Just taken the plunge - first IP!

[ned261]

Hi all, after a month or so of looking around the inner east suburbs of Melbourne I've finally signed a contract for a 2br unit in Camberwell in need of some renovation.

The property was initially listed at 380k private sale, but with the owner very keen to sell, not much competition, and the offer of a short settlement I managed to negotiate down to 350k all in the space of one day. The agent was very professional, and only required my offer and negotiations to be verbal. It's currently vacant, so I plan to get the floors polished, paint and replace curtains/blinds before renting it out early next year for around 330pw.

Any hints and tips from those of you who've been at this much longer than I would be very much appreciated.

Cheers,
Ned.

 

[Peter Parker]

The property was initially listed at 380k private sale, but with the owner very keen to sell, not much competition, and the offer of a short settlement I managed to negotiate down to 350k all in the space of one day. The agent was very professional, and only required my offer and negotiations to be verbal. It's currently vacant, so I plan to get the floors polished, paint and replace curtains/blinds before renting it out early next year for around 330pw.

Any hints and tips from those of you who've been at this much longer than I would be very much appreciated.

Each month the property is vacant will cost about $3000. As it's vacant, see if you can get access before settlement to get tradesmen, work out how much paint is needed etc to reduce the time between settlement and when the tenant moves in.

Peter

 

[want2bewealthy]

Sound advice, spiderman,
can I ask if you went variable for the loan?

 

[ned261]

Thanks guys, and yes, chose variable (for the moment).

 

[turk]

"Each month the property is vacant will cost about $3000. As it's vacant, see if you can get access before settlement to get tradesmen, work out how much paint is needed etc to reduce the time between settlement and when the tenant moves in. "

Peter

Actually each month vacant or occupied it will cost you $3000, but you will not receive
rent @ $1430 p.m. less costs(agents fees etc.) when vacant.

Another Peter

 

[Perp]

Actually each month vacant or occupied it will cost you $3000, but you will not receive rent @ $1430 p.m. less costs(agents fees etc.) when vacant.

Took the words right out of my mouth...

Ned, some recommendations for the coming weeks/months:

* ITWV to reduce tax deductions from salary once negatively geared
* obtain a depreciation schedule
* get quotes for insurance - building and landlord - and make sure you get building insurance ASAP if you don't have it already - in QLD the building is at YOUR risk from 5pm the day after contract signature (unless you amend the standard contract, which I always do)
* revise will, income protection, life insurance etc if necessary