Your last investment purchase - Why did you buy it?

What was the upside to buying your last investment purchase?

Did you buy for capital gain in a rising market?

Did you buy for cashflow?

Some examples with figures would be good.
 
It was there.
It was cheap - very very under median.
It was subdivisible.
The area is bloody fantastic.
There was ridiculous capital gain to be had (approx quadrupled in price)
There was ridiculous rental yield to be had (20-25% rental yield).
No matter how you look at it it is a win-win situation.

We bought it because it was there and we're still umming and aahing about exactly what to do with it. If my old house sells it stays an IP, if my old house doesn't we'll probably sell it. One way or another is only better depending on bank lending criteria for the new house.
 
I bought because it was off plan and the price was $531k. Older stock adjacent selling for about same price, still about 1yr till completion. also its just 1min walk to train and only 2 stops to the city. I could onsell today for about $630k
 
Bought in Toowoomba for 315k. Had DA approval so subdivide, reconfigure lot and build on back. Had a house at the front, which I could rent whilst developing the back. Was the cheapest house and land in Rangeville (for the size of land).
I mainly bought for positive cashflow as well as massive capital once the development is complete. Don't know if I will be holding or selling.

Should be cashflow positive - Current house $270 pw, 2x units should rent for $350 pw. Providing $970 pw which will make it roughly $300 per month cashflow positive.

Capital - Bought for 315k, development should cost 300k (hopefully), once finished duplex development should be worth $650 - 695k, current house 230k. Providing 265 - 310k capital before tax.
 
Bought in Toowoomba for 315k. Had DA approval so subdivide, reconfigure lot and build on back. Had a house at the front, which I could rent whilst developing the back. Was the cheapest house and land in Rangeville (for the size of land).
I mainly bought for positive cashflow as well as massive capital once the development is complete. Don't know if I will be holding or selling.

Should be cashflow positive - Current house $270 pw, 2x units should rent for $350 pw. Providing $970 pw which will make it roughly $300 per month cashflow positive.

Capital - Bought for 315k, development should cost 300k (hopefully), once finished duplex development should be worth $650 - 695k, current house 230k. Providing 265 - 310k capital before tax.

Hi Roachy,

Are you saying the total value is $880,000 ($230k + $650k)?

Have you done this type of development a few times before?
 
Was looking for a unit to buy... ended up buying a duplex, 100m to shops, cinemas and ice skating ring.

205k per title, so 410k total.

title one is renting for 270 per week (with reno complete )
title two is renting for 180 per week

Once I reno title two then fix up and paint the out side will be looking at 300 per week for both titles
 
Big Col,

Yeah that's what I'm saying.

This is my first development. So it should be interesting. I have researched my little head off in regards to building, council, pricing etc. I hope it goes well because I will do 1 or 2 a year if it goes off without a hitch.
 
Last purchase, as indicated in another thread is a 3 bedroom house in central NSW for about $69k. Will rent for $165-$180/week, depending on the reno. Whole reason was to increase my servicing and decrease my negative cashflow from the other properties in my portfolio. Positive to the tune of about $30/week. :)
 
Latest one settles next week - 2br unit; Rockhampton $133k, rents $240pw.

I have another in complex last valued at $180k getting $280pw. Depreciation approx $6k pa.

Should achieve similar rent/depreciation after a max $5k spend.

Purchased for almost instant equity and CF+.
 
Latest one settles next week - 2br unit; Rockhampton $133k, rents $240pw.

I have another in complex last valued at $180k getting $280pw. Depreciation approx $6k pa.

Should achieve similar rent/depreciation after a max $5k spend.

Purchased for almost instant equity and CF+.

Icarus,

Superb numbers! I had a look at realestate.com.au and a number of properties display similar numbers. Is this a new thing - I am not at all familiar with Rockhampton. Any information would be appreciated.

Cheers.
 
The doom and gloom started to get to me but i still believed that my area had good fundamentals for long term growth.And i always said if the right property appeared i would jump. Well it did. 1000 sqm plus corner block. 3/4 bedder with attached granny flat. very hard to find and i was suprised to find very little interest before the auction. Everyone was a bit spooked. made an offer. back and forth a bit then accepted. There were many angry people over it not going to auction so that made me feel good about the purchase.
 
North Rocky, just off Elphinstone St. Only really came across it as I have another one in the complex and managers put me onto it - was a mortgagee sale/auction.

Rocky market is very slow atm, a few good buys coming up that I've noticed over the past couple of months. A lot of places are on the market listed below boom prices of 06/07. I have a feeling that this will continue as market continues to be stagnant.

El Cabello - I'll be back up there in a week, so happy to drop past any properties that take your eye.
 
How about yourself Cole, what was your last investment purchase?

My last 2 purchases were in 2007 (albeit at the time this was the peak of the market for Cairns, yet didn't know it at the time), but bought well & undermarket to the tune of around $40k each on $190,000 & $160,000 unit purchases, so even now still OK. I sold the $160,000 unit for $216,000 with no work done 14 months later. Now ready to buy again but Cairns market here is still in the doldrums & expect it to still fall in $$$ for another 12-15 months, but may wait until then to buy again - ATM rental returns aren't there & with no capital growth in sight, why buy? I'm looking for something with at least an 8% return under $500k.
 
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