I recently caught up with some friends of mine. They are a young, professional couple who’ve just picked up a great investment property in Boondall, a suburb on the north side of Brisbane.
I thought their approach to buying their first property was extremely mature and worth sharing with you.
Why did you choose to invest in Brisbane / QLD?
We both grew up in Brisbane and know the suburbs around us well.
We have a good understanding of the schools, shops and transport system around Brisbane, as well as average purchase and rental prices.
We were both brought up on the north side of Brisbane, which made investing in the area an easier decision.
What did you end up buying and why did you buy it?
We bought a 4 bed, 1 bath, 2 car house in Boondall for $345,000.
We chose this area because our research showed a number of suburbs on the north side of Brisbane are returning fairly strong rental yields.
We chose this house because it was cheaper than other 4 bedroom houses in the suburb; this was due to an unattractive facade on the front of the house. It was easy for us to look past the unattractive facade and see a comfortable home that is well suited for the average family. We new with a little render the house would scrub up well.
What are your plans for this property?
The house has now been rendered with a smooth, flat texture, which has made a huge difference to the street appeal of the home.
We have also added new curtains, a couple of extra wardrobes, fixed the roof leaking and added a new front fence.
In a few years, we may look at adding a small shed (because there is no garage) and updating the fence around the entire perimeter of the house.
What are your plans for future investments?
We are looking to leverage off the equity created by our basic cosmetic renovation in the Boondall property to buy a second property for us to live in.
Our plan is to continue using this strategy to buy more investment properties – we aim to pick up at least one new property per year.
What have you learnt from purchasing this property?
We learnt so many things from buying this property including:
- Don’t trust what a real estate agent has to say.
- Take your time. Don’t rush into buying the first house you see. We looked for the right property for over four months.
- Use a mortgage broker because they can match the right loan with your needs and wants.
- Don’t judge a book (or a house) by its cover.
What would you do differently if you were starting out again?
Overall, we are happy with how everything turned out.
However, we found it to be an incredibly stressful process even though we are both in the property industry.
If we were starting out again we would recommend you:
- Be as prepared as you possibly can.
- Have a conveyancer lined up before signing your contract. This way you can ask them as many questions as you like.
- Get your signed documentation to the bank as soon as finance is approved. We learnt it can take some time on their end to go through all of the formalities and you don’t want this to result in a delayed settlement.
- Try not to get emotional about your investment – after all you’re not buying your dream home your buying an investment property.
Looking to buy your first home but don’t know where to start?