we got our first offer on the first house we have ever sold
its only unfavourable by $8k so im hoping that they will come up once they get our counteroffer.we bought the house for $250k in May lastyear, did $8k of renos, and are having to sell because we can no longer afford to restump due to unforseen employment issues. we are selling it so that we can put our efforts and $ into something more suitable to our budget.
we are wanting $325k but have an initial offer of $317k … so "fingers crossed"!!!!!!!
not bad for a 12 month investment
i wish we could held onto it but unfortunately being on one income when we expected to be on two is creating issues for us.just had to share with like-minded individuals!!!!!
Well done Karen.
Is this your house in Mackay?
yeah thats the one.
woohoo our counteroffer got accepted. contract signed tomorrow morning
soooo happy!! only 2 weeks on the market. Congrats. Thats a nice tidy profit, will you be putting some back into investing again?
yep. we are going to get a three bedroom brick house next that needs renos but no structural stuff.
we were going to wait 6 months before buying again because im due to have another baby any day now (only 11 days til my due date) but with the contract now having all the signatures i know im gonna have a hard time not putting in offers once it settles. all that investment dosh sitting there in an offset account against our other IP. begging for me to invest it
im sure my husband would understand ……Nice job there. It was a good time to buy back then, before it got super-duper crazy in the second half of '09. People who did buy in that second half and under competition probably overpaid but the market might have caught up already by now.
Just out of interest however, after costs of selling and capital gains tax, how much profit did you get?
our accountant plugged the numbers for us and we will walk away with $316k after settlement out of that $325k. thats after agent fees and CGT etc. we got our agent at a discounted rate because we used the company that also does our prop management. the CGT will be only $5k because I am unemployed and my husband isnt on a grand wage.
to buy the house it cost us the $250k, plus $8k renos, $7k stamp duty, $2k legals … but then some of that was claimed back on tax. im not sure exactly how much we got back from this IP specifically as obviously our tax refund included our other IP plus salary stuff.
so if u take the whole process into consideration from beginning to end will walk away with $50k in the hand, plus whatever tax benefits we had last year and this year. ive kept an up-to-date spreadsheet about the property since we bought it and it indicates the property was neutrally geared with us being in the black by about $1000 throughout the 09/10 tax year. it was rented the entire time (except the first week) for $340 p/w rent.
in effect we doubled our household's after-tax income for the year. with me not returning to work when planning to this has really helped.
Thanks for sharing the numbers – go to be happy with that outcome. Nice work and well done.
karen. wrote:so if u take the whole process into consideration from beginning to end will walk away with $50k in the hand, plus whatever tax benefits we had last year and this year.
That's fantastic! Can't argue with an extra $50K…it'd take me more than a year to earn that from my job too.
yeah, but it still isnt enough to convince my hubby to jump back into finding another house. we had spoken about it and wanted to wait awhile. but then yesterday a beauty came on the market that i wanted to put an offer through for. i had a walk through this arvo and its already listed at an amazingly good price. the owner was out the back of the property so while the REA wasnt there i had a bit of a social chat to her and found out that she is selling cos she is flat broke and needs it gone ASAP. just what an prop invester needs to hear!
i have done the numbers tonight on it and rang hubby (he is out of town at the moment) and he basically slammed the phone down on me haha. said i ruined his state of origin night
im banned from talking investing for 4 months he reckons. cos he wants to be able to relax and enjoy not having so much debt for just a few months before i delve into it all again.
i personally think that he should just be thankful that my last little "project" made so much and trust me to try it again
but oh well. the man of the house has spoken!!!And I'm sure the woman of the house will have a way of turning him around!!
Karen, you are a little ripper. I am sitting through State of Origin at the moment.
Don't worry, most men just need a little nudging from the woman of the house because as my other half often quotes "Happy wife, happy life".
Wait till the baby comes, he will be pretty eager to get out of the house and a little project might just help him out!
Hehe we've now got 2 and they know about "the building site" and diggers, and trucks.
Good luck with all of your projects (babies and houses)
D
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its only unfavourable by $8k so im hoping that they will come up once they get our counteroffer.
im sure my husband would understand ……
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