Hi Steve and members
As a baby-boomer 56 years young I always had engrained
in my consciousness to own my own home. No other
wealth training at all. It wasn”t till I read RK who said
owning your own home was a liability, not an asset, that
the penny dropped.Our house is now on the market and proceeds will be used
for RE investing. The market is hot, hot, hot here. As soon
as a house comes on the market it usually sells within
weeks.I thought we could turn over a few houses in high capital gain areas to increase capital, then buy some to hold. Finding a deal will be interesting in this market but I believe we can buy well,
add value then sell on. Perhaps buy one to turn, buy one
to keep, buy one to turn, buy one to keep.Is this the best way to go or should we explore other
approaches such as buying holding, buying holding?To find houses that offer positive cashflow we may need
to drive out to towns that have low capital gains. Although
I have seen some properties in the local area that could offer positive cashflow
they would take a fair hunk of our capital for the deposit.I have
many talents but accounting is not one of them, so I
am a bit in the dark on how many houses we would
need to buy and hold to give us income as well
as cashflow to keep buying more houses.Does age make a difference? Although we are
both fairly healthy and enthusiastic we are probably
more cautious than a younger person. We also have to be realistic about our energies and the time we have left
to create the finances needed for the future.Any input is welcome, hopefully this site and some
of Steve’s other resources will help in our decision
making.
TaraAge may be or may not be a hassle – perhaps it can be used as an advantage in the context of psychology and identifying who was serious etc.
It really depends on selection and ensuring that your strategy is deployed as correctly as possible.
Hi, Tara.
Why sell your property? Surely you will incur costs of sale, and costs to repurchase? Draw down on your equity in your home, and use this loan to make a deposit/s on investment property/ies. I am an older baby boomer, and like my present home (in Adelaide). Age makes no difference, except that you have less time for compounding to work than those younger!
TerryTara,
I am 31 years old but am facing a similar dillemma. I am currently thinking of selling of my house and realising the asset so I can invest in a lot more real estate. It is a big step as we live in an area where property is going up but we are still very keen to achieve financial independence. Drawing down on the loan is an option but being able to have a lot of cash makes things even easier. Not sure which way to go.Tara,
I agree with Terry’s point.
Why sell? You can always just redraw and use those proceeds to invest.
Tax deduction is still available and you are not uprooted from your home.
Regards,
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Tara,
When you’re going to live to 100 plus [
], your age is not so much of a factor is it? I found the free articles on the http://www.propertyinvesting.com site were good to get more of a handle on strategies, mindset, direction etc.Cheers
Chris B
quote:
Age may be or may not be a hassle – perhaps it can be used as an advantage in the context of psychology and identifying who was serious etc.It really depends on selection and ensuring that your strategy is deployed as correctly as possible.
Hi Everyone
It was great to receive your replies and support. Wonderful.
We have been feeling pretty much alone on this journey. Most
of the time I feel I am moving around in the dark.I am gaining heaps of experience though as we go along and
hope to share some of this on the site.Normally I would agree with suggestions to keep our house
and refinance. Here are the problems we face, I would like
your feed-back.1. The house is in a low capital gain area, one of the lowest
on the Sunshine Coast. We are about 25 mins from the
coast itself. It seems people want to buy out here but
perceive it to be much cheaper than the coast. The same
property in Buderim, Coolum, Noosa etc would be
worth $100,000-$200,000 more than what we can achieve here.
We felt it was better to free up all our capital and re-invest
in high capital gain areas such as the beach, maroochydore
or other areas where the majority of people are prefering to live.It was more of a lifestyle choice to buy this place.
My partner has put in sweat equity and the house and
land looks great. This has helped and the price has
increased some but not like on the coast.2. It is Rural A catagory….big problem it seems for lenders.
Because we have a very low income at present
(health reasons) it is difficult to even get
a loan and then interest rates are around 9%. With
another 1% or 2% rise it makes it pretty high rates. Also lenders
will only give us 60% of value (Rural A again).Our lender has told us that if we buy a house in town
Res. or Res Rural the rate will be 6% and they will
give us up to 80%. Big difference hey?3. We have put heaps into preparing the house for sale.
We are concerned that if we rent it out the house will
start going backwards as far as presentation.
We may lose a lot of the time and money we have
invested to present it well.4. Being acreage it is a lot to maintain. Apparently tenants
have to keep it mowed. The continual growth of weeds
would be up to us and we are both getting to the stage
we have had enough of weeding etc.5. Although we love it here heaps, I personally would
prefer to be closer to facilities.Feed-back is welcome.
TaraP.S. Deero If we were in an area that was going up I would
consider keeping the house. Then again it would depend
on how much capital I had in the house and how much debt.quote:
Hi, Tara.
Why sell your property? Surely you will incur costs of sale, and costs to repurchase? Draw down on your equity in your home, and use this loan to make a deposit/s on investment property/ies. I am an older baby boomer, and like my present home (in Adelaide). Age makes no difference, except that you have less time for compounding to work than those younger!
TerryThanks Tara,
We are going to keep the place (I think my wife would kill me if we sold !!) I have been learning heaps lately about how to structure the finance to maximise the property purchases available. This forum has opened up to me a whole new world of options by way of no docs loans….Thanks once again for the forum Steve and thanks for the advice Tara.
Enjoy
AD[:0)]Hi Andrew
If you want the phone number of the Ray White broker I mentioned in our email, let me know. There is also another
broker who said he could get us no doc loans. It would
be good to sus out who offers the best rate.
I have three brokers now to compare with.I was told the Ray White broker is paid a wage so she may
not be guiding us towards loans which pay her the best.Some brokers get paid three ways:
1. $1500 from the borrower when he gets a loan approved
2. $ 250 from the lender
3. A royalty payment on each payment the lender makes.There may also be high admin costs.
I wonder how unbiased a broker can be when hunting down loans.
Still if a broker can get a better interst rate it may be worth
the extra charges. It all comes down to us becoming as educated on loans to know ourselves if it is a good deal or a lemon.
], your age is not so much of a factor is it? I found the free articles on the The topic ‘Does age make a difference to approaches’ is closed to new replies.
