Good gutsy move folks [
]My partner and I have this exact same issue at the moment and given my commission based income it’d certainly make investing easier. We are opting to stay … so far!
What about the option of selling and buying again rather than renting?!? We’ve renovated 70% of our house and although the novelty is a bit tarnished we agree that if we found a dump in the right spot for the right price we’d sell and move, anyone else thinking of doing this? We’ve no plans to do this more than once every 18-24 months and use most of our funds for property investing elsewhere to avoid the ‘business of renovating’ tag from the ATO.
Having said that it’s tipped to be over 30 deg C in Brisbane this weekend, and MUGGY, so the ‘let’s finish the painting’ enthusiasm is waning … it’s the second time we’ve repainted in 12 months (cos I didn’t like the first colour scheme at all, doh) so it’s a hot topic, so to speak. Where do I find a good rental in Brisbane again …..?!?! [
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Mel
[email protected]Hi melanie,
We are thinking of doing what you are selling our house and with the 500,000.00 equity buy a run down property in a fairly good area live in it for a year to beat capital gains sell it, and in the meantime be looking around to find p+ properties. We are also buying a block of land which we will build are last home on.(We are in our 50s MoyaI too have decided to do this. I have my wifes backing which was surprising. So I will commit us before she changes her mind.
I sold it to her like this…
We have a mortgage of $250K
Our property income each week is -$350/wk as it is our mortgage repayment.If we used the equity to buy + cashflow IPs(1-2 at most the banks will lend) property income may reduce to -$250/wk at best.
If we sell and buy $500k worth of IPs our weekly property income would be at least +$250.
If I pay $150/wk rent. I am still left with at least $100/wk in my pocket.
That’s roughly a net difference of $450/wk that stays in my wallet. I can now use that to buy more IPs.
Please shoot me down quickly if this is wrong because the crib is going on the market once renos are done.
Nu Gen
I would be tempted if selling our house netted that kind of capital.
I’m a pure novice, but it seems to me that it is a sellers paradise. People are getting offers way over there asking prices because of the frenzy to “get into” proprety.
I wish I had a crystal ball so I could sell right at the end and rent for a while, then rebuy when interest rates and high rental vacancies sink the market.
cheers,
Darren.Selling the family home is always an attractive option given that its the only capital gain that can’t be taxed.
Often though if you cash in the house you cant afford to buy a home in that area again and end up living in a lesser area.
But maybe you dont like where you live or the house is not right ? Why stay ?
Your other option is to borrow againts your equity.MJK
Hi guys,
Im back. Well I am the one who started all this and wow, I didn’t think it would have got such a great response.
Our plan was to sell our house for about $950,000.00 wich would leave us with about $900,000.00 cash to play with. We already have three IP’s 1 -cshflow & 2 +cshflow. We were thinking of buying off the plan units at Breakfast point. But I think we may need to rethink and go possitive cash in large country towns.
The main thing is that we don’t realy want to stay in our house anymore as we have been overshadowed by the property development next door.
We would much rather rent in a luxury appartment and invest with the $900,000.00 cash from home sale.
Andrew & Sally.
congrats Andrew & Sally
sounds like you have done very well
By using the 900k as 20% deposit, you would end up with 4.5 million worth of properties. That would keep you busy just trying to spend it in the country areas. I would pay some of that
-geared property off to bring it back to +cf.Hi Rob,
Thanks for your advice. you are correct it would be a major task trying to spend that much cash on IP out in the country.
The way I see it though, is that we must get started as it will get harder and harder to find good +ve cash flow IP’s.
Andrew[8D]
Its late and it looks like im the only one on this forum.
Good night
or
Good MorningAndrew[8D]
Hmm, very strong words. From that reaction I can only assume that you aren’t a millionaire.
Tightarses are better than grumpy ones. [
]Darren, Perth
Not yet a millionaire.
But working towards that goal.As they say ” Rome wasn’t built in a day.”
Andrew [8D]
andrewsal
i haven’t read anybody else’s posts so maybe somebody suggested it already….but how about selling this house, buying one for half that price and investing the remainder.
regards
Hi Afghangirl,
Ive thought of that aswell, but try and find me a house at 1/2 price in the same area is impossible.
I wouldn’t mind buying a nice unit to live in for 1/2 the price and invest the rest.
Andy[
]Hi Andy,
New to all this but given what we ( my wife of 1 week, and I) are planning to do, I would have to say “go for it”.
Between us, we each have our own home and an IP property each. Haven’t done all the sums as yet but our goal is to buy sufficient IP’s with in the next five years, then get a bus with trailer for the suzi & 2 motor bikes pack up & become gypsies of the highways allowing the IP’s to look after us until we part from this planet.
Personally I would suggest getting a LOC against your property and retain it as I would guess that its capital growth would be more profitable than paying out fees to Real Estate agents[]Congrates,
Did you just get maried?
Thanks for your advise, we are already borrowing off the equity from our house. We are still thinking about it and yes you are probably right about the house going up in value quicker than Country houses.
I too like the idea of getting into good bus/mobile home setup and just buzzin off all round OZ.
Andy[8D]
Hi Andy,
Sounds like you could realy be on your way to big things.
With the cash your house gives you, I would look at buying a block of units.
There was one for sale in Bathurst for $960,000.00. That consists of 12 2 bedroom units. The average rent was $140.00 pw, that would give you an income of $1,680.00 per week.
You could handle that couln’t you?Matt[
]Hi newbie Matt,
Thanks for the tip off on the block of units.
I already looked into that one and the vendor has taken it off the market.Andy[8D]
Hi Andy,
Well I read through all the post in this topic and it sounds like a great idea. I will have to get my wife to sit down with me and we will see if we can do the same.
The only problem I see though is with capital gains out in the country towns as aposed to the gains I am already achieving in Sydney.
Matt[
]Hi Matt,
It’s a case of what you want to achieve out of your investments. Cash flow or capital growth?
Keeping this in mind, you can’t go down to the shops in buy a loaf of bread with capital growth, with good +ve cash flow you can.Andy[8D]
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