To those of you who have more than one IP

Still newbies at this.
When ? about 2 months ago.
FInancial status
My wife and I have been married 26 years, six kids, and have always had enough, but not quite enough.
Inspiration was desire to have something for us to retire on, and I need some major surgery, that savings can’t pay for.
Owned 50% of our home, so leveraged this, bought 2 units of a 4 unit (existing) refurbishment, and have started from there.
Is almost CF+, but not quite. ($20/week total). I do the maintenance myself (gardening) for the 4 units and this provides more than that.
Had new tenants move in day after settlement, paying 30% above previous rents, which were when the property was in dire need of maintenance.
Sought out a quantity surveyor, and expect to fund the shortfall from tax savings and depreciation for at least the next five years.
Worked out the numbers ten ways to Sunday, and they actually turned out similar.

Our strategy is definitely buy and hold. Will add to this on review every 12 months.
Not rich by any means, but who knows.
Don’t need rich, just need confortable

okays, not too personal for me…

Got 7 at the mo. Cash flow neutral. First one was a 2 Br unit brand new in Qld in 1997 paid $175k.

Now worth 290k and is a nice investment.

I was able to afford the 20% deposit and had 10k reserve incase I could not rent it (Im quite conservative). Was probably on 45-55k pa (cant remember).

Tips for first one:
1. Dont trust the sales agent with what he says is a bargain and what he says it will rent for. Promised rent was $190pw could only get 165pw.
2. Do plenty of research. Thats what everyone says!
3. Watch the market cycle. I purchased at the top!

Hi guys,

Havent been online for a while……been busy sourcing more investment properties!!!

Investing in property started for us only three years ago apart from our PPOR. I was working part-time and my husband was self employed only 2 years in to the business and no income to speak of.

Sheer determination got us through. We were told time and time again by banks that although we had equity in our own home we didn’t have substantial income to get anything. We eventually sourced an old fibro house in a small country town in WA for $40,000. A got hold of a good broker who was able to get us a low doc loan using the equity in our house and we scraped over the line.

Again investment number 2 (had to borrow deposit from father in law but saw an opportunity we couldn’t pass up) another WA country property which we reno’d & sold for a very healthy profit 18 months later.

Profit went as deposit into property number 3 in an outer suburb of Perth (a run down rental in a not so desirable location at the time)……sold 12 months later and doubled our money.

Paid off PPOR and have purchased a few blocks of land around WA in partnership with someone else. Still deciding what to do with the land at this stage.

ALL THIS FROM NO MONEY………..never ever give up, there is always a way….you just have to think outside the square.

sq[biggrin]

21 y/o own 2 small apartments just outside Perth CBD 290k Loan but with about 140k equity so not a bad start for someone my age with boomsville. Hope to invest in queensland before the end of the year and still paying off my World Cup trip so i am living the life.

Hi all. I’ve been buying since 1994. Have 9 plus PPOR at the moment. LVR abt 26%.
Advice to newbies, watch you don’t buy @ top of cycle and don’t be tempted to sell. [biggrin]

We started off during “the recession we had to have”. Interest rates got up to 18.5% in the first few years that we bought our own home. ( Built in 1988) We survived. We then decided to build again once the interest rates dropped to 13.5%. We paid $130k(1994) and sold it for $220k 8 yrs later. In between time we have built again, just sold that one pd $160k & sold for $375, bought a townhouse, a villa, 3 house & land packages 2 apartments and a dual key. We currently have 8 rental statements coming in each month and since we haven’t built for a while we are about to do that again. We have found an area where land in a newer estate is not selling but houses are.I think people are daunted by the fact that they see a spec house for $125k and by the time they buy the land, build, and add all of the extras council expect these days the price has hit $450k by the time its finished. They think it is too much trouble and would prefer to pay someone else the extra $150k that these houses command when finished.

Bought first at age 21, $150,000 10 years ago and neutrally geared.
Saved deposit.

Took six and a half years to increase $1 in value (yes – thought about selling it a hundred times).

in mean time slowly grew a portfolio of shares with savings.

When Property increased in value (3 years ago), immediately geared against equity and bought cheapest four unit development site I could find within 10km of CBD.

Used income (fully franked income) from share portfolio grown over six years to then supplement income to help support loan on new property, (negatively geared).

Result – development site doubled in 18 months, other IP doubled in 10 years, share portfolio doubled in six years.

Intention now: selling down part of these invetsments to purchase and fully pay off my dream house and then start the process all over again as I am only 31.

I have only ever earnt an average wage, have not had any help from parents and also took two years off to travel the world in that time.

Any long term wealth goal should always be balanced with a quality of life and enjoyment whist we are young.

I hope the message here is not timing the market but time in the market, diversifying your investments and starting young.

Cheers

If you use the equity in your own home to purchase an IP your PPOR will need to be held as security. Once the IP increase in value and the LVR gets below 80% then this security can be taken away.

For most people equity in their home will be the most accessible way unless you have a spare amount of cash sitting around to put a deposit down on the IP.

Hope this helps

Sorry, basically LVR means Loan to Value ratio. eg if your loan was 80,000 and your property was worth $100,000 then your LVR would be 80%. It is this LVR that banks use to work out how much they are going to lend you.

Therefore if the property increases in time to say $200,000 and your loan is still at $80,000, then your LVR is now 40%. This means that you can now borrow this equity back to say 80% and use these funds to either invest (best way) or go on a holiday and buy a new car (worst way).

Hope this explains it