateful for the assurance I've received to start investing by reading the advice of successful people who have done it.

Champas will be cracked tonight.

 

[steveadl]

Congrats M&T, sounds like you got a great deal!

Enjoy the feeling of getting your first IP, you've done plenty of research and you deserve it.

 

[BayView]

Great result; money out of thin air.

Don't you love property?

Make sure you get LANDLORD'S INSURANCE before the tenats move in.

 

[Perp]

Awesome outcome, well done!

 

[ianvestor]

Congrats on the valuation. Does this mean you're going to lock it in and get more finance?

Having a high value now won't mean much if you don't borrow against it, especially if the valuation drops over the next year or so.

 

[Player]

Well done MarkandTina,

80 K for another deposit and all for what? .......the price you paid was searching and putting in the time to find an undervalued gem.

What's the hourly return on that sweet deal?

Again congrats, now quench that adrenaline buzz with a glass or three of bubbly.

 

[MarkandTina]

Congrats on the valuation. Does this mean you're going to lock it in and get more finance?

Having a high value now won't mean much if you don't borrow against it, especially if the valuation drops over the next year or so.

Our next IP will have to be a lot closer to CF+ than this one at the time we buy it, and it will have to be a joint title/joint loan deal to make the DSR work.

My preference is to wait until I can lock in fixed rates of 6 - 7% for both IP's before I buy the 2nd one, so it may be 2 or 3 years away. Though if we find something we like that fits our plan and the numbers are right then we will definately look to buy again.

My feeling is that the Adelaide market should still have reasonable growth this year so I'm not too worried about devaluations.

I have a sneaking suspicion that Rudd's way of offsetting the cost of carbon credits will be to loosen the rba's requirement to keep inflation in a certain range, so that he can drop drop interest rates by up to 2% as we get close to the next election, but that is purely my guess.

 

[ZXR250]

Congrats! It's always good to hear of people making a nice little profit after putting in the hard yards in researching your market and having the guts to jump in and have a go.

We've just sold our second IP in the last 12 months after making $65K in about 8 months on one place and now $80K after 2 years of owning the latest one. That $$$'s has gone towards another 2 IPs and has also paid off all of our bad debt (3 credit cards and 2 personal loans). We're saving over $1400 a month now as we aren't having to pay the bad debt off and are in a position to look for yet another investment opportunity. Now that we're on top of our bad debt we'll be trying to hold onto the properties we buy instead of flipping them.

Life's good!!

-ZXR