Ben Everingham’s 1st investment property was a 2-bedroom, 1-bathroom unit that we renovated in Miranda, NSW. This unit is now sold.
- 85 sqm
- 2 bedroom, 1 bath
- City views
- Distant water views
- Less than 200m to local shopping centre
- Less than 1km to Westfield shopping centre
- Less than 1km to child care centers
- Less than 1km to train station
- Less than 12km to ocean
- Next to sports complex
- 100+ units in the complex
- We achieved a capital gain of 16% over the 3 years we owned the property
- Bathroom $5000
- Painting $3600
- Timber Flooring $1500
- Carpet $1000
- Labor $2900
- Materials $1000
- Total cost $15,000
- 2013 – $428,000
Why did we purchase this property?
- We wanted to get a foot into the property market
What did we learn from purchasing this property?
- Be very careful when investing in property with friends
- Don’t rush into your first investment property
- Goals and expectations change over time, with experience and education
- Purchase properties you plan to hold on your own, if you can afford to do so
- Make sure your clear about your future personal and professional goals before investing in property
- Make sure your current purchase is setting you up for future purchases
- Find a mortgage broker who will look after your best interests, rather than one looking to write an easy loan
- Understand how the banks look at properties owned by multiple parties. In my eyes I bought this property with two friends and we each owned a 33% share. In the banks eyes all three of us were liable for 100% of the debt, which became a big issue when I went to get my next loan.
- Buy in areas with strong infrastructure
- Simple renovations can add rental appeal and capital gains to your property
- Don’t over capitalise when renovating
- Manage your renovation budget
Why did we sell this property?
- Redistribute capital into higher performing investments
- Poor strata management and rising strata fees
- Strained relationships
- Low rental yield