Just completed tax return, so now have a full year to determine whether I did well, ok, or poorly in our first foray into property investment.
Briefly
bought 2 of 4 unit block, recently refurbished, but developer ran out of cash before finishing.
Paid roughly 200k each.
Suburb – Bayswater Vic.
Both units 2 bedroom, new appliances, fences, heated etc.
New tenants in straight away, been with us since Jun 06, have just raised rent by small amount, but added security doors and flyscreens to both units.
I do the lawns/gardens myself, takes me 1/2 hr every 2 -3 weeks (10 mins from home)
So, after 1 yr, they have cost me a total of $540 out of pocket, after I claimed the -ve gearing in my return.
With Rent increase, now approx $500/yr +ve.Capital Gain – haven't investigated yet, but expected 2-3%.
Located near train station. shops, schools, buses, and nearby houses are being torn down and 2 storey townhouses for 350k being sold there. They are renting for close to $300 week, ours substantially les than that, so tenanting should be fine for the future. One tenant has asked for a 5 yr lease, other has made it clear she intends to be there for 2-3 yrs. Both work nearby (Walking distance)
Aldi has just started building new supermarket nearby, safeway renovating, shopping centre being redeveloped under new owner. Govt has spent lots upgrading facilities in area.Forecast for the future – bright.
We can obviously (using those figures) hang on for 5-7 yrs, and then use any cap gains to fund further props.Thought this may be of use to others.
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