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  • Profile photo of springchickenspringchicken
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    @springchicken
    Join Date: 2005
    Post Count: 5
    August 7, 2005 - 8:01 am

    Hi Dazzling,

    I’m not going to say “choose family over money” or vice versa. Obviously your dillemma exists because you want both but you’re finding that the two are mutually exclusive.

    You’ve said your ambition is to become a fulltime property investor/developer. This would be ideal since it would allow you to be your own boss, pull in the big money AND work from home and spend time with your daughters.

    The question then, is: do you have a concrete plan in place to become a fulltime property guy? Do you know what you need in cashflow/equity terms and how long it will take you to achieve this? If you’re only a couple of years away, then slog it out at work. This might mean two years of missing out on quality time with the kids, but then give you heaps of quality time with them well before they all become obnoxious teenagers.

    If the timeframe is more like ten years, then perhaps it is worth holding off serious money-making until your daughters reach the unpleasant teenage years.

    Of course, I WAS a teenager just a couple of years back, so my advice isn’t exactly based on any life experience!

    Profile photo of springchickenspringchicken
    Member
    @springchicken
    Join Date: 2005
    Post Count: 5
    August 6, 2005 - 1:55 pm

    Hi Dazzling,

    Thanks for your advice. Your approach is pretty much spot on with the advice I got to get to where I currently am. Given that I’m pretty much at exactly 80% LVR, logic dictates that I should just sit tight and let the capital grow.

    But you know how young the restless can be. I suppose I just want to use the waiting time to explore the other approaches to making money with property, especially if there’s some way I can take advantage of my current position.

    In response to your final point: I always say “I’ll move out as soon as I scrape some cash together” and when I do save up some money, I invariably end up putting a deposit on another IP. It’s almost like a sickness :)

    Profile photo of springchickenspringchicken
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    @springchicken
    Join Date: 2005
    Post Count: 5
    August 6, 2005 - 1:44 pm

    Hi neo25x5,
    Yes, losing 16k is obscene! Lucky I get a fair bit back in my tax return, but still…

    To answer your questions:

    Losing 16k doesn’t affect me too much personally since I live with the parents and I keep my life fairly simple – so if I wasn’t interested in investing any further, I could carry it off indefinitely. From an investment point of view however, shaving 16k off of my net salary greatly reduces my ability to expand my investment portfolio or get financing.

    My parents aren’t going anywhere. And if they had their way, I wouldn’t move out until I got married – so no danger of being kicked out :)

    As stated earlier, I think increasing my salary is probably easier and more effective than selling a property given (1) where I am in my career and (2) the current state of the property market. Obviously I can’t increase my salary indefinitely, so I will need to adopt a new strategy sooner or later. I suppose this is the most common problem of anyone who adopts the buy-and-hold strategy?

    Re-evaluation is definitely needed. Any advice you can give is most welcome!

    Profile photo of springchickenspringchicken
    Member
    @springchicken
    Join Date: 2005
    Post Count: 5
    August 6, 2005 - 8:44 am

    Thanks for your response, Hellman.

    You certainly raise a good argument for selling a property – something I haven’t even considered until now. My main concern is, selling a house will only really increase my cashflow by around $3300 per year. Given that now is not a great time to sell, it might be less messy for me to simply try to raise my salary to $65k – which I think I’m in a position to do.

    That would only leave the issue of getting deposit money together. Does anyone have any experience of borrowing money without 20% deposit? Will lenders allow this for borrowers with proven ability to make the repayments on large debt?

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