Your First IP.!!
How much did it cost etc ?
And when did you buy it ?
Do you still have it ?
And what is it worth now ??
I bought my first IP in Bassendean,Perth- in about 1989-90, a 2×1 unit in a complex of about 14 for about $67 000 at around 13.5% interest.It Was always rented..
and was rented for about $80 p/wk ( i Think )( *scratching* his head, remembering ..) The property had a HUGE backyard due to the Blocks shape and was only about 1k walk down to the river, i held the property for about 8 years and sold it ( $ ? have to look at my paperwork, as i’m at work )
The value now… i’d be guessing as i couldn’t find anything ‘close’ on the property sites, my guess is around $160k+..
I’ve driven past and thought many times, i should’ve kept it..[grad]Live and Learn
“Money is a currency, like electricity and it requires momentum to make it Effective”Brenda IrwinParticipant@brenda-irwinJoin Date: 2003Post Count: 119
My husband Les and I bought our first house in 1998 at Burrum Heads, a holiday area north of Hervey Bay in Qld.
It was not bought at the time for an ip, as such. Our thinking, was to spend the rest of our working lives paying it off and then we’d have somewhere nice to retire to. Purchase price was $125,000 and the permanent rental at the time was $125pw.
This was purchased in the quiet market period, no growth, and it was even negatively geared then! Knowing what we know now, we would never have touched it.
We eventually last year got tired of it still being negative,(rent was still only $140pw) and sold it for $185,000.
The really important bit is what we did with the proceeds of sale; we paid out the loan on our own home and one other ip as well!
If you want to get out of a hole, first stop digging.JetDollarsParticipant@jetdollarsJoin Date: 2003Post Count: 2,435
My first IP bought in Sept 2000. It is a 3 br all with built-ins, Single LUG, reasonable size of land in a quiet suburb.
I bought it for $230k and rented at $235pw.
Now it’s worth $410k-$430k, but renting at $220pw at the moment. I want to sale it, but at the same time I want to knock it down and build my dream home. I still haven’t decide what to do at the moment!
[Retire Young, Retire Rich] [strum]Brenda IrwinParticipant@brenda-irwinJoin Date: 2003Post Count: 119
Crickey, Chan! Your rent actually went backwards?[crying]
If you want to get out of a hole, first stop digging.
Good Morning Chan$ and Brenda [sunny][sunny]
I’m not Alone out here [thumbsupanim]
“Money is a currency, like electricity and it requires momentum to make it Effective”RubbachookMember@rubbachookJoin Date: 2003Post Count: 288
First IP was in Launceston, Tas in December 2002 (yep – I’m a newbie!). Bought for $142K rented for $210K. It’s worth somewhere around $190K – $200K now (I got in on the up).
I’m actually trying to work out whether I should sell as I’m unlikely to see this kind of gain in the near future (Launceston had about 10 years of flat “growth” from around 1990-2000). TAS has other risks (like employment, population growth etc) and I’m thinking I should take the money and run. But there’s not urgency as it pretty much breaks even after depreciation and special building write-off…yackMember@yackJoin Date: 2003Post Count: 1,206
My first investment property was a 2 bed unit in Mentone, bought for $90,000 in 1997. It rented for $135 now rents for $205.
Never lost any rent except for between tenants which was only a week or two.
I have replaced Kitchen, carpets and landscaped backyard and painted.
An unrenovated unit sold for $250k a few months ago so I reckon mine is worth a little extra.
Its tripled almost in that time. Its also allowed me to purchase 3 additional properties. And two of those have doubled in the 4 years I’ve had those.
I will only sell if I want to upgrade my PPOR and need the extra equity.
Now you can see why I am pro quality growth properties.TringMember@tringJoin Date: 2004Post Count: 24
I bought my first house in 1999 in Adelaide for 72K, it was a 2 brm, brick clad home with very high celing and very nice decorative celing ornates in every room of the house, decorative fire place, the whole back yard was cemented with nice gardens. After I got married, due to my mother inlaw’s ill health my wife and I have to move in to live with her to care for her so we rented my house out for $165/week.
In June 2000 my mother inlaw’s health got worst and needed to live in Melbourne for treatment since Melbourne has better facility, we moved to Melbourne but still keep the rental house, in 2002 the tenant owed 1 month of rent and left without paying, the property manager hired debt collectors to chase the tenents but could not find them and at the time we were young and did not know any investment strategies and because we see its a hussel having live in one state and have an ip in another state, so we sold it for 130K, Late last year a similar house in the same street was sold for 210K.
If I have some of the knowledge that I have now back then I would have kept it and use the equity to further purchase more IPs. Well it an invaluable less for me.
Now I’m still learning, but see the market have peek and the news saying that if buy now there won’t be any capital growth for the next 4-10 years so I’m confuse and don’t know what to do.
Hope every one have a nice day [biggrin]JetDollarsParticipant@jetdollarsJoin Date: 2003Post Count: 2,435Originally posted by Brenda Irwin:
Crickey, Chan! Your rent actually went backwards?[crying]
If you want to get out of a hole, first stop digging.
I know it’s gone backward, that’s why I am considering my option at the moment.
At least I am not alone!
[Retire Young, Retire Rich] [strum]bigbenParticipant@bigbenJoin Date: 2003Post Count: 62
First IP purchased 1998 for $78k rented for $145pw Had to spend approx 2 weekends and $2k to get that rent.2004 value $230k rent $180.
Second IP Purchased 2001 for $130k rented for $160pw. Spent no money at all.2004 Value $300k.
Third IP Purchased 2002 for $87k rented for $160pw.Spent 4 weekends and $2k to get that rent.
2004 value $190k curent rent $170pw
Forth property was PPOR for $160k in 2003. Spend every weekend doing stuff like new garage and stuff that keeps me busy….I have big plans for the place but alas …no money[glum].
2004 value $290k[party][party]
Sooner or later the man who wins is the man who thinks he canemf2fJMember@emf2fjJoin Date: 2003Post Count: 3
we bought our fist IP back on 2001 for 116k.Rent for 120pw now is worth 210-220k rent130p/w.
That time we don’t know what we are doing is negative geared property.
Now we are trying to get re-finance and bank will value that property and used the excess money to buy more IP…
This way we can cash in the Cgains without paying tax.Shirley_2Member@shirley_2Join Date: 2003Post Count: 87
Our first (and probably best) purchase was a 4 yr old duplex in NQ of two separate 3-bedroom ensuite houses for $275,000 just over a year ago. Rent is $420 per week and we’ve just had them valued at $330,00 to $340,000.elvesMember@elvesJoin Date: 2003Post Count: 507
we bought a house, lived in it then rented it while we moved. QLD I think we paid 35K..brain dead right now. Year er…1981, rented for I think $65 per week. Sold it for I think 67k or somewhere near that.
That same house is now 185-200k, doesnt look any different. rental about 200CastleDreamerParticipant@castledreamerJoin Date: 2003Post Count: 288
1993 – Brick and tile 90K Logan. Rent 150/wk, interest around 11.5%. Sold in 1996 to take a year off work – sold for on paper loss of 10K: (see…. if I had bought positive cash flow I would not have needed to sell it!!!!!!!
It all makes sense
CastleDreamerMiniMogulParticipant@minimogulJoin Date: 2002Post Count: 1,414
My first house cost 27,300. bought it last April.
Yes, still have it! probably worth 44-50K now.
it’s been rented out constantly for 110 per week.
it was a well maintained formerly owner-occupied villa, in good condition, in a town of 1500 which is about 1/2 an hour from a town of 45000 and on the ‘surf coast’.
20 percent return and it was the only one of my three properties which needed no renovation, all though it’s a bit grandmotherish in style, but in good condition.
I think it would be worth 45-50K now, compared to the only one property for sale in the area right now that I can find on the net, which is “45k ‘motivated vendor” and mine is of comparable age and style, though it has a better section being on a corner, with extensive garden and big palm tree, i think it even has a flagpole (never been there you see!)
i think it’s probably gone up around 50-60 percent in less than a year.bensonParticipant@bensonJoin Date: 2003Post Count: 101
Bought a block of land in Hillarys WA on the coast for 60K in 1994, I built a house on it so the total cost was about $140k it was initially rented for $180 per week (now $250) I estimate it would be worth around the $450k figure now. Loan is currently $115k so its positively geared. Most importantly it has given me a great learning curve and being only 23 when I bought It it has really helped set me up as the increased equity has allowed me to purchase 3 other coastal properties since and 1 in the inner city (all Perth).
BensonMiniMogulParticipant@minimogulJoin Date: 2002Post Count: 1,414
fabulous benson!PurpleKissParticipant@purplekissJoin Date: 2003Post Count: 580
First IP was a 4×2, 4 year old B/T home in Mandurah WA, within walking distance to estury and river. Purchased for $160,000 in May 2002. Just been revalued at $210,000. Rents at $170pw. Is -ve geared (purchased prior to learning about positive cashflow), however the equity of this one has given us the means to purchase other IP’s.
Still have it, it’s extremely low maintenance (no lawns etc, paved areas for parking of boat instead, which suits tenants, that’s why a lot retire down there) and as value continues increasing, we will keep this one so we can keep using the equity to purchase further IP’s.
Hey found some of my old books cleaning out the shed today..
Jan Somers Building Wealth through Investment Property ( bought it in 1992 when it first came out )
In the inside cover i had listed
First IP ( the one above in this post )
value in 1991 $69 500
1994 $80 000
Next IP South Perth
1994 $100 000
sold for approx $110 000
*value now* $200 000
First block of land Waikiki-Rockingham( sold it for $40k same year )
1993 $35 000
*now worth approx* $100 000
2nd block of land Broome ( sold it for $57k same year )
1994 $40 000
1996 $100 000
Now $190 000+
Was funny to read this, looking back and thinking of the deals..
Hindsight is great isn’t it..makes you think
Current IP’s doing very well..[biggrin]
“Money is a currency, like electricity and it requires momentum to make it Effective”tazMember@tazJoin Date: 2003Post Count: 14
1st ip was in 1999 in brisbane – a run down workers cottage which i lived in while i was married with a view to buying next door and selling both to a developer… after marriage breakdown of course the property next door came up for sale in 2000 which i wasn’t in a position to buy and i ended up selling to someone with the same idea as me D’OH… but they obviously haven’t got the funds to do anything because the properties are still sitting there…value now $250’s
On brighter news I bought my 2nd ip in 2003 in a country town with 10000+ people for 83k which was currently rented at 100+80 p/w the reason being that it is effectively a duplex but registered as 2 2br flats….
i just put the rent up to 100+90 p/w because i thought it wasn’t fair that there be such a difference between the two even though one is in not so good cond. (due to the current tenants)….
dont think the property has moved much in price but i hear that ANZ will borrow against an 8% capital/equity increase? which shouldn’t be too far away….