sitting here reading these forums and not be able to get our first investment property off the ground. Spend hours on it but struggling to get it happening.
They do say the first is your hardest.
Cheers
BenThe mindset that 1 IP (bought $81K rent $150) was enough and to buy anymore was just being greedy.
Over that now.
Hi All,
My biggest investment mistake was investing in the U.S. Trying to copy what we had here in Australia is impossible overseas.If I can say one thing to all those budding investors avoid overseas investment at all costs.We had 3 IP's in Perth late 1980's and sold them in 1992 as they hadn't really shown any growth in the time we had owned them and we didn't realise the full value of what we had. You have to remember back in the late 1980's you did not have any books on the subject or internet to learn from, so it was mostly fumbling in the dark in regards to property investing for us.
In 1992, we moved to Canberra and sold all three as they were negatively geared and we were fed up of making up the shortfall each month, We didn't make much on them as Perth was a slow market back then. The properties were in Myaree (paid $30k), Belmont (paid $62k) and Bridgetown (south west – paid $80k – 2 acres & house).
We were back in Perth over this past New Years and worked out that the Belmont and Myaree properties alone are worth well over $1 million to $1.5 million combined plus the country property would have been worth a few bob as well.
Still you can only look back and make sure we don't make the same mistakes again by selling. We have recovered well and have just bought IP numbers, 8 & 9, … we've lost time and equity, but you have to shake of the disappointment and move forward.
Martin
buying a house in 1991 for $66K rented it for $120 per week from the start and paid it off in 18months, should have payed the interest only and bought more property with my positive cashflow
second mistake selling my house that i owned when i started a new relationship, relationship now ended and starting all over again.
i read a good book title the other day "a man is not a financial plan' sooo true.In 1993 I got offered a block of land by my Uncle at Kilcunda; a small, sleepy coastal village south of the Philip Island turn-off in Victoria. It was $5k, and I had the cash sitting there; I was saving for my own PPoR. I said no thanks.
Good houses with views are going for $500k plus.Update-
The house next door settles this week. Other (nicer) neighbours said that they knew the buyer and price – $530k.I looked at another one 2 blocks away on the week end- basic reno job, pol floors but otherwise on a par- listed for 585K. I'm not buying as I'm concentrating on my business (and bank won't give me $ yet) , but doesn't seem to be slowing down here in Bris.
In 1992 we purchased our first IP. I don't know how we got the loan. We were on the dole! I guess it was a CF+ property so they – Metway Bank – thought it was safe territory. A brand new shop in a block of about 5 on the sunny Sunshine Coast. Well the sun didn't shine for too long. Yes there was a lease in place – with a beautifully presented Curtain retail business – we saw it through the window on a Sunday afternoon. Purchase price – 100k – leased for over a thousand buck a month. What a great investment. We don't have to put any money in at all!
It wasn't long before disaster struck.
Little did we know – and we didn't bother to talk to them before purchase – the tenants were on the edge and soon were bankrupt. Didn't give us a cent. Months later we finally got a new tenant at 760/wk. Not only that. A new block of shops were approved nearby which soon flooded the town with empty shops. When the new tenants bolted before their lease was up we were stuck with an unwanted IP. We ended up selling the thing after 4yrs for 48k.Of course there was a boom just after we sold. I never went back to find out the value post boom. Was too busy with building PPOR.
Gratefully our fate changed for the better. Doubled our money in 4yrs on a PPOR in Newcastle and then purchased land and built house in Northern NSW for total of 200k in 2003. 5yrs later it's worth 600k and has enabled us to draw on equity to enter the market again. Now doing residential instead of commercial and getting ahead – with first duplex project complete, second duplex approved and ready to build, and third duplex block under contract. How things can change over time eh!
Hi Everbody
We purchased 1 of 7 flats owned by 1 person, no strata required
They sold 3 more, we didnt know
Recieved a letter from new tennant which we self manage the other day from the new strata management about a meeting
We rang but were told we cant go because we owe $1350 & action was in place for debt collection
Turned out our solisitor gave them the flat address instead of our postal address
Either the previous tennant or agent tossed them or they were not sent
This tennant was 7 weeks behind but agent said nothing until we told them to get him out
They asked us to give him another chance
The strata said they will stop action if we pay but have to pay interest on back money
We will take to solisitor and tell them to pay interest ( fat chance even though we have a singed letter saying they gave wrong address )
We will miss 2 meetings but still have to pay for strata management
Little did we know – and we didn't bother to talk to them before purchase – the tenants were on the edge and soon were bankrupt. Didn't give us a cent. Months later we finally got a new tenant at 760/wk. Not only that. A new block of shops were approved nearby which soon flooded the town with empty shops. When the new tenants bolted before their lease was up we were stuck with an unwanted IP. We ended up selling the thing after 4yrs for 48k.
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