Forum Replies Created
Simon_G,
I have 3 properties in the Rockingham area, and until recently, lived there for the last 12 years (just moved to Adelaide) but I still maintain them due to the fantastic growth of the area (close to 18% over last 12months, in the 20’s for the couple of years prior to that). That’s based on bank valuations.
I would recommend you look elsewhere to the Anchorage Estate, I think the price is getting up there, for what you are getting in the area you could do better. The blocks tend to be pretty small compared to many in the same area. New houses are nice and new building activity in this area always draws the crowd and drives the price up, but the gains are similar for the older places around the coast.
Try looking around Shoalwater, there are a few older places that could be developed, and far better location. Great capital gains for the long term.As for me, the area called “Old Warnbro” has been a winner, big blocks, older houses (still low maint.), 5 min walk to a beautiful natural beach.
I also happen to be going there next week for a visit. Looking forward to the sunshine.If you read the papers and RE mags, anywhere between Rockingham and Mandurah has got great growth potential over the next couple of years, but I would stick closer to the infrastructure in Rockingham, and to the beach side of Wanrbo Sound Avenue / Read Street for best results.
Cheers,
Damo.
carly.matt,
Maybe you have just received some good advice and missed it. Find an investor group in your city and go along with your mind open (but your hands in your pockets for now).
Damo
cama_20,
Your situation is quite favourable, as well your knowledge of the property (having lived in it already) you are in a good position to buy the property at a reduced rate. The current owner will have to seek your permission to show any other perspective buyers around.
In WA (unless you agree otherwise) 7 days written notice is required to enter the property. This is a big negative for the owner (or their agent) wanting to show people through. You don’t need to be nasty about it, but it gives you an edge to make a lower offer. I bought my first house this way.
Damo.
Hi there Endless Summer,
Sounds like there are plenty of people out there going through the same issues. The common thread I guess is “It can be done” but its hard work (isn’t everything when you first start).
I have 3 children (10,5,& 14 mths) and we have been increasingly involved in real estate investing over the last 3 years.
We have been to so many inspections with the kids(100+), that my 10 yo daughter is getting to know what we are looking for and can be a great help.
We do get the normal complaints – “not another house”, “can I wait in the car this time” etc. But we both decided that this was going to be a big part of our lives for a long time, so there was no point in not involving them. Who knows, they may even pick up on some good ideas, at least its better than sitting in front of the tv watching reality shows.
This is our reality.
We have lived in two of our houses as we did reno’s. The first was only relatively minor – full paint job internally and garden work on an unloved house, so not much impact on our lives. The second was a full kitchen and bathroom gut and refit (took me 1 month for the bathroom alone) we were all taking showers outside for the whole month. Thanks to a warm summer in Perth, this was kind of nice (although the girls were more nervous about this than the boys).[biggrin]
We currently own 3 IP’s, and have one income. I go to a day job 40hr/wk and my partner does what she can inside school hours, while looking after our youngest. Some days this can be nothing, other days we can get heaps done. My partner tends to do a lot of the ringing around during office hours, and co-ordinating things so that after work or on the weekends, we are all go.
Our social life has probably taken the biggest hit, but true friends want you to succeed in what you are doing, and don’t really care how much time you can spend with them.
It is very important for us to try to keep a balance with time dedicated only for our family.
One day soon hopefully, we will be better off financially, and we may be able to pay people to do most of the work. But for now its us against the world, and I think we are slowly winning.
As Dr X suggested, don’t wait untill your kids grow up, every year you delay, makes it another year before you reach your goal. Get into it…
Damo.
jassi13,
I have recently moved from Port Hedland after working there for 12 months.
The rental returns are great especially if you have a house in the executive market, but the entry costs are high.The rental turnover is also cause for concern in the cheaper places. There tends to be a lot of people move to the area for 3-6 months then leave due to the harsh conditions, or better money out with some of the big mining companies.
I too have been tempted but descided the risk for me was too great, for others this may be acceptable.
Damo.
Hi all,
I attended yesterdays Masterclass in Perth. I found it very useful and well worth the money. I must admit I don’t usually go to property seminars but I decided I needed something to get me over a hump in my investing road. This session gave me the insight into new ways to approach my goals.
I have three IP’s and read everything I can about RE, the masterclass was majic for me.
Damo
Thanks Dazzling,
I’m starting to find there are quite a few of us around.
WA – The land of opportunity
Happy to be involved in a gobfest sometime.
Cheers,
Damo.
Can anybody provide a reference to an ATO document or something I can read regarding nominating a rental property as your PPOR for 6 year to remove CGT?
I am in a similar position and am having trouble finding information.
Thanks
Damo.
Thanks island dream,
Sounds like we have very similar thoughts for our futures. Although you are much further down the track, how long have you been doing what you do?
Have you ever thought of one quitting full time paid work to pursue the investing / renovating full time?
Thanks to all who have replied to date,
To make the cashflow issue more bearable, we have the options of my partner returning to work (pity she is great with the tools), or drawing from a pool of cash set up for this purpose (which would need to be repaid on the sale).
I would only do this type of activity 2 -3 times so the ATO don’t see it as a business, which it isn’t. I’m really renovating my own home and selling it within 6-12 months.
I have heard / read about a number of investors that use low or no doc loans. What sort of proof of income do I need have ?
Thank for the feedback.[ears]
Thanks for your encouragement Eric,
Sorry about the confusion, by multiple PPOR I meant, I would buy one as my PPOR and then sell it to buy my next PPOR, otherwise I would be slugged for CGT.
Damo.
I agree with scotty3, ring around and ask their rates, don’t be afraid to haggle. I recently used a new agent to manage an IP, during the negotiations I asked for reduced fees and a lower % of the rent (ended up with 8% but much lower inspection / report fees).
