October 1995 I was 24years old and just bought my first investment property for $120,000 and it was returning just under 13% with a deposit of 20% and a few thousand in closeing fees were my only out of pocket expences in 10 years . It put a little money back into my pocket witch I put back towards the loan or toward up dateing . I sold the property today for $465,000.
I owe just under $48,000 on the loan.
So the figures look like this.
Purchase price and costs $125,000
Deposit and expences $ 29,000
Sold for $465,000
Selling expences $ 15,000
Existing loan amount $ 48,000Money back to me $402,000
Not bad for $ 29,000 out lay
Roughly $720 dollars a week every week for 10 years , that is like another whole wage coming in every week for 10 years.
Sorry I know Im going on but it amazes me how easy I done it and I just wanted to share it with you.Cheers Rick
Monopoly, my favourite game
Rick, thats just fantastic. Congrats on the sale. Hope your next purchase is as good if not better than your last one.
well done
Good job Rick.
The figures look a damn sight better than the place we bought in ’95. Why did you sell it ??
I hope that you and Mr Carmody enjoy your windfall. What do you intend to do with the bit left over that Mikey lets you keep ?? (Don’t take that the wrong way, I always analyse things from the standpoint of what I am entitled to…not what I and the Govt are entitled to.)
Well done anyway.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Rich,
Well Done. You have well and truely satisfied the CGT discount period so half of your gain is tax free so that is the good news. The slightly worse news is that you will have to pay tax on the second half at your marginal rate.
However, if you are smart it will be quite a while before you have to actually pay that money to the tax man so sit it aside and invest it wisely.
Good Luck
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Dazzling
I sold it because at that price Im only getting around a 5% return. I think I can put the money somewere else and make beter returns.
Cheers Rick
Monopoly, my favourite game
Would like to hear any comments people that are reading have
Cheers Rick
Monopoly, my favourite game
Well done mate,
Its just a shame that we cant expect to see the same returns over the next 10 years IMHO. I seriously doubt there is much room left. Someone please correct me if Im wrong, but unless there is some major inflation which will = increase rates we are in for a very flat period…
Blogs, I agree 100% , but i’m now looking at the USA market and there are deals around in good areas with +cashflow and i would say some growth as well over time.
Thanks for your commentsMonopoly, my favourite game
Congrats RICK,
I would love to know if you end up finding another gem like this.
Looks like you have been acheiving 137% interst on your $29k investment before tax and costs.
Hard to beat!
This is better than anything I have got.
A quick calculation shows the best positive gearing prop I have got is returning about 34% on my original investment.
Well done and good luck!Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Just bought a block of land. Hoping I’ll get same returns.
Good on ya.
RealEstateDevelopmentCoach
http://qwertyu.colmkille.hop.clickbank.netJust spoke to my accountant looks like I will be in for a large tax bill , oh well if your making money you have to pay tax.
Monopoly, my favourite game
Thanks for all your comments
Monopoly, my favourite game
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