Ben Everingham– Wurtulla QLD – 2012

Front-5

Ben Everingham’s 3rd investment property was a 3-bedroom, 1-bathroom house that I renovated in Wurtulla, Queensland. This home was our principle place of residence in late 2012 and 2013 and is now sold.

Property Features

  • 555 sqm
  • 3-bedrooms
  • 1 bathroom
  • Less than 2km to new hospital
  • Less than 2km to local schools
  • Less than 1km to lake
  • Less than 2km to ocean

Financial features

Capital gain

  • We achieved a capital gain of 18% over the 15 months we owned the property

Purchase price

  • $320,000

Renovation costs

  • Kitchen $5750
  • Bathroom $2000
  • Painting $5500
  • Tile Flooring $2500
  • Carpet $1000
  • Labor $2900
  • Landscaping $2000
  • Lighting $1250
  • Plumbing $500
  • Rendering $600
  • Materials $1000
  • 2013 – Total Cost $25,000

Sale price

  • 2013 – $390,000

Why did we purchase this property?

  • To provide a first home for my family
  • Immediate capital gains ($30,000+ on the completion of renovation)
  • Strong demand for renovated housing in this area
  • Strong demand for rental properties in this area
  • Strong investment into local infrastructure (shopping centers, hospitals and transport)

What did we learn from purchasing this property?

  • Look at your own home as an investment
  • Buy under market value
  • Capital gains can be made in a flat market
  • Buy in areas with strong demand
  • Buy in areas with strong infrastructure investment
  • Understand your market
  • The money you make on your principle place of residence is tax free
  • You can not claim any tax benefits on your principle place of residence
  • You can buy and sell one principle place of residence each year
  • Don’t over capitalise when renovating
  • Find trades you can trust
  • There is often less profit in a deal than initially expected. Make sure when you take into account closing, renovation and sales costs when looking at the feasibility of a project

Why did we sell this property?

  • Tax free capital gains ($30,000+ on the sale of the home)
  • Leverage
  • Wanted access to additional finance to build another principle place of residence. See Ben’s 5th investment property – 4 bedroom house in QLD – 2014
  • Manufactured all possible growth at the time and were now reliant on the market for future capitals gains
  • Poor rental yield

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