G’Day All,
I am a newbie, I have just finished the book 0 – 130 properties. I just need to confirm my own thinking. I own a property in Townsville, bought in late 2003 and lived in as primary residence (defence family move every 2 yrs). Current conservative value of $350k I owe $120k, with gov paying $120 of the interest for me a month. The property is currently rented at $330 a week. My thoughts are before I embark on my real estate empire is to use equity to renovate (approx $30k) so I can increase rent and value of property and push me into +CF territory as at the moment as the property costs approx $5000 a year (maybe I have set aside to much for maint, managers and all other costs). I already have a guaranteed passive income of $55k (CPI indexed). I would like to increase this substantively so my wife can retire and we can maintain our same standard of living (medical issues life is short, need to enjoy life a lot more before I no longer can). As I already have this passive income this will be my full time job / hobby. I would just like opinions on wether to focus on this current property first whilst I learn the ins and outs of full time property investment and forming our own family property business.
THank you all forumites for your wisdom
GavrossIf I was you I would check out if you are able to get finance with a passive income.
Lenders can be difficult to deal with if you do not have income from a job.Thanks for your comments it is greatly appreciated. Lenders have no dramas at throwing money our way as we have already bought and sold another property in the mean time. I do have an appointment this week with a financial advisor. I am doing a lot of research at the moment and have also booked in for a few seminars. It is just decisions, decisions on which way to go. At the moment my thinking is to get the current property to a neutral setting (which shouldn’t take to much effort) before starting any new property purchases. I intend to crawl before I walk.
If you do up the rented property are you doing the work yourself. What time frame are you going to not have any rent coming in and are you waiting for the tenant to leave or are you making them leave?
I usually only do up a property in between tenants as I am then not kicking out a tenant and an existing tenant might not like to pay more rent and is happy living in an un- renovated house.
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