My first IP in Brisbane

[Dominican]

Hey guys, my first post on here, so far I have read a lot of interesting information so thank you.

I am looking to buy my first PI in Brisbane. I would eventually like to buy two houses (minimum 3 bedrooms 15km to 25km from CBD) and do some kind of renovations like bathroom, kitchen, floor, etc. My idea is do part of the job myself and look for a professional just to install the new kitchen/bathroom.

We have about $100,000 for a deposit and our monthly salary is 16000aud together. I am an IT contractor and my wife is a nurse.

What would you recommend as the best way to start?

I am thinking of purchasing a first house (around 300k - 350k) and a second one (around 250k -300k) and refresh both of them and after rent. My expectation is rent both houses for approximate $300-$350 p/w each house. Around $600-$700 weekly.

Does this sound feasible?

I am open to all ideas and suggestions!!!

Thanks you in advance.

 

[starter]

Definitely feasible in the Logan area.

 

[LeoT]

Hi Dominican,

Sounds like you have good borrowing power. What you mention is definitely possible. Only thing I would say is make sure you know what your goals are, timeframes , financial situation etc and then decide which is the best course of action to take that will most likely get you to your goal fastest.

Just because someone can buy something for X amount and rent it for X amount, doesn't necessarily mean its going to be the best potential for achieving their overall goals (any I'm not saying your idea isn't). Just make sure its the best/most likely course that will get you closer to your goals, and not just 1 of many courses you financially are capable of doing.

Well done on your start mate!

Good luck

Leo

p.s regarding your wife being a nurse.. I know a thing about this area as I was in health profession before. From a purely money making perspective, it would be best to work in Mental health as opposed to medical nursing. Much less physical work involved (so she has more energy to focus on business), endless overtime (will greatly boost her income to invest) I know 2, 3rd year RNs in mental health. They work overtime like there's no tomorrow and rake in after tax about 1700/week. that's after tax. they are building their portfolio very, very fast. I don't know if this is something that fits into your life plans, but just a suggestion that I would seriously consider if your primary goal is to build wealth and fast. OK now im off to see a painter.

 

[Redom]

Hey guys, my first post on here, so far I have read a lot of interesting information so thank you.

I am looking to buy my first PI in Brisbane. I would eventually like to buy two houses (minimum 3 bedrooms 15km to 25km from CBD) and do some kind of renovations like bathroom, kitchen, floor, etc. My idea is do part of the job myself and look for a professional just to install the new kitchen/bathroom.

We have about $100,000 for a deposit and our monthly salary is 16000aud together. I am an IT contractor and my wife is a nurse.

What would you recommend as the best way to start?

I am thinking of purchasing a first house (around 300k - 350k) and a second one (around 250k -300k) and refresh both of them and after rent. My expectation is rent both houses for approximate $300-$350 p/w each house. Around $600-$700 weekly.

Does this sound feasible?

I am open to all ideas and suggestions!!!

Thanks you in advance.

Definitely sounds achievable.

You'll need to sit down with a lender/broker to work out your borrowing.

With contractors, if you are viewed as 'self employed', you may need 2 years ABN + 1 years financials for your income to be considered.

Also, it may be a good idea to think beyond your next two properties and form a medium term plan. Setting these goals early allows you to shape, plan and execute better.

Good luck,

Redom

 

[Qlds007]

Hi Dominican

I assume you are going to stagger the purchases as with $100K deposit even at a 90% lvr it is going to fairly tight when you factor in acquisition costs and then your renovation costs for each property.

You might be better off to get the first property under contract and then start work and then revalue with a view to releasing equity for the second acquisition.

Presume you do not have an existing PPOR loan as if so you really want to ensure that you structure the loans correctly in order to maximise your deductible interest.

Certainly the way i started my Brisbane property portfolio in the mid 90's.

Cheers

 

[Dominican]

Thank you everybody for your comments.

After a catch up with my financial planner will be better to get the first property and then wait to have more equity for the second one (Thank you Qlds007).

I think I can have a loan of 360K giving 100K deposit and in 6 months I will have around 60K savings. This mean my loan in July /august will be 200K. In this moment I can try to buy the second one.

Please, let me know your comments? Can I do it better? I don't have a PPOR.

Thanks in advance!

 

[Dominican]

Thank you LeoT - I just forward your advice to my wife.