Congrats MKC. Well done. We have done similar, but not such a great extent as yours. Purchased 3 properties, over 12 mnths, about 3 years ago and now all are worth double or a little more.
Reminds me of a maxim I heard during an investment seminar I attended a few years ago, which is “Look for the Worst house in the Best street.” Not hard & fast but a pretty good guideline, I think.Forklift
I like the “Worst house in the best street” line and have used it time and time again.
I bought my first property just 4 years ago in a inner city Brisbane suburb, a 2 bedroom unit for just $67k. It was a tired unit in an ordinary block but had good access to transport, shops, schools etc. A lick of paint and the odd TLC job here and tere soon made the place rentable. I now receive $220 per week for it and it’s valued at approx $230k.
Have just bought another property in Adelaide, Beach Front for $250k, its the worst house in an absolute magic spot. It rents for $200pw but the houses each side of the property are 1 million plus properties, hope to develop my shack one day soon into 6 townhouses for $500k each. Moral to the story, sometimes there is more potential than just rental return vs purchase price
Cheers
Jeff Aquilina
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Thanks Forklift and Jeff.
Gees l dunno Forklift you sound like your doing pretty good to me mate , l wish ! Both you guys but anyway me l love the worst house /best street thing . My ugly duckling was exactly that but it’s got a 5 k strip of distant sea views , go figure .
The biggest thing l’ve noticed is the average person is very strange when it comes to something that’s abit ugly or whatever but it’s often just a clean up or painting , some attractive colours whatever . lt’s as if it could be gold plated and they still won’t touch it just because of some silly thing they could have fixed for 10 grand . They must sooner rather mortgage themselves an extra 1 or 200 grand even if they can’t afford it than save that and spend the 10 on something special – go figure , or live in a <edited>ty street instead .
l have learnt though that there is often a reason as in one up the road from me . lt’s around 100 grand under value and hasn’t sold yet but someone told me it’s sinking . That’s where the investers eye comes into play l guess .
Cheers.
MkcAnd thank you, in return, for the compliment Mkc. I wouldn’t regard myself as the “sharpest pin in the pack” but I think that the seminar, that I mentioned I attended, opened my investors eye(s).
And Jeff’s moral is pretty well on the mark too. This is where the ‘investors eye’ comes in to play as there are several ways to make profit from a property. Having the ‘eye’ helps one to recognise which method is best for a given property at a given time etc.You two seem like you have your respective heads screwed on right, as they say. I haven’t had a good chat, on line or off, with anyone up to speed in the investing world in such a long time. It is quite refreshing. Thank you both.
Forklift.
Don’t worry l’m hardly an investor as yet or the sharpest pin either. Due to 15 yrs of beach bumming in QLD among other places l just figured l’d better make up for lost time . So l tried to find a place in my own house that would still build a ton of equity as well as lifestyle . Hopefully then l could use that to springboard into some other property . Can’t have too much equity don’t they say .
Must admit though , since the boom slowing l am ready to start one now but the sums incase it dropped in value are spooky . l’m thinking the safest trick would be to try covering it with property that has two or three options just incase so l’m looking for that .
Good luck.
Cheers. MkcWe bought a Worst House nearly 2 years ago for $158k..
People selling were moving back to NZ and had tried to update it by painting and gave up..paint on the walls extended to the old ruffled carpet, light fittings, curtain rails etc
So we preety much had to re-paint, pull everything up and start again..this carried onto the yards were we chopped down tress, pulled out roots and various other plants, put in retic and lawns etc
Its now renting for $190 (to be reveiwed in June)and was worth $220k when we refinanced all properties for IP#4 (all IP’s are stand alone loans)about 4 months ago, we just had a new valuation (Doing all IP’s to see where we stand) and this came in at $250k
Our last IP though was easy, just a repaint, recarpet and tear up some slate (awaiting Vals over next day or two)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by redwing:We bought a Worst House nearly 2 years ago for $158k..
People selling were moving back to NZ and had tried to update it by painting and gave up..paint on the walls extended to the old ruffled carpet, light fittings, curtain rails etc
So we preety much had to re-paint, pull everything up and start again..this carried onto the yards were we chopped down tress, pulled out roots and various other plants, put in retic and lawns etc
Its now renting for $190 (to be reveiwed in June)and was worth $220k when we refinanced all properties for IP#4 (all IP’s are stand alone loans)about 4 months ago, we just had a new valuation (Doing all IP’s to see where we stand) and this came in at $250k
Our last IP though was easy, just a repaint, recarpet and tear up some slate (awaiting Vals over next day or two)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorNice one Redwing.
Look at how much equity in this thread alone between everyones deals , makes you just can’t waite to get more property .
Cheerswell done redwig….
but MKC…..”you just can’t waite to get more property“
what happened to diversification
Now, had redwig taken his $158k , 2 years ago, and bought a specific share in a mining company,
today he could have sold them for $832,000.Now I know theres costs
$29.95 brokeage fees when you buy
$29.95 when you sell
and that damm $3.85 when they send you the contract in the mailbut heck….
saves breaking your back over old carpet……sorry forgot capital gains….
now lets see
a profit of $674K
50% discount…that makes $337K that tax is paid on..
oh dear i’m on the high tax rate…..
ok….$168K for the tax office
but hey
i get to keep $506K profit, 2 yearsnow thats not bad for two years work……
diversification……lets not forget it
sorry to use this example
but i’ve only bought these shares 10 days ago
and i’ve been watching them grow at about 20 cents a daystill like property……
it will all come to a grinding halt……hi hb
From memory Loan was 100%, so none of our money apart from deposit..
Point taken re Shares, I sold out of MGX, REA, ZFX, ETR, PCG and a few others as triggers were fired some months back, I could’ve set profit stops but we wanted another Property (our preference)
Now thats all settled the goal is to leverage $100k into shares (80% so $80k) for Income this year and Purchase another IP (20% so $20k)
Appraisal came in for IP 4 (last one purchased)at $325k (up from $290k)Goal is to look at values, top up loans and access equity to move forward in 2006
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI’d use a HDT for IP’s and Shares to reduce tax..
I was going to say..you could’ve got burnt buying something like Sons of Gwalia(Mining) and lost out big time..but reconsidered, as I did buy them and sold at a profit prior to thier fall from grace some time back..
I like shares as well, but have a low risk tolerance I believe when it comes to shares ;o)enjoy playing but not too happy losing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorshares… a whole new frontier of expertise. it would be interesting to apply that leveraged scenario against Healthscope. fortunately the banks are risk averse a little more than that and would save ourselves from this tragic fate – the gearing levels are well down on margin lending for a reason.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Originally posted by hb:well done redwig….
but MKC…..”you just can’t waite to get more property“
what happened to diversification
Now, had redwig taken his $158k , 2 years ago, and bought a specific share in a mining company,
today he could have sold them for $832,000.Now I know theres costs
$29.95 brokeage fees when you buy
$29.95 when you sell
and that damm $3.85 when they send you the contract in the mailbut heck….
saves breaking your back over old carpet……sorry forgot capital gains….
now lets see
a profit of $674K
50% discount…that makes $337K that tax is paid on..
oh dear i’m on the high tax rate…..
ok….$168K for the tax office
but hey
i get to keep $506K profit, 2 yearsnow thats not bad for two years work……
diversification……lets not forget it
sorry to use this example
but i’ve only bought these shares 10 days ago
and i’ve been watching them grow at about 20 cents a daystill like property……
it will all come to a grinding halt……Good point , nice profits alright !
l’ve looked into shares but to be honest they scare the crap out of me . l don’t feel l would have the grasp / understanding . l was thinking about using The Australian Stock Report . Where as realestate l do feel l understand it .
So if your into shares what do you think of using someone like The Aust’ Stock Report ?
Any tips for a starter of say 10 grand . Rivfcan [forget his spelling ] said to someone once ” give me 10 grand and l’ll make you rich “
Unfortunately it wasn’t me , l would have thrown it at him.
Cheers
Mkchi jjaaus
i’m as so impressed with your ability to sniff out these’s great bargains…..
especially the beachfront property in adelaide, surrounded by million dollar properites.having neighbour of similiar ilk, i doubt whether any of them would have given their land away so cheaply…..lucky you.
Those guys don’t miss a bargain, and you would have thought, for that price they could have bought it just to put the second tennis court on?but the other thing that really surprised me, was your guts to put up a 6 unit development next door to them.
wow
now when a development was being introduced to our area,
my neighbours, with obviously far to much money, hired the best QC to put a stop to it.
I just don’t know how many millionares want a 6 unit development next door!well done…gutsy stuff….
hb
Originally posted by hb:hi jjaaus
i’m as so impressed with your ability to sniff out these’s great bargains…..
especially the beachfront property in adelaide, surrounded by million dollar properites.having neighbour of similiar ilk, i doubt whether any of them would have given their land away so cheaply…..lucky you.
Those guys don’t miss a bargain, and you would have thought, for that price they could have bought it just to put the second tennis court on?but the other thing that really surprised me, was your guts to put up a 6 unit development next door to them.
wow
now when a development was being introduced to our area,
my neighbours, with obviously far to much money, hired the best QC to put a stop to it.
I just don’t know how many millionares want a 6 unit development next door!well done…gutsy stuff….
hb
lt certainly was hb what a find .
Cheers .
Mkc
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