Not sure whether to jump in

Hi everyone
I had an inspection today on a property which on paper looks good. It's a dual income so would give me a good yield. It's also in a decent area and I'm confident i'll see good growth. It also happens to be right next door to my other IP not that this matters either way.
I've got a LOC to use for the deposit, stamp duty etc but was hoping to leave at least $10k in this to reno #1. If I buy this one it'll take me pretty much up to my limit.
I'm a bit confused - do I buy this one because the numbers stack up well, and forsake the reno on #1? This could also mean that I wouldn't be able to add value to use for leverage on a further property, or do I look for something cheaper with equally good numbers so I can still do the reno on #1.
Would love some advice or thoughts here.
Thanks
 
Craigb - what do you mean? I was hoping for some constructive advice here.

Perhaps I should have said by maxing out my LOC I wouldnt be adding value on #1 to use as further leverage for another purchase. I'd be waiting on natural capital growth.
 
I had an inspection today on a property which on paper looks good. It's a dual income so would give me a good yield. It's also in a decent area and I'm confident i'll see good growth. It also happens to be right next door to my other IP not that this matters either way.

kals,
This new one gives you:
1. good yield
2. good growh
3. ability to amalgamate in future with next door (which you already own)
and like all property lets you leverage growth.
....and you're having difficulty deciding on all this or blowing $10K on a reno?

Please snap out of it and go sign a contract today! ....now....run :rolleyes:
 
Propertyunity - thanks for your feedback. I guess my concern was not being able to add value NOW on #1 so that I can move forward and purchase again. If I buy this one I'll have no equity purchase again quickly. I have my mortgage broker in my head saying to leave enough to do the reno and a bit spare "in case" - now i'm looking at maxing out. I appreciate your advice and apologies if these seem like silly questions - Im new to all this!
 
Propertyunity - thanks for your feedback. I guess my concern was not being able to add value NOW on #1 so that I can move forward and purchase again. If I buy this one I'll have no equity purchase again quickly. I have my mortgage broker in my head saying to leave enough to do the reno and a bit spare "in case" - now i'm looking at maxing out. I appreciate your advice and apologies if these seem like silly questions - Im new to all this!

So your options are:
1. You can purchase now
2. You can do a $10K reno on #1 and draw down equity to purchase later

Mmmm option 1. please.
 
Hi Kals

Is IP1 currently tenanted? If yes forget the reno, move onto IP no 2.

Don't want to reno with a tenant, and works out, especially tax wise, if a reno is done after you have had the place for a while.

I am with Propertunity.... go get em.

Sunshine
 
Hi Kals

Is IP1 currently tenanted? If yes forget the reno, move onto IP no 2.

Don't want to reno with a tenant, and works out, especially tax wise, if a reno is done after you have had the place for a while.

I am with Propertunity.... go get em.

Sunshine

Hi Sunshine! It is, by the previous owners - until about Feb/March so was waiting for them to vacate before doing it.
 
It also happens to be right next door to my other IP not that this matters either way.

Kals, this matters *HEAPS*.

Have you ever heard of "consolidation"? It's the opposite to "subdivision". It can add value big time if done at the right time.

Cheers,

The Y-man
 
Go GO GO Quick Kals.....too good to pass up....right next door to IP#1

Think of the opportunities down the track...(Future RE ads: Super house with tennis court and pool on 2 titles.....or Block of ??? units on 2 separate titles)
 
Hi Kals

After our chat today, I just want to share a post of mine a from couple of years ago.

http://www.somersoft.com/forums/showthread.php?t=33000

In particular post no 5 from Dazzling who is now TPFKAD

However, right now, the property deal is right out there compared to what you've done before, so go back to the processes that give you comfort before making decisions ;

Re-visit your numbers
Double check your assumptions
Keep a nice lump of cash handy for the unforeseens
Keep in close contact with your team of helpers

This would have to be up there with some of the best advice that can be given.

Sunshine
 
Thanks Sunshine - i'll definitely go over the few points "Dazzling" suggested and will be speaking to my MB tomorrow. From your old thread it seems everyone suggested you dive in and hang on. I'll let you know how I go and what I decide!!
 
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