Forum Replies Created
What strategy are you interested in?
You could go to the Think and Grow Rich free ones. They have different presenters to give you some ideas of what's around. Just leave your credit card at home. The good thing about these is they give everyone a set of books and CD's.
They are quite motivational and I think great for beginners..
Escal8 wrote:Great thread everyone! Some awesome goals here! After being a lurker for 4 years, it's time to contribute.My goal is to sell my entire portfolio (5 properties) and start again from scratch. I'll be walking away with the same money I invested 3 years ago. From this I'd like to purchase 2 properties in the USA for cash flow, as well as renovate and flip 2 properties here in Australia.
What went wrong?
Good luck with your next investments.
Stone benchtops can chip, break. Don't be under the illusion that they are indestructible And definitely not cost effective.
As Wilko said a stone benchtop on a cheap property is overkill.
If the floorboards are good (they often are in old places) just polish the floorboards. Easier to repolish that repair tiles, lino or carpet. Personally I hate places that are tiled everywhere.I think it makes the place seem cold and uninviting. Like a rental, not like a home. I do like carpet in bedrooms though.
When buying fittings expensive doesn't always = better. Don't over capitalise (it's not your PPOR) buy buying stuff "you" have to have.
Look at items to see how sturdy they are, eg vanities. Some look like they would fall apart if you sat on them (don't ask!).
Yes unfortunately commercial hype takes over. It seems to be getting worse (now with Halloween added in to the mix). It is a shame when the gifts are the most important thing.
My hubby and I don't normally buy presents for each other. We have just made some big purchases for our home and we didn't need anything else. If there is something I see that he would like I get it. We travel a lot so that's our spend on ourselves budget for the year.
I hate shopping so find the present shopping stressful and it's a really busy time for me at work so time is difficult.
I love getting together with family though but am exhausted when it's over. With split families it goes on for 3 days. I'm thinking of moving one day to mid Dec or mid January. It will be more relaxed. It's all at my place. There are always a few tears ever year.
Have a great holiday break.
Hi Daniel. Where are you located and/or what areas do you have knowledge in (Sydney, Brisbane etc)?
I think it would be much easier to use common ground as you will be familiar with suburbs etc.
Great work with getting your finance right for your first purchase. Most people get that wrong which causes problems when moving forward.
With regard to setting up the company and trust- why did your accountant advise this? I'm assuming for asset protection.
Wouldn't that give you the answer to under which entity to purchase newly acquired properties?
I hope everyone had a wonderful Christmas.
Happy New Year and a prosperous 2014.
You could have the loan as interest only and put extra cash into paying down the LOC that way it would be less messy.
If your dad wants out then you could just refinance the loan.
I have to admit when I bought my first IP I didn't have any goals. I just wanted to own an IP. It was a good buy but I sold it too early (but made a profit). A few years later I was sorry and bought another negatively geared property. It's made money but not heaps. Lesson learnt.
Goals aren't static things so don't stress about getting it exactly right. Nathan Birch's goal was to have 10 properties and to put the rent up on each on $10 a year which in 10 years would give him $50,000 a year to live on. Then he could quit work. Never in his wildest dreams would he have made a goal of being a multi millionaire before he hit 30.
THEN in 2008 I discovered internet forums and like you started reading like crazy. My goal was to buy a property a year for 10 years and wait for them to go up, sell some and retire on rents. But things change quite quickly so be prepared to up your goals. I bought 2 in 2008, 2 in 2009 and then I "went crazy" (according to my husband).
At the end of 2008 I set an equity figure to achieve by January 2015 (giving me 6 years) that at the time I thought was a bit crazy. I've just hit that figure.
At the time I was focused of CG but soon realised that this wasn't necessarily going to let me retire so pretty soon I changed tactic and looked at cash flow. That is what lets you quit your job. I'm pretty reserved and conservative when it comes to my investing (compared to a lot of people I have met) but I am happy with what I have achieved.
Considering in 2007 I thought I would be retiring on the pension.
Go for it!!!!
Hi Joey I think you are on the right track.
Buying an undervalued house and doing a reno to increase equity is actually quite easy (just watch the Block LOL)
But therein lies the basic downfall. On the current influx of reno shows it looks like you can renovate a bathroom (for example) in a day. These shows are far from reality.
I have seen some horrendous renos and also some really nice ones all of which have lost money.
Basic downfalls- paying too much (houses in need of a reno are in demand = paying to much).
– underestimating the time and money to renovate.
– not matching the reno with what the clientel wants.
– over estimating your skills and doing things you shouldn't, resulting in a crap reno.
– overestimating the end valuation.
We have made some great equity gains using this strategy and all properties have been CF neutral to positive from day 1. This gives you the opportunity to buy again as you are in a better position than before you bought. The banks love that.
You don't need a big income with that strategy because each purchase puts you ahead. That was our strategy- To be in a better position after each purchase. When looking for properties they had to fulfill that basic need. We were in a hurry to retire and didn't have time to wait around for 10 years for CG so we made the CG ourselves.
Ryan- You CAN get finance but it's not easy. As I mentioned I got an 80% stand alone traditional loan. The other 25% I borrowed from them too but from equity in other properties. CBA
We originally said we were doing the reno ourselves and they would not lend for that. My BIL is a builder and he wrote us a quote for the work, then they passed it.
Is your friend a renovator? Does he know your target audience and what they demand (for sale and/or rental)? If not why are you listening?
Well I wouldn't do that because then you have no separate toilet. Plus those corner spa baths went out of fashion 20-30 years ago.
I'd go a normal bath and separate shower. Leave the toilet alone.
It depends on the bank. Some won't lend as it's not livable. Some even baulk if there are holes in the walls. This is where a good broker is very handy.
I bought one that I wanted an 80% lend on. The price wasn't much more than land value and I already had sizable loans with the bank. They came to the party the week before settlement. Lucky I had a plan B if they hadn't come through. Best to have good equity before committing.
By income do you mean CF+?
$260 rent – PM ($26) – strata ($35) – council rates ($15) – water rates ($15) = $169pw. Figures are guestimations. I don't know WA costs.
Interest on $205,000 (5%) = $197pw. Did not count depreciation either so with that it may be.
So no not CF+ but not everything is. It doesn't mean it's not a good buy. It may be a good CG buy??
Because you bought in a complex with a lift and a pool?
I don't see how you can borrow more. As mentioned you are already at over 90%. The stamp duty, solicitors fees etc will eat up the rest so you are already over committed. Time to save before buying I think.
Put excess money into an offset account until ready to buy. In the meantime research and be ready.
Yes it can be a great strategy but don't just assume you can strata them. There are things to consider- fire safety (fire walls, sprinklers) and other compliance issues that are different for strata.
Most things can be overcome but some may make it cost prohibitive.
Just look on RE.com and ring about a house similar to what you would like to buy. Ask what the rates are. Most agents would know this. Some list it on RE.com.
Yes babyflynn if they are not individually metered you can't charge (forgot to mention that). Thanks.
It depends on which state. Rules vary according to state.
Even in NSW where it is legal if water efficiency taps are fitted some landlords don't bother.
The tenant in that case is only liable for the usage, not the service, so you still need to pay it then charge the tenant for water usage.
