[
]Hi all, my name is karen and i found this sight yesterday afternoon and i have already spent a lot of hours checking it out. This has really motivated me to want to start doing something but a little scared as well.
we bought our first house 10years ago and paid $50k for it and really did nothing else, back then we had 4 kids and 1 wage and of course the mortgage. i started work 2 years ago in a great job so last year we bought a new house for us and kept the other. our oldest son and his mates have been living in there for 7 months now. (not good).
altogether we have a 300k mortgage with some rent coming in (sometimes). and properties worth around 500k. The boys are NOT looking after the place so thats one lesson we’ve learnt. now what i would like to do is to spend money on the first one (about $4to $5k should do it and then sell and do the same again and again and again. does anyone think it would be better for us to hang on to that and put private renters in or renovate and sell over and over. i think i’ve got the bug to buy and sell but just not sure.
thankyou everyone in advance
karenHi Karen,
Thanks for your post and welcome to the PropertyInvesting.com community.
Sometimes there is no need to sell, since that will trigger sale costs (such as real estate agents fees) and also capital gains tax will be payable.
An alternative idea may be to renovate (spend the $4k) and then seek to have the property revalued and refinaced.
You can then access your equity to go and do the next deal and so on. Be sure not to spend your redrawn equity on lifestyle expenses though as you will lose the interest deductibility on the portion you spend.
As for your sons in the property… sounds like you might have confused a lifestyle (family) decision for an investing decision. You’ll probably only make that mistake once [
]Thanks again for your post and don’t be shy about making more in the future.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Dear Kaza4k,
Unless you get an enormously huge offer, the buy and hold concept ( which has several variations ) is a much better long term wealth option.
Buy and hold can mean literally just that – hang onto the property and slowly over time the rents and the value increases, thus enabling you to buy more properties.
Or it can mean “wraps” – which can be translated as “buy, hold, but sell really slowly”. Again, rents / payments and values increase over time, and you still win.
Either is good. Selling over and over again involves too much work for not a guaranteed gain.
This is purely my opinion, so feel free to argue with me !!
BDM
thankyou both very much i think we will fix her up and keep her then as you said re-finance and revalue and buy a third one. also when we bought the new house that we live in the finance company that we went through combined both houses in one. now shouldn’t we split them up to prove that we do have a pos-cash flow from the investment one and have int only on that first one and P&I on our home.
thankyou again
karen[
]sorry but i just have to say that as you can see we are both straight from the cradle and i think we have gone the wrong way around,
thats why i’m here to learn and get things right.
we have got a program from john fitzgerald called untold wealth success from scratch and are in the middle of learning that now. (i hope i can say that).
but i really love this forum and i’ve been here a lot looking and learning so thankyou very much for being here.
karenHow do you find the Program by John Fitzgerald.
Enjoy
Enjoy
AD [:0)]“Don’t dwell on reality; it will only keep you from greatness.”
-Rev. Randall R. McBride, Jr.Hi AD
john fitzgerald program is really very informative and it is opening my eyes. it is all about cash flow positive and wealth building passive and active. very much the same as here. i’m only about 1/4 of the way through but i have scanned it all, now it’s just a matter of learning everything
when i’m not on here learning from you guys then i’m reading his work. (forget housework and almost forget my off-spring lol)
so much information i hope i can keep it in.
karen[:0)]To AD
sorry i was wrong,
last night when i was ready more of my program on john fitzgerald i did discover that he does prefer to negative gear. i thought he worked on cash-flow pos but he doesn’t. i lot of what he talks about though is very good and does explain and teach a lot about cash flow management, tax, equity, and different strategies but my husband and i have always believed that if your not cash positive how can you keep adding to a loan if the money is not coming in.
if all your doing with neg gearing is topping up then there must only be so much you can do.
does this make sense to anyone.
i know with neg gearing you can claim on a lot at tax time but if your making that money on a weekly basis doesn’t that sound more sensible.
oh boy how will i ever get it. lolkaren
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