Bret and Donna Ireland, December 2015

Bret and Donna Ireland

Since joining the Real Wealth Australia Mentoring Program we have implemented the processes as stipulated in the training (ie budget, borrowing power, goals and strategy).Bret Ireland

We are currently in the process of building a triplex and we anticipate it will be completed by the end of February 2016. Valuations have indicated that the completed price of each unit will be $400000. We entered into a fixed price turnkey contract of $315,000 per unit (incl land) I believe the instant equity taking into account interest will be around $70,000 per unit. We have received rent appraisals on each of the units ranging from $400 – $430 per week. Strategy: Buy and Hold – positively geared.

We have also had a property built in North Qld for which we paid $415,000 and was valued by the bank upon completion at $477,000. Unfortunately, prices have slipped with the opening of an estate nearby to $400,000. The rent on the property have also slid from $470 per week to $420 per week. This property has gone from being line ball cash flow positive to cash flow negative. We built the property as a medium term investment and see the adjustment in price as a short term hick-up. Strategy – Buy and hold (for the time being) – negatively geared.

In September of this year we purchased a duplex for our two sons. We have always had the view that we would help them to gain a foothold in the market when the opportunity arose. Upon purchase the duplex were not strata-titled and were purchased for $660,000. A rental appraisal indicated the rental per week on each unit would be $410. As it turns out each of our sons now live in a unit each. We believe the cost of strata titling will be approximately $10,000 in total and should increase the market value of each unit to $350000. Once the strata titling is completed our sons will have the units revalued and should be able to pay back some of the equity we have invested enabling us to reinvest in another property. Strategy Buy and Hold – Parental help to our sons.

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