In a few months time I am to inherit a decent amount of money. I have 5 properties, a ppor which is owned, a holiday house which I will pay off, and 3 rental properties, all rented and in great locations but neg geared to various degrees. I will have about 300,000 cash, and a portfolio of 1.8 mil with loans outstanding of 475,000.
I can see potential for sub division, and knock down and build units/duplex's in my area and in others, but I'm unsure of weather i'm capable to do these deals, I do enjoy renovating and property pursuits of all kinds, but i'm not sure of my qualifications not to get myself into some horrid mess taking on these types of deals. I've thought of JV's where perhaps someone already experienced might share their expertise with me but, don't know anyone i'd trust enough to just hop into one.
My other thought is to purchase several investment properties, in areas of good growth and returns that I have been studying for a while and investigating, which are either close to +cf or should be within close time/small renos.
I've been thinking of doing some of the property courses advertised, in particular the reno kings ones to better educate myself so I feel more confident with my abilities to select and go ahead with deals.
My goal is to be able to make this full time, and resign from my job. What would YOU do if you were in a similiar situation? And thanks to my dear Dad, who's kindness is going to make this all possible, perhaps he has more faith in my abilities than I do, I guess the first step, is always the hardest.
Hi hgwells,
It's sounds like you are wayyyy beyond your first step
Your goal is to quit your job, so which part of property investment do you like best? Do you want to be doing renos full time? If so then improving your skills in those areas and putting them into practice would seem like a good move. Would you want to do the renos yourself or get a good team around you to do it? If it's another area of property investment then you can do the same thing in that area.
What would I do? Good question
We have a fair amount of money having just moved over from the UK. We paid for Steve McKnights home study course while we were in the UK but never ended up doing it (although I downloaded all the recordings). So for us we're going back to that course to improve our knowledge of the Australian market. We have already set aside a certain amount that we won't touch and is earning a higher interest , the rest we want to spend on cash flow positive properties, probably fairly local to us. This may mean adding value , as well as finding cash flow positive properties but we are not developers (yet).We find it useful to set the target in the future and work backwards to see what we have to do along the way.
Hope this helps,
Ask yourself if the holiday home is an emotional purchase rather than an investment property. And if you owe money on it and it is not a rental income type investment you are paying non deductible interest on it. This would be draining your cash flow and be non claimable. If you pay down some of the loans to make the properties cash flow positive you will be able to concentrate on paying the other loans off more to get them into a positive cash flow situation.
I would recommend if you are thinking of redevelopment of attending Troy and Becs property investor meetings that occur once a month. They post a notice in this forum when the next one will be on.
Duckster, the holiday house will be totally owned, yes its a luxury but not something i'd ever sell its only got a relatively small morgage on it, and its waterfront, so its value is only going up. We don't rent it out, but our family and friends all use it, and they contribute in lots of ways to its upkeep. I'm in newcastle nsw, so i'll keep an eye out for those meetings you mentioned, and i'm going to sign up for the course in melbourne later next month done by the reno kings, Women in Property. Thanks for the input guys
Life is a journey, enjoy the travel.
We have a fair amount of money having just moved over from the UK. We paid for Steve McKnights home study course while we were in the UK but never ended up doing it (although I downloaded all the recordings). So for us we're going back to that course to improve our knowledge of the Australian market. We have already set aside a certain amount that we won't touch and is earning a higher interest , the rest we want to spend on cash flow positive properties, probably fairly local to us. This may mean adding value , as well as finding cash flow positive properties but we are not developers (yet).
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