Hi all
As we do here every so often its good to share some of our recent succeess not just to show off but to encourage each other that we can still make some money in this game.i’ll start, i settled on this property about 4 weeks ago in a city of 120,000. Initially my offer of 65k was rejected and then i picked it up for 62k 5 days later (off to a good start). This was a run down 80 year old home with up and down floor and needed some money spent on it. It is in a beach side suburb of this city and i liked the location so off i went to get it fixed up. I used a team of guys who i’m now working closely with and ended up spending 30K on it. Acording to my 6 year old son, who is disgusted with me because i don’t do any work myself on houses now, he says i’m “not a real property investor anymore”.
Anyway i now have a home that would sell tomorrow for 135-140k (cost 93k), i have a tennant moving in on Friday who is paying 220pw , which is probably undervalued but she is a good tennant.Lets hear some more stories
regards westan
Well its good to share success stories and it keeps us motivated and makes the sacrifices worth it.
I sold a property last week. A 2 bed unit in bayside surburb of Melbourne.
Bought 2002 $220k
Other costs $10k
Minor Renos $8k
Holding costs after tax $8k.Total costs $246k
Sold $286k less costs $6k
Profit $34k
Not bad when you consider only $1k cash was invested as the equity from other properties was used to purchase. (Gotta be better than shares). It was a speculative purchase, as there was no deposit saved prior to purchase.
Now I am cashed up ready for better opportunities. Portfolio is now positive. I will sit tight for next 6-12 months.
Hi,
I bought a house in NZ last month for $40,000, which is rented at $130pw.
This is about a 17% gross return.This in itself is good, but I knew that the house was too cheap.
I had to have it valued by a professional valuer for the bank, and the valuation come in at $57000.
If I wanted to, I could probably put it back on the market now and sell it at around 11% yield for $62000. It would sell!
There are still bargains around. [biggrin]
Good luck all,
Del
Hi all
thanks Yack and Del for your contributions. Suireley the three of us aren’t the only ones who are making some money ???
please feel free to add your own story its interesting and encouraging to others,
regards westan
Oh a “braggers corner” [specool]
Just had offer accepted on Saturday for IP #4 which will settle in August. But I have mixed emotions about it at the same time; why????…..Even though I own my PPOR and all 4 IPs outright I will have to BORROW if I want to buy IP #5. [glum2]
I know what you’re thinking….would you like some cheese with your whine?????!!!!! [lmao]
Jo
Originally posted by yack:Not bad when you consider only $1k cash was invested as the equity from other properties was used to purchase. (Gotta be better than shares). It was a speculative purchase, as there was no deposit saved prior to purchase.
Now I am cashed up ready for better opportunities. Portfolio is now positive. I will sit tight for next 6-12 months.
‘I am trading options and made $39k just last week alone. I think shares (options) is better….J.J.’….Just Kidding Mate.
Great to hear some success story. I got nothing to add here at this stage. Hope will have something to show in the near future…
STUDY, STUDY, STUDY
DO, DO, DO
TEACH, TEACH, TEACHKind regards
Jet Dollars
[Retire Young, Retire Riches] [strum]Ok – purchased 3 bed cottage style house on 2400sqm block in city of 70,000 for 127k.
Split off block of around 1800sqm and sold for 125k.
House rents at 200pw and owes me 2k plus costs and is valued at around 180k
i bought a place for 19K a year ago which was dumpy but structurally sound and spent 8k on it, including a shower, new bathroom walls and vanity, polish floors, new fireplace, paint and curtains.
it has been rented at 115 a week for the last year (22 percent return) but it’s now been upped to $130 per week to reflect the market rising (25 percent return.) Also would have gone up in value about 50 percent.
I have another deal I got a year ago which i like even more because i didn’t have to spend any sweat on it. i bought it for 27300 and it rents for 110 p/w, Best of all I have never ever been there let alone spent anything on it, because it didn’t need it!
Even my poorest performing house (16K plus 8 to do it up rented for 95 p/w) has been OK at 20+ percent return but has had about $1000 maintenance issues on it so because that was in the first year it’s like paying an extra grand for it, it’s therefore now ‘only’ made me about a 19 percent yield, hahahaha
cheers-
Minijoy to the world
westdan, did your house need restumping and how much did it cost because I am thinking if it is worthwhile to restump a IP in NZ.
MiniMogul, are your properties in fairly small towns, and which state if you don’t mind.Purchased in NZ town of 50,000 people for 74k and rented for $160p/w. Have spent $4k on painting, repairs and new heater which will bring up to standard of neighbouring properties which are on market for 90k. Would invisage with capital growth that this town will experience 100k is not out of the question within 12 months.
Yack,
When you say
“I will sit tight for next 6-12 months.”
Do you mean you’re not intending to buy more property for that period?
Surely you keep an eye on the market and would snap up a CF +ve bargain if you found it?
Matt
Hi all
setmefree to answer your question, yes i did do some stup work but not the whole house. Can’t really tell you how much it costs over here. but if you ever ask for a quote ask to get it repiled, yes repiled not restumped. They laugh at you if you call them stumps over here, i just tell them piles are a medical condition in oz.bye westan
“I will sit tight for next 6-12 months.”
Do you mean you’re not intending to buy more property for that period?
Yes – I am going to sit tight and see how interest rates in the US go over the next 12 months.
Surely you keep an eye on the market and would snap up a CF +ve bargain if you found it?
In the markets I invest in – CF +ve is hard to find. I only want to invest my time and money in properties near where I live. I prefer growth properties so I am not interested in rural properties. So whats the use of having a rural ve+ property now but becomes neutral or ve- in 5 years time as interest rates hit their norm.
I dont believe we can sustain rural or regional property values in the medium to long term They may have been worth it 5 yrs ago but not now. Thats why Westan and McKnight have sold properties. Why else would they sell ve+ properties.
We’ve just accepted an offer for 330k for a place we bought for 170k almost 3 yrs ago… we were just about ready to take it off market… great result since we’d told the agent we wanted between 320k and 340k… cheers
r
Well done Richmond
Whose going to be our coach for next year ??? What do you do Saturday arvo’s ?
Great to here some stories , lets hear some more.
regards westan
I’d like to see Mark Harvey (Ess assistant coach) come over… might instill some toughness into the toothless Tigers…
Saturday arvos? Well, I’m often here in the 9 newsroom trying to put a bullein together… otherwise it’s something footy related…
cheers
rWell don’t let them hear that you have any free time on saturday arvo, they might come looking for you.[biggrin]. i’d better take this discussion on our beloved team to the forum fun.
westan
Hi there,
three recent purchases
one set of three brick 2 bedder flats total purchase 60K renting out at 245pw.
65K rented for 240pw after spending 5k and two weeks of a handymans time.
67K current vacant will rent between 220-240pw when tenanted.
That would be an average return of 19.02%.
All of these are sound, tidy properties most with new paint, carpets and good rental demand in area generally.That’s my boasting done!!
Cheers
CDCastleDreamer
“+CF properties in NZ available now”Hi there, to answer your question the ‘state’ they are in is NZ! Yes smaller towns of 1500 1/2 an hour out of town of 45000 and smaller town of 8000 about 2 hours or less from large metropolis w. international airport. So rural/regional but not remote.
Yack, welcome back, hahah, I was missing someone to disagree vociferously with,
“I prefer growth properties so I am not interested in rural properties. “
it’s a fallacy that rural/regional properties don’t grow. If Sydney properties went up 25 percent last year my regional ones went up more than double that in a year, more like 50-60 percent.
“So whats the use of having a rural ve+ property now but becomes neutral or ve- in 5 years time as interest rates hit their norm.”
Doubt that, rents go up. Like I said 20 percent return on purchase has become 24 percent or whatever less than a year later because rents are rising. rents tend to rise when interest rates do, because less people are buying and more renting…blah blah, the usual behaviour of a property cycle. So on one half of the cycle you are winning on cap gain and the other half you are winning on rental yields.
I’ll have a free house in 4 years which has given me all the cash back that I purchased it for, and then i could look at it as a free house giving me income for life. I can’t understand how come people don’t get it and still diss the strategy if they really understood it.!!“I dont believe we can sustain rural or regional property values in the medium to long term They may have been worth it 5 yrs ago but not now.”
You were never a purchase of my sort of properties back then when you thought they were ‘worth it’ so why would you be now? You’d never be, anyway sounds like!
When would it ever be ‘worth it’ to you? probably never. 60 percent cap gain and 24 percent rental yield still wouldn’t convince you. But hey, each to their own, no skin off my nose… if you can do better by doing nothing, so be it. your money, your decision. my money, my decision….
“Thats why Westan and McKnight have sold properties.”
they have sold a few properties I think, in Australia at the top of a boom and bought in to a different market or different kind of property.
AHHHHHHmmmmm I have been trying to tell you guys that for ages…don’t buy in Aus now, you won’t get the yields, and you won’t get a hell of a lot of cap gains for your troubles either, in my opinion. let it sink a bit more and when it’s really quiet and dead then take your pick and buy up large. but in NZ you’ll get both cap gains and +ve yields in my opinion, and right now.
i think a lot of the Mappers (oh yeah, you don’t believe in them either nor seminars…sigh) have been getting ahead by purchasing in NZ….“Why else would they sell ve+ properties.”
Let’s say you sold a 15 percent yield property for 90K and could buy two 45K properties with the same yields that will be worth 90 each in a couple of years, that kinda thing. trading one for two…I wouldn’t be selling my CF+ve properties unless either a) they stop performing or b) I want the money to do something else with i.e. building a business or putting it into own home, etc. But it’s a great place to store and grow my wealth indefinitely.
cheers-
Minijoy to the world
I bought AMP shares in Dec 2003 and have 45% return in 6 months!!
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