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Viewing 15 posts - 21 through 35 (of 35 total)
  • Profile photo of flatoutflatout
    Member
    @flatout
    Join Date: 2005
    Post Count: 64

    We’re still in the infancy of our investing but so far so good. Recent valuation shows 40% CG for IP no. 1 since purchased last Sept. so we are very happy indeed and have also recently secured another IP. Just about at our servicablity limit now though so will have to sit tight for awhile. Looks like I’m gunna have to return to full-time work soon as current P/T job looks like coming to an end and realistically not much scope to replace it with another P/T job in my field without taking a significant pay cut in a lower level job. Pity as P/T suits me nicely but on the bright side F/T work will bring in an extra $[whistle]20K pa which will increase our servicibility and allow us to move forward. Goal is to sell up IP’s in 1-2 years and pay down our PPOR mortgage then dive right back into the property market using the extra cashflow to service quite a few more tax deductable IP’s. So we’re happily on track but just need to be patient which is the hard part. [whistle]

    Flatout.

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206

    Me. not much is going on. Started a new job. I am going to increase the rents on my properties. I will also see a broker and see how much more i can borrow.

    I think i am too conservative. Does not matter, i dont want to loose everything in 5-10 yrs time by over committing.

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    Great to see you here Yack..though I think you belong on the other forum..

    I’ve been lokking at the future and thinking about the LOE retirement scenarios though IMHO there’s too many variables in the future to have a fixed date for retirement, I’ll only probably ever semi-retire anyhow and will most likely be one of those people that suddenly realise how far we’ve got.

    10 years from now and assuming property doubles in value and without doing anything my portfolio should be worth $2,001,000.00 or so with the current Loans of $640k giving equity of $1,361,00.00 and a LVR of 32% (a nice thought) and would most likely be creating some reasonable cash flow. If I added to this, these figures which are variable anyhow could be greatly affected…

    Nice to think I made $90k in the last five months without effort..however, we still live on a budget tighter than most friends..things are tight now but the future looks good

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi all
    just thought I’d find out did your year go well.
    mine did
    and did meet my target which for me is great.
    I have set a higher target next year and this one is about 2.5 time this one so will see if I get up that hill and a minor mountain it is.
    I will have a new website very soon name already organised and is part of the mountain.
    I set goals that are achievable but not easy to meet and require the assistance of others for me to get there.
    not an easy year for developers and investors in sydney but depending how you swim in can be very profitable.
    we are heading for a very brave new world as they say and the asia rim and the islands around us are very good areas to look at.
    make sure you have your core business in place and then have alook.
    got two soaps out of the way this year and have 2 lined up for next year already and one may still make for this year if I can get it ovcer the line.
    hope you all do well and that you have met your goals

    here to help
    contact me [email protected]

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Hi all
    thanks for a great post Gross.

    Everything is going very well, probably better than expected.

    Finally resigned from my part time job in April 2006 to concentrate on enjoying life, having fun, have also taken up some personal development courses which has been great, also gives me lots of spare time to research deals etc.

    Completed 2 house and land packages both now rented out. Another L&H due for completion in February 2007.

    Just signed another L&H with Ventura Homes, purchased the block in March 2006 and it has pretty much doubled, thanks to WA market.

    I have started using different strategies in terms of servicing loans. Have also set up LOC using equity from my IPs for ongoing deals and also changed Mortgage Broker which has been a good move.

    My partner is currently expanding business and turnover in last 12 months has now doubled, only problem is finding skilled workers, currently sponsoring someone from UK.

    Have registered interest in industrial land with a view of building factory unit/s business will lease one, this will happen in 2007.

    I think one of my challenges for 2007 is to start setting up trust structures, as I have been avoiding this one, but looks like I just gotta do it now.

    Good to read what others doing and good luck.

    Marisa

    (Hard work never killed anyone, buy hey why take a chance)

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488

    Hi All,
    just read Marissa’s post and thought of this question;
    at what point in your investment life do you start to buy property in the name of a trust, or discretionary trust, or entity other than your own name/s?
    We have 4 I.P’s all in our names, each time we purchase I ask the accountant how should we purchase it, he says at this stage it is better to be in our names for the tax benefits.
    My concern is the asset protection aspect – I would like to be distanced from the assets from a litigation/bankruptcy aspect etc, but still retain all the benefits. I want my cake and eat it!
    I have a company and a family trust; both inactive at this point in time, and I understand that tranferring the properties into our company name and/or trust fund would incur stamp duty, so I’m not interested in that, but what about future purchases?
    Any advice would be appreciated.

    Cheers,
    Marc.
    [email protected]

    Profile photo of kum yin laukum yin lau
    Member
    @kum-yin-lau
    Join Date: 2006
    Post Count: 342

    Hi, thanks all for sharing. Great topic. Good to review progress.

    My year’s been SLOW. Finally, demolition’s completed. 2 weeks later, I see 2 piles of dirt on the site.

    I was very bothered at first but then I decided to let it ride. The delay costs me plenty but median prices go up very fast because of nearby developments.

    Interest rate hikes means I need to be more conservative. Doesn’t help that family members are all warning me not to be too gungho.

    My sister’s into shares & needless to say, has been on a high. Greens, costing 55 – 60 cents, is now 81 cents. That’s 40 – 45% in 18 months.

    She’s given me a SEVERE WARNING that property is DANGEROUS.

    I have taken her warning seriously and bought another investment property!!

    Good luck to all,
    Kum Yin

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi L.A Aussie
    not on this post but my view is that you should start with a structure not start building half way thru.
    if your accountant is telling you that you should by in your own name for tax reasons I would have a chat with another accountant.
    ppor are ok in your name but ip’s arn’t and bepending on the structure you build buying i your own name is simple not the best option
    simple yes but you can do alot better with a structure.
    and I’m not an accountant.
    you need to get advice and it not just stamp duty that ou need to look at when in your own name its also capital gains.
    if its in your own name you have no where to move to move that capital gain or loss.
    remember just because someone has a certificate doesn’t mean they know what they are doing
    so get a second opinion it will be well worth it.
    my .002

    here to help
    contact me [email protected]

    Profile photo of dannadsdannads
    Member
    @dannads
    Join Date: 2003
    Post Count: 37

    Hi everyone,,

    Have been a bit quiet on the posting front lately so thought i’d get in on this topic as I have had a very interesting year compared to most other years.

    My wife and I lived in Brisbane in our PPOR and had 2 IP’s in North QLD. Sold the PPOR in December last year and realised a good capital gain having brought the 2 bedroom inner city unit just before the boom started. I then resigned from my 11 year stint at the IT company I was working for and moved 1000km north for a SEA CHANGE. Lease ended on one of our IP’s so moved in to do some slight reno’s and sell to realise the capital growth on the property which we also managed to buy before the mining boom up north. Other lease ended and moved into the other IP and am currently going hard renovating the property.

    Made enough from the sale of the 2 places to pay off our new PPOR and have quite alot of cash left over which I have been using to buy/sell shares and relax a little from the whole loan thing we have relieved ourselves of. We are also constantly looking at property around the traps for anything that suits our strategy.

    I have got a job as a sales rep now and am really enjoying the change of pace and lifestyle.

    Crazy you may think to decrease our growth assets to get some cash but we are alot more relaxed now, do not suffer the same stress we did before, and the financial changes enabled me to change careers and try something else that I have always wanted to do without the worry of “what if I don’t like it, I have bills to pay” mentality.

    That’s my year anyhow!

    Cheers,
    dannads

    Cheers
    Dannads

    Profile photo of Tracy LeeTracy Lee
    Member
    @tracy-lee
    Join Date: 2006
    Post Count: 19

    Hi all,
    Great to hear your stories, as I’am new to this. My husband and I sold our boat at the beginning of the year so we could cash in on the last of the property boom. We paid someone $7.000 to find us land and oversee the building of a house on it. As it will be a tax deduction we thought it was a good idea, we also had a very busy year ahead with family commitments so thought this would take a lot of the pressure off. So far so good, it is due to be finnished in Feb. and has gone up in value quite a lot thanks to the Perth market. We will then have to decide wether to rent it or sell. We have our own home on the market at the moment, we are hoping to get a block of land on the river, we are in a ballot, we have a 50/50 chance. We will then have to buy a very cheap house to live in much to the 15yr old daughters disgust. (One toilet I don’t think so .) and either rent it if we build on the land or sell it.

    Do you think the W.A maket still has some go in it or are we done. What I haven’t been able to do so far is build a portfilio, I keep selling every thing, one because my husband is very causious and want let me ever have more than one. and 2 because I’m impaitant and like to have the money to spend else where.
    Hope next year is better for you Shaun
    Good luck to you all.

    Profile photo of wayne10539wayne10539
    Member
    @wayne10539
    Join Date: 2003
    Post Count: 73

    Hi Guys,

    Iv’e had a mixed year, we bought an investment property on the WA coast 3 years ago, and had originally planned to move into Dec 06. My job was beginning to suck, so my wife and i threw our jobs in at the mines and moved into our home on the coast a year earlier than expected.

    We arrived with no jobs, and were redrawing on our home loan to service our debt of our investment properties and for every day living expenses. I finally was offered a job selling real estate with the local agent, as i had bought a couple of investment properties through them., so thinks began to look good, at least i had a job.

    I only work 2 days a week, and was finding it hard to crack in to the local market with contacts. We wanted to still buy investment properties, but the banks were not comfortable to lend money as i am on a commission base salary and had only commenced employment.

    That all changed in July 06, when one morning i recieved a registered letter and was told that my wife and i had won a RSL Art Union canal home on the Gold Coast. This has boosted our investment portfolio greatly, and has taken the pressure of the need to work harder.

    The down side is that even with plenty of equity, still amazaed at how little banks will lend against the equity we have. I imagine that after 12 to 18 months when i can show a stable comission salary, things may change and i will be able to continue what i enjoy most, investing in property.

    Regards

    Wayne

    Profile photo of foundationfoundation
    Member
    @foundation
    Join Date: 2005
    Post Count: 1,153
    Originally posted by Tracy Lee:

    Do you think the W.A maket still has some go in it or are we done.

    I assume that’s a question. Over to The West Australian:

    Real estate whirlwind runs out of puff
    21st November 2006, 8:00 WST

    The property boom that has pushed the average price of a Perth house to almost $500,000 has ended, according to some of WA’s leading industry figures.

    The Master Builders Association, the Real Estate Institute of WA and leading developer Nigel Satterley agree that the boom has run its course as activity in the new and established home markets returns to more subdued levels.

    However, the strong state of the WA economy, low unemployment and relatively low interest rates means it is unlikely the market will crash.

    Mr Satterley said high prices had significantly reduced the number of first home buyers and interstate investors.

    The first home buyer sector — the bread and butter of new home sales — had dropped almost 20 per cent since January.

    His comments coincided with the release of an MBA snapshot for the September quarter which showed interest rate increases had dampened builders’ future workload expectations.

    MBA director Michael McLean said building starts for new homes were on a downward trend but the industry still had a backlog of work for at least the next year.

    REIWA president Rob Druitt said most house sales now took between four and six weeks in contrast to the whirlwind sales at the height of the boom.

    Google “Real estate whirlwind runs out of puff” then click cache below the link to retrieve the full text from Google cache. The original vanished shortly after it appeared……

    F. [cowboy2]

    Profile photo of Millionaire in trainingMillionaire in training
    Participant
    @millionaire-in-training
    Join Date: 2004
    Post Count: 154

    Well I joined the RESULTS program (Premium) in Oct last year, have since moved to Adel, given up my job and bought a place in Adel, demolished a house, and am planning to build two new ones for a profit of around $65k.
    Currently searching for a reno to do with a money partner.
    So aside from a couple of personal issues I have had a GREAT year. Met heap of wonderful people, learned lots and got right out of my comfort zone
    Warm Regards
    Sue

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi all
    just a quick note.
    dannads its not uncommon to cash up and get ready for a movement I am doing the same at the moment myself but for a very different reason as I want to change a unlisted trust into a listed trust and that takes cash.
    the wa market still has more time to go for me and will still increase there are rumblings in china and if there commodities come on line then you may and will see a correction if thats right I would lend on the equities you have and loc the loans.
    I hope my view of the sydney market is right and that it will start to move mid 2007 and flow from there
    I will let you know when it happens but we are looking at a rental auction for 5 of my units and bidders will be bidding to rent the units.
    just organising at the moment wouldn’t today tonight love thats as a lead story.
    not bid to buy but bid to live.
    when you are in the highest growth areas like wa you need to look at leveraging off that growth so buy 1 ip sell and buy another is not leveraging yes you make money which is good but the real money come from leveraging and is the old rock and fulcrum you learnt in maths to lift the boulder you need to arrange the rock at the front and use alot less effort using thre fulcrum the same with leverageing you are using one ip at the front and less effort to generate income and by increasing the number of ips you are increasing the size of the rock so less effort each time.
    by buy and sell you are just changing the rock and its not growing in size so the work load is the same.
    but this is not the post for that.
    .

    here to help
    contact me [email protected]

    Profile photo of Tracy LeeTracy Lee
    Member
    @tracy-lee
    Join Date: 2006
    Post Count: 19

    Thanks for the input. I work for a bank and apparently there is no sign of slowing down on the lending yet in WA, its still full steam ahead. According to the HFM.

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