Forum Replies Created
Rarhrahprincess…I'm happy to consider any good opportunity.
What are the numbers on your $150k reno property.
How much are you spending and what will it sell for once renovated?
Are you living in it?Thanks rarhrahprincess. Many years ago (mid to late 80's) we renovated then sold a couple of houses with great success. They were our PPOR (for 12+ months) at the time so no CGT was applicable when we sold them (happy days).
I've recently investigated the possibility of doing this again but finding a good 'doer upper' in my region is a challenge these days. With the proliferation of renovation and real estate shows on TV of recent years it seems as though everyone is wanting to have a crack at it, thereby creating stiff competition for (and forcing the prices up of) suitable reno properties.
Unlike years ago the recent market hasn't been growing at a sufficient enough to rate to make these projects viable.
However the numbers you quoted are fairly impressive…if you can steer me toward a reno where I can pick up $200k I'd be happy to explore the possibility.My intention has always been to build a property investment portfolio but for one reason or another haven't quite gotten around to it…yet.
I've been self employed for 6-7 years, the type of business I was in produced large but spasmodic income…some years plenty, some years none at all.
Upon advice from my accountant we set up a Family Trust and a SMSF which helped (from a tax planning perspective) in the 'big' years.
Unfortunately the GFC has buried that business.
The only 2 forays I've had into the share market have been disastrous…we bought in two days before the '87 crash and again about 2 years ago (just before the GFC hit). Stock we bought 2 years ago at $1 is now trading at 15c and dividends have been suspended…ouch!
I've spent the last two years waiting for the bottom of the market to 'make a killing'…in the end I just couldn't bring myself to risk my hard earned capital in the share market again. At 51 I just can't afford to stuff it up. So now i'm back at my original strategy…to build a property portfolio.I've been considering a strategy to accelerate the process of (using my cash) buying a large corner property with an existing house and building 1 or 2 new dwellings facing the other street…renovate the old house / subdivide off from the new dwellings and sell thereby reducing some of the debt on the new dwellings.
Then I would have the new rental properties valued and get most (or all) of my funds out to do it again. Hopefully they would be cash flow positive and pretty much look after themselves.Does anyone have any thoughts on this strategy?
