Ok. Lets compare this to my first investment property also bought in 1997.
1. Two bed Unit in Mentone (Melbourne, Bayside surburb about 18kms from city) – near shops, station, beach, great Schools. Bought Jan 1997 for $90k.
2. No deposit. Used equity in PPOR to finance. No money down. SO thats what they mean.
3.Rent was around $135 a week. Rent now is $205.
4. Spent $10k. Painted, new carpets, new kitchen and landscaped backyard.
5. No rental hassles. No lost rent. Average tenancy has been 18 months.
6. One sold in the block a few weeks ago for $255k. But it was unrenovated. Old Kitchen. Probably now worth $265k.
So if you had bought three properties in Sale at the same time. Its almost like line Ball.
So it sounds like as part of a portfolio of properties there is room for some rural properties.
Its just that you may have to work 3 times harder as you have 3 properties to manage.
Those are fantastic figures yack and bigben and no doubt you are very happy with them, I would be.
But I love cashflow. I love knowing that every week someone is paying me. The thought of maybe making $100,000 in 10 years is quit appealing but that is too long a time for things to go wrong. You take the same risks I do with tenants and vacancy ect but you also must invest a hell of a lot more money and run the risk of the market taking a dive.
No matter what happens to the market at least there will always be someone wanting to rent my place.
But I believe the way we invest is dictated by our family/financial circumstances.
It comes down to how much money you can lend or how much of your own house you own. If I could have afforded to buy a property in Syd or Mlb then I would have. Most people can’t afford to break into those sort of markets.
I have only just turned 32 in Feb. Am married and have 4 children. We own 1 car and are paying of the other. Three of our children attent private Christian school. We own most of our 1st investment property. Wife is just starting to go back to work now at 31.
I believe that by starting small, building up my family young ie miss out on a lot of things and only buying what I can afford will pay off in the long run.
Now my kids are in school, my wife can go back to work and we will have two incomes again. We have alot of equity in our little house and the incomes to service any loans.
For people like myself, borrowing $90 000 for a house was near impossible. I would be flat out spending that much on my own PPOR let alone a rental property.
So for those of us on singlelow incomes, we have to start small and work our way up.
I am however, [:p]very happy that you guys are doing well. Bet you can’t wait to cash in those houses and get that money. But then what do you do? Spent it, re-invest for retirement? I could die tomorrow. I’ll take what I can now and let tomorrow worry about itself.
You will always miss 100% of the shots you don’t take!
I agree with everthing you have said. I am in my late 30’s with 2 kids in kinder. They are 13 mnths apart. We are on one income but were on two incomes when we started.
Each case is different and I firmly believe you are on the right track. Keep it up.
Hi Ronulas,
Well this is wher you have me beaten see i have no kids. Im only 25 though so maybe down the track i might decide to bring another mini me into the world then i am sure to feel the drain on the funds.As you guys said you need to invest whatever you can afford and i bet that you are better off than others who did not invest in a $35000 house when you did so as said you will have to get there a bit slower but in the end with compound growth you will get there faster than someone who has not taken a shot(to use you litle comment)
My girlfriend used to live in Sale and she said it was very nice so i am sure that it will continue to grow so hold onto it as there is also a RAAF base close by so thats always good!!!
i suppose i had better invest like crazy before i have kids then!!!!
Sooner or later the man who wins is the man wo thinks he can!
Thanks for the perk up guy’s, I needed it. It does not matter how well you are doing, at times the doubt monster creeps in and niggles at you. Talking on forums like this can realy pick you up.
Bigben, at 25 you sound like you are realy doing well. Kids or no kids. Remember though, all the money/property in the world is not worth the memories I have with my family. Do both if you can.[
]P.S. I like your comment on the bottom.(Sooner or later the man who wins is the man who thinks he can!)
Yack, Keep on keeping on. A couple of kids and you realy know why you need to invest in property.LOL.[
]You will always miss 100% of the shots you don’t take!
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