Ben Everingham – Miranda NSW – 2011

Wandella-Road-2

Ben Everingham’s 1st investment property was a 2-bedroom, 1-bathroom unit that we renovated in Miranda, NSW. This unit is now sold.

Property Features

  • 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

Financial features

Capital gain

  • We achieved a capital gain of 16% over the 3 years we owned the property

Purchase price

  • $360,000

Renovation Costs

  • Bathroom $5000
  • Painting $3600
  • Timber Flooring $1500
  • Carpet $1000
  • Labor $2900
  • Materials $1000
  • Total cost $15,000

Sale price

  • 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
  • Serviceability
  • Strained relationships
  • Low rental yield

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