My Journey Has Begun

On Thursday the 29th i settle.

With hard work during university not only studying but earning enough and being disciplined enough to save whilst also being smart with my money i was able to save up enough for a deposit.

Then i came across this forum and started my search for property. I wasn't a high income earner with what i was doing at the time and was actually only a casual (albeit) doing 30 hours +

I knew i couldn't buy in City Beach, Cottesloe or Dalkeith and knew my first property like many would have some sort of reason it wasn't even close to one of these or anything alike but it was time to start.

I sensed a period in the market where people were turned off property (No competition) coincided with low rates. It seemed both characteristics had crossed.

I bought a 2 bedroom House in Midland. After some research i came across a bit of rejuvenation/redevelopment of the suburb and liked a few features. The area where i bought is just outside the MRA redevelopment http://www.mra.wa.gov.au/documents-...nd-master-plan-report_for-advertising_web.pdf

Along with the above the Midland train station was being moved straight down one road from my place and the LLOYD st railway link was a stone throw away.

The WA football oval was moving to Burswood and was just 14km straight down Great Eastern.

The new St John of God hospital 80% completed being built in Midland and the potential for a curtin university being put through in 2016 to work with the hospital.

I certainly know the downsides to the area, however am hoping like all these places the evolution happens.

The place i bought went on the market initially at 380k then went upto 400k and i got it for 80% of that. The property is 471 sqm, set back 3 streets from Midland central. Has a new patio and large shed at the back, split system aircon. Place is about 80sqm not including carport living area. The median price acc to REA is 388-395k for 2 bedroom houses. The kitchen, laundry, vanity have been renewed but nothing amazing, just looks like nice and clean.

It sort of suited my strategy of getting a loan <300k, with at least a 10% deposit to reduce LMI, now ill either be looking to Buy and Hold, reno/rejuvenate and potentially sell or redevelop/subdivide and build one at the back or knockdown and build 3.

On a variable rate i will be paying $270 per week IO. I have a tenant moving in on the day after settlement, the papers have already been signed and utilities being transferred. With this it will be +CF $60 per week including all cost (Not annually rates).

I have done a building and Pest inspection with Resirect which were very good. Also the help of newer Broker and somersoft guru Jess Peletier this has been the start of what i hope is a portfolio i can grow like many others who have inspired me on here. Have been in talks with BMT and looking for them to do a property report.

Im yet to work full time. Have my first place at 23.

Im unsure on my plans with this property. I am going to talk to council about potentially getting a 3.2m-3.3m driveway approved to build a place at the back, this would be ideal but i cant see it happening i believe they like 3.5m minimums. This is Plan A

Otherwise i will knock down when i have the serviceability for 3 small units/villas ~70-80 sqm each. 157sqm blocks once R60 zoning occurs and i have the funds. This is Plan B

I may even potentially look to do slight cosmetic work/reno work if subdivision isnt capable or doesn't look right money wise. (Fresh Paint), Fresh Doors, wooden outdoor deck, rendering the small bit that needs rendering with another colour, down lights and a roof tile clean and some brick paving - most of which i reckon i could do myself. This is Plan C

I know i probably couldve potentially done better and maybe got too excited to get into this too early, however its a start and hopefully i learn more along the way then what it cost me. Time will tell.

Thanks
Z6
 
Congrats on your first IP. Like you I started young and the best thing about is we have time on our side :) plenty of time for mistakes and plenty of time for success
 
Congrats for tomorrow Z6, very exciting times! I'm really looking forward to seeing the progress of this property and the experiences that will undoubtedly come of it! Who knows where this will take you :)
 
Congratulations on the first IP! It is the hardest of all.
Yipes! My first my easiest and they got progressively harder after that. Harder to find and harder to buy due to my knowledge increasing, increasing prices and my criteria becoming stricter. That said, #1 made the least and #3 has increased the most so far. The extra effort on my more recent purchases has certainly paid off.
 
I certainly know the downsides to the area, however am hoping like all these places the evolution happens.
Well done! The development of the area may take a while but I agree with you there is a lot of future potential. I bought in redevelopment area in Melbourne and the development is slow but gradually reaching my place. In the meantime, at least yours is CF+. That certainly makes it easier to hold while the value increases.
 
nicely done - keep it up.

Don't forget to live too though. I'm all about investing for the future but it's also important to live in the present too.

Cheers

Jamie

Yeh i understand the balance is key.

Whilst at uni ive gone to europe for 5 weeks, melb several times, bali and lombok several times, thailand and also the gold coast all for a week or more.

I also play golf regularly a game i now love.

But agree balance and 'living' whilst young is key
 
Nice to break the Cherry!

Well done,:)

As others have mentioned your first IP is the hardest by far,took me some 12 months to purchase my first..
 
Congratulations & well done Z6.

Its the starting that stops most people, that in itself sets you ahead of the rest.

Dream Believe Create & Succeed.
 
Good on you Z6 :)

Onwards and upwards from here!

(Hurry up and get a job so you can buy more :p)

Get me a job @D.T. :p but seriously anyone

Hard worker, head screwed on ;)

Anyone in Occ Health and Safety, Trades Assistant or im starting Building Design if anyone is keen to help a new good SSer out?

Z6
 
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