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Thanks Barney, good advice.
I have found a bunch of CF+ properties due to their depreciation. It did take some homework as you said so I agree with you fully. I didn't get them as a free lunch.
Oh, and grats on getting to a place where you can start getting into it. I love to see how you go!
Hi Semetha
I'm not an experienced investor but I know where you are at. I'm in a situation where I have one IP with about 200k equity. My plan is to draw on that to renovate/develop or somehow improve properties to sell quickly for profit. I plan on continuing this until I can have my own house paid off and have a growing amount of rental properties to replace and eventually exceed my income.
I have no advice for you except to check out this link… https://www.propertyinvesting.com/webinar/archives
It's on this website and encourages three main things (as far as I can gather):
1) Plan what you want, eg $20,000 or $50,000 profit per trade, or $20-50 positive cash flow per house?
2) Choose a method of investing, eg renovating, developing, flipping, wrapping etc
3) Choose an area and become an area expert, eg get to know the agents/sales/market…
4) Crunch all the numbers for worst case scenario, and have different options written up, eg renovate plan, demolish and develop plan, and subdivision plan all for each opportunity that presents itself.
When you have done that, (as I'm learning to) I believe that the opportunities will present.
If you are smart enough to choose investing at such a young age and as you are obviously focused and hard working enough to save a deposit and purchase costs, then I think you will be going great very soon.
See you on the other side bro!
Just two notes:
Management fees are closer to 9% of rental income and…
Valuations must be done by a valuer NOT A REAL ESTATE AGENT!! Agents are not qualified to value anything.[crying] They can only give appraisals. Appraisals are what they “reckon” you can get.[cigar] Sometimes this is not even anywhere near the mark (for various reasons[hmmm]).
That’s my two bits…[biggrin]
Also, work out what you can get on depreciation for the house/fittings.
ONE LAST COMMENT: Take action! Go for it! Do something!![lmao]
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
A bit of encouragement![king]
Great to see you taking heart and going for it Romina!
I was in a similar situation to you three years ago. I was on about 33K salary and only had PPI.
I got sick of not being able to do something so I changed careers, moved to a mining town and now I have about 150K equity to invest with, a salary that will support many more investments and my wife and 3 year old are living a nice quiet life.[shades]
It seems that you are going even further and starting where you are! That’s fantastic!![blink]
Well done. I’m impressed![thumbsupanim]
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
Thanks Marc
I’m basically looking at the two cheapest houses in a niche area that has lots of houses the same. The asking price (as far as I can see) is based on the presentation of the house and those around it.
A house across the road sold for 60k more than what they are asking for this one with the only major difference being a pool.
The nearest sale in the area is down the same street and sold for 20K above the asking price of this house.
I’m pretty confident that I can spend a little time adding value to this house, re-value and rent at positive gearing and cashflow.
I think I jsut need to be more confident in my DD. It all adds up by the numbers and I think I’m going to put an offer on the other place too! The second one is currently rented at 9.24% gross yield.
I’ll let you know how it goes…
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
Whoops, I can’t get it for some reason – “Still being developed”
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
Sounds scary when you say it like that but I have two thoughts:
1) I can only see the banks calling in your debts when a depression hits and property prices start to fall or stagnate to the point where they start re-valuing homes with high debt-to-value ratios.
2) Surely these plans can be modified to smoothly transition from ‘living off your debt’ to living off cash flow positive properties. Eg buy more than ten and when it is viable, sell down to a few to reduce the debt to income ratio and then have an income for retirement. Surely then the rising rents over the years will increase ones lifestyle the further into retirement you get. Plus you have growing assets that you can leave for your kids!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
I have spoken to two people who have rendered their entire house for under $500. I have also read in a forum that someone did it for $150 not including paint.[exhappy]
I have a practical suggestion if the bricks do come out about half a brick from the wall:
Hire a brick cutter and cut the juts off. Ask a tradie about it at your local bunnings.
The remaining surface will be very rough in the least and will require more time and materials to render but the result should be amazing.
Please let us know how you go.
Thanks Chris and Mortgage Hunter.
I think I’ve decided on starting on a plan. I seen a few other guys plans and I’m astonished that after years of not being able to do anything due my circumstances, I haven’t used that time to design a good plan.
[withstupid]
I’m going to rifle through some other forums about people’s plans and the pitfalls, pro’s etc of each. And I’ll start another forum asking people what their plans are and how successful they have been…[rambo2]Thanks for your advice guys![thumbsupanim]
IP was my own home for 5 years. I have moved to a mining town and therefore I cannot duplicate what I have done. Unless of course I want to retire when I’m 90.[whistle]
