so, real quick.. i 've found a really cheap house in rural vic and can forsee an opportunity in it but being my 1st property i need to be sure.. i've checked indexes/trends in a country area i'm looking at and there is a market in, allbeit a small one ..
not great yields but i'd be in this for some decent short-term capital gain as i'm in a unique position being eligible for a host of tax breaks/concessions being unemployed such as stamp duty/land tax etc… and even if i did use it for positive cash flow rental i'd have more cash in my pocket than others as i'd own it outright AND wouldn't be offsetting non-tax deductible income against the yield so even rented at $110p/w for 48 weeks = 5k+ in my pocket and at that rate would only take 6 years to surpass the MINIMUM capital gain equation i've forecast which is: house = 30k + costs = 35k less 14k FHOG/FHOB means i'd own the property for 21k + 30k reno = 51k and sold at the BOTTOM end of the market = around 30k gain, and it goes up from there (assuming reno goes to plan and there are no blowouts with time/costs)..what you need to account for is the x-factor which i bring to an investment.. where most people would just dump 60k into a reno i can do the same work for about half of that.. i'd be resourceful, using salvaged/recycled materials and doing most of the reno myself..
remeber the adages of smart investing.. sometimes the best opportunities and suuccess come those who do things a little differently.. (if i was in a group of people were asked what strategy they prefer and all of them said financial planning, i WOULDN"T be doing that!).. and sometimes you end up watching the market more that playing the market and end up regretting lost opportunites.. speculators and investment theorists often make the worst investors!..
i'm wondering what others might do if they were in my situation.. pls help!
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