Purchased Fst IP Property

N

NBS

Well after reading, asking lots of questions on how to get into IP and noone family friends I know for support (so to speak) I dare say I was a bit scared to commit, but hell I figured its not going to just happen. So the bullets been bit and I just won hmmmm or lost :rolleyes: (time will tell) buying my first property at auction (go figure).

I'm happy with my purchase price I guess thats a good start and I am excited to move forward. RP Data put the place at $298000 agents feel the market is around 265 - 270000 I picked it up for $190000. Specking with the agents and what I intend on doing to the place they say I will get $285000 - $290000 when complete if I elect to sell (not my plan). The rent Appraisal is $300 PW. The place is 2 klm to train 200m bus 1klm to main shops parks, schools are also close.

Whats the catch, well I have plenty of work to do to bring it up to scratch kitchen, bathroom, laundry, toilet basically a total make over. The advantage its a very solid and sound structured house except for a slighty burnt back bedroom (no major structure damage apart from some ceiling batten). No biggie there.

So on the 17th next month its mine and the 18th its on :D If anyone is interested I will be taking plenty of photo's of each room couple of reasons I guess to learn and get peoples advise on.

Let the journey begin

Brian
 
Congratulations. Taking the first step can sometimes be the hardest.
Is the property in Brisbane?

What do you estimate the reno will cost?

How much will you do yourself?
 
Sorry wife was up my ribs to go shopping and did not get to finish my post.

The place is in Woodridge Brisbane 1klm logan central.

The reno I allowed $52000 (including GST) but this covered a lot of things I DO not have to do like redo front fence, build rear deck, remove trees chinese elm, remove and build some internal walls (I thought of a better and cheaper option prior to auction) and bag and paint the exterior of house so am redoing my figures after I go and remeasure the place again next Saturday that way I can get a firm budget to stick by and thus allow me to start sourcing my gear IE stoves, hotplates etc etc.

I had also allowed to rewire the whole place and my sparkie said this may not be required and he would test all wiring and I only need to replace as required. Even so I had allowed $1500 more than he indicated to rewire the whole place anyway, so feel well covered there.

How much work will I do myself, 30 years ago, just about all of it :D now not so much so son is going to do the rip out and general rebuild and landscaping works, I will do all the carpentry, painting, some tiling.

I will get my sparkie, plasterer, floor sander and roof tiler in re the roof I'm happier on terra firma these days, I feel the more firmer the less terra :)

It will all come down to time, it maybe more cost effective to get some trades in ie exteriour painting to reduce overall time doing the whole project cause holding costs will play a part if it takes to long to complete.

In a way its come at a bad time as I'm hamstrung with a bung leg and will be out for at least 6 weeks :( but you get that.

http://www.realestate.com.au/property-house-qld-woodridge-106424040

Check the link out, let me know what you think .......... be ummm kind :)

Being a chippie and licensed builder helps :).

Brian
 
well done , the first step to freedom, although you won't feel like it for a few months, :D

$52,000 seems too much to spend on this, i would check the wiring and add RCD fuses to the home.
I would go with cheap carpet, not sand the floors, better for depreciation, and quicker ,
I would do flat pack kitchen and some , elcheapo PC items , go with laminate tops too.
paint the inside , change the door furniture, and remove a wall or two.

re- tile the bathroom and also add some elcheapo PC's as well.
unless the outside is an ugly (nasty ugly) brick, just give it a paint.
throw some new plants and bark in .
DO NOT FALL IN LOVE WITH THIS HOUSE! it will only cost you .
the point is to get somone to babby sit it while you get the capital gains over the next 10 years, good luck and cheers craigb, builder too!

my estimate 25k spend the other 25k on the new main bedroom and ensuite:D
 
craigb said:
well done , the first step to freedom, although you won't feel like it for a few months, :D

$52,000 seems too much to spend on this, i would check the wiring and add RCD fuses to the home.
I would go with cheap carpet, not sand the floors, better for depreciation, and quicker ,
I would do flat pack kitchen and some , elcheapo PC items , go with laminate tops too.
paint the inside , change the door furniture, and remove a wall or two.

re- tile the bathroom and also add some elcheapo PC's as well.
unless the outside is an ugly (nasty ugly) brick, just give it a paint.
throw some new plants and bark in .
DO NOT FALL IN LOVE WITH THIS HOUSE! it will only cost you .
the point is to get somone to babby sit it while you get the capital gains over the next 10 years, good luck and cheers craigb, builder too!

my estimate 25k spend the other 25k on the new main bedroom and ensuite:D
Click to expand...

I agree I have NO PLANS on falling in love with it, what you have said is what I am thinking with tiling bathroom, PC etc etc, Will have to consider the carpet thingie your estimate of $25000 was the bracket I was aiming to achieve, will nut this out better this Saturday.

Brian
 
Congrats NBS on your 1st IP! It definitely has alot of potenial and you sound like the man with all the tools to do it.

Good Luck and keep us posted with the results

:)
 
twobobsworth said:
I guess the owners in default were a little angry about having to leave?
Click to expand...

LOL ummm yeah I had that feeling but the place has been vacant for a couple of years which of course raised another matter :eek: excited um persons with not a lot to do found something to do, one hopes they have controlled there mode of excitement.

Brian
 
NBS said:
I agree I have NO PLANS on falling in love with it, what you have said is what I am thinking with tiling bathroom, PC etc etc, Will have to consider the carpet thingie your estimate of $25000 was the bracket I was aiming to achieve, will nut this out better this Saturday.

Brian
Click to expand...
i second you both!
the biggest mistake my brother made was falling in love with his 1st ip.
bought the best kitchen appliances fittings ect...
didnt work out profitable for him in the end. they have had to keep it as they didnt make they werent going to make there money back...
thinjk of it as a business!
 
Welcome to the Club

I hereby officially welcome you as a paid up member of the "One Investment Property Club" (I'm a member too!).

Let's hope your membership will be suitably brief before moving onwards and upwards.

Congratulations on taking the plunge.
 
:D I hope it to be short lived I am looking at a place this Saturday just down the road from where I just purchased. Will admit my mind set is not to buy in the same suburb, prefer to spread my options in case one area fails to move forward.

My aim was to purchase two IPs in 2010 however may have hit a snag and will take some smooth but positive action to make this happen.

Looking forward to positive action.

Brian
 
Piston Broke said:
Well done.
It will will also be an invaluable learning experience.
Click to expand...

You have no idea the learning process I am going throught at the moment and I figured I had covered everything :rolleyes::eek:. But alas each turn a wall builds and I have to knock it down and move on. But as they say nothing is easy.

But every step I take at the moment I learn that bit more and I will gain from this, to be more wiser investor next time.

I cannot wait to attack this place and get it completed and into the next place.

Brian
 
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