Читать книгу 30 Properties Before 30 - Eddie Dilleen - Страница 13

I was 18 and ready to buy my first property — I just needed to find the right one. I had already spent years studying the market on the internet, so I had a pretty firm grasp of the various suburbs of Sydney and their price ranges. It was already clear to me that even the western suburbs were going to be beyond my initial budget, so I turned to another familiar area — the Central Coast.

During the school holidays my family would occasionally go camping together, and the Central Coast of NSW was one of the only holiday destinations we could afford. It was an hour-and-a-half drive from Sydney and had a decent-sized population, as well as a seasonal influx of tourists. It seemed a lot nicer than Mount Druitt, and I thought that just maybe I could afford to buy something at the price and rental return I was looking for. I searched day and night, but although prices were lower than in Sydney, most places were still just out of my reach. Finally I came across a property listed at $145 000.

My eyes lit up as I read the description. It had two bedrooms, one bathroom, a balcony and a car space. It was only 20 minutes' drive from where we used to holiday, at The Entrance. Better still, it was rented out at $200 a week. It seemed too good to be true. Comparable properties in the same area were selling for more than $165 000. There had to be a catch. I emailed the real estate agent, Damien, and received a phone call the next day. I told him this was my first purchase and that it was all still new to me. He was very understanding and agreed to show me through the property that weekend.

Arriving at the real estate office, I was greeted by Damien and my sister, Samantha, who had agreed to come with me. We jumped into our cars and drove to the property. As we approached, it became clearer why the place was cheap. The road was full of potholes, and the 12-unit block was daubed with graffiti. Rubbish spilled out from the six commercial units on the ground floor. Samantha and I exchanged glances — it wasn't looking good.

We walked around the back and approached the door of the unit where we found a pile of junk and abandoned furniture graciously left by the former tenant. Damien was a little embarrassed. The tenants had assured him they would remove it, but they'd clearly done a runner. Despite the less-than-ideal first impression, I tried to keep an open mind.

As we entered the unit, my excitement began to creep back. Inside was not half bad! It was clean and airy, with crisp white walls and older grey carpet that still presented well. The bedrooms had built-in wardrobes and shared a breezy balcony with views of the lake. The kitchen was older-style wood grain but perfectly presentable, and there was even a second balcony off the dining area. The council rates and strata levies were reasonable. The area was quiet and in high rental demand, and I knew the unit had only been vacant for a couple of days. It was close to schools, shops and the train line. It ticked all the boxes.

I knew I had a decision to make.

I pulled Samantha aside so we could talk in private. Although the unit was nice, we were both a little concerned about the seedy state of the exterior. However, having done my due diligence, I had some facts and figures up my sleeve. I knew that the median price for units in the area was around $185 000 — a good $40 000 above the asking price. All comparable listings were over $165 000, meaning the unit was technically below market value. Finally, I could use the state of the exterior as leverage in negotiating the price down still further. Using this logic, I talked with Damien and managed to get the price down to $138 500. This was the one!

Driving back to the agent's office, I knew I had made the right choice. This place was affordable and would give me a foot on the bottom rung of the property ladder, which was exactly what I had hoped for. Half an hour later I had signed on the dotted line and engaged the agent to manage the property and begin the search for a new tenant.

I took a deep breath. I'd done it and was on my way!

My first investment property!

It's not about what it looks like — it's about the numbers, and starting the journey!

This experience set the standard for how I have purchased property ever since. By thinking rationally, keeping a cool head and conducting thorough research, I make informed decisions, which ensures I get the best possible outcomes.

Here’s what the upfront costs looked like for property #1:

Purchase price	$138 500
10% deposit	$13 850
Lenders mortgage insurance (LMI)	$1 200
Conveyancing	$1 100
Stamp duty	$3 500
Pest and building inspection	$500
Total deposit required by bank	$20 150

The total mortgage repayments each week were $190, covering both principal and interest. With the unit rented out at $200 a week, it would basically be paying for itself!

When I was buying my first property, lots of terms I was unfamiliar with were thrown around by the bank and the agent, so I have included some basic definitions for the newbies out there.