All Topics / General Property / To those of you who have more than one IP

Viewing 20 posts - 1 through 20 (of 28 total)
  • Profile photo of scokarscokar
    Member
    @scokar
    Join Date: 2006
    Post Count: 16

    To those who know,
    Could you tell me how many IP’s you have & what was your financial status when you bought your 1st.
    eagerly awaiting,
    scokar.

    Profile photo of scokarscokar
    Member
    @scokar
    Join Date: 2006
    Post Count: 16

    Doesn’t anyone here have any investment properties?????
    Any advise or helpful info on your first?

    Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    No scokar lots of people here don’t own any properties at all even some of the oldies only have a few if that.

    I think there is a lot of people who want to keep their assets quiet for what ever reason, even if they don’t have any.

    I bought my first property when i was 19 and didn’t know what i was doing. If it wasn’t for my older brother who was a builder i wouldn’t have got the loan ($28,000.00) first big mistake is i sold that one when i was 23 and mades lots of profit.

    Today we control a tidy number thank you, so my answer to you is its never easy to get started but some time you will need to take the plunge if you want a better life than working and paying half your money to the government.

    Rich or Poor the choice is yours, you and you alone control your destiny not your parents or friends or even your boss has any control over you, the decissions YOU make today in life will determine where you will end up. Don’t compare your self with others or how much they have and how much they own, not many start at the top of the ladder.

    So how old are you and what are your dreams??

    D

    Profile photo of peter-reebokpeter-reebok
    Member
    @peter-reebok
    Join Date: 2006
    Post Count: 27

    Still newbies at this.
    When ? about 2 months ago.
    FInancial status
    My wife and I have been married 26 years, six kids, and have always had enough, but not quite enough.
    Inspiration was desire to have something for us to retire on, and I need some major surgery, that savings can’t pay for.
    Owned 50% of our home, so leveraged this, bought 2 units of a 4 unit (existing) refurbishment, and have started from there.
    Is almost CF+, but not quite. ($20/week total). I do the maintenance myself (gardening) for the 4 units and this provides more than that.
    Had new tenants move in day after settlement, paying 30% above previous rents, which were when the property was in dire need of maintenance.
    Sought out a quantity surveyor, and expect to fund the shortfall from tax savings and depreciation for at least the next five years.
    Worked out the numbers ten ways to Sunday, and they actually turned out similar.

    Our strategy is definitely buy and hold. Will add to this on review every 12 months.
    Not rich by any means, but who knows.
    Don’t need rich, just need confortable

    Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Peter you are rich in my eyes – good on you for getting in there and doing it – YOU WILL do well i am sure, all the best to you …

    D

    Profile photo of mathewc73mathewc73
    Participant
    @mathewc73
    Join Date: 2005
    Post Count: 241

    okays, not too personal for me…

    Got 7 at the mo. Cash flow neutral. First one was a 2 Br unit brand new in Qld in 1997 paid $175k.

    Now worth 290k and is a nice investment.

    I was able to afford the 20% deposit and had 10k reserve incase I could not rent it (Im quite conservative). Was probably on 45-55k pa (cant remember).

    Tips for first one:
    1. Dont trust the sales agent with what he says is a bargain and what he says it will rent for. Promised rent was $190pw could only get 165pw.
    2. Do plenty of research. Thats what everyone says!
    3. Watch the market cycle. I purchased at the top!

    Profile photo of reelygood1reelygood1
    Participant
    @reelygood1
    Join Date: 2005
    Post Count: 65

    Hi,
    My wife and I have different strategy, at the moment have 4 investment properties and we buy to develop more equity.
    Once I have subdivided or built, I sell. Most of the time I use banks money against our home, we like to keep our profits as a safety net. I think the first property we bought we had a conbined income of $40,000 and our out of pocket expence was $50 a week
    I know some will say why sell, but we have built up nearly 3/4 million in 6 years with little outlay, have money in the bank .
    We then look for another property, may take 6 months but when you are making this sort of money we can be picky.
    The capital gains tax we offset by buying trees which are a 100% tax deduction, have to wait 10 years though for a return ( hopefully ). Touch wood we have not bought a dud property yet, we always look for a property to subdivide and is undervalued.
    When we first started we bought at the bottom and sold at the top of the property cycle in Brisbane, then bought in Mount Isa which has gone up due to resource boom.
    We tend to go on our gut feeling and if it does not feel right, we won’t buy.
    So if you are willing to spend some time looking and have an income with some equity, the bargains are still to be found.

    Don

    djr

    Profile photo of suzieqsuzieq
    Member
    @suzieq
    Join Date: 2003
    Post Count: 149

    Hi guys,

    Havent been online for a while……been busy sourcing more investment properties!!!

    Investing in property started for us only three years ago apart from our PPOR. I was working part-time and my husband was self employed only 2 years in to the business and no income to speak of.

    Sheer determination got us through. We were told time and time again by banks that although we had equity in our own home we didn’t have substantial income to get anything. We eventually sourced an old fibro house in a small country town in WA for $40,000. A got hold of a good broker who was able to get us a low doc loan using the equity in our house and we scraped over the line.

    Again investment number 2 (had to borrow deposit from father in law but saw an opportunity we couldn’t pass up) another WA country property which we reno’d & sold for a very healthy profit 18 months later.

    Profit went as deposit into property number 3 in an outer suburb of Perth (a run down rental in a not so desirable location at the time)……sold 12 months later and doubled our money.

    Paid off PPOR and have purchased a few blocks of land around WA in partnership with someone else. Still deciding what to do with the land at this stage.

    ALL THIS FROM NO MONEY………..never ever give up, there is always a way….you just have to think outside the square.

    sq[biggrin]

    Profile photo of v8ghiav8ghia
    Member
    @v8ghia
    Join Date: 2005
    Post Count: 871

    Hi Scokar. no worries. Did the usual large family large mortgage no spare cash thing, until relocated a year or two ago after sellign property, and family size reducing. Rather than going into debt up to the eyeballs again (was tempting, and hard to make the call) we are renting, and with the money we had form our house sale (a nice upmarket large house, but in a smaller country area, so we are not talking a huge amount) we are now renting a house ourselves, and used the money to purchase our first ever investment property… 20% down on a moderate home which was neutral/or a whisker positeve, but will be a bit neg this year with some repairs) and then back in january bought our second one in the same town with 20% deposit, CF neutral (best we could do). Just got enough left without emptying the resource now to by a third with a 10% (or 5%) depending on amount and would love to get something we can perhaps buy and sell this time and fund something else, as we hope to hold the other two. AND SUZIEQ I find your words/experieince encouraging too I might add…..thanks for sharing it! Its hard to be balanced (espeially with family) between ‘just go for it’ and over-analising (I meant analysing!) and doing nothing but. All the best with your investing journey.

    Profile photo of Carl.AlexanderCarl.Alexander
    Participant
    @carl.alexander
    Join Date: 2006
    Post Count: 50

    21 y/o own 2 small apartments just outside Perth CBD 290k Loan but with about 140k equity so not a bad start for someone my age with boomsville. Hope to invest in queensland before the end of the year and still paying off my World Cup trip so i am living the life.

    Profile photo of Rexilla99Rexilla99
    Member
    @rexilla99
    Join Date: 2003
    Post Count: 39

    Keep them coming, there are some great stories.

    Profile photo of units4meunits4me
    Member
    @units4me
    Join Date: 2005
    Post Count: 90

    Hi all. I’ve been buying since 1994. Have 9 plus PPOR at the moment. LVR abt 26%.
    Advice to newbies, watch you don’t buy @ top of cycle and don’t be tempted to sell. [biggrin]

    Profile photo of fjficmfjficm
    Member
    @fjficm
    Join Date: 2003
    Post Count: 88

    Currently 10
    LVR 42%
    LVR about 25% by mid next year
    or more properties

    thanks

    Profile photo of petzpetz
    Member
    @petz
    Join Date: 2003
    Post Count: 11

    We started off during “the recession we had to have”. Interest rates got up to 18.5% in the first few years that we bought our own home. ( Built in 1988) We survived. We then decided to build again once the interest rates dropped to 13.5%. We paid $130k(1994) and sold it for $220k 8 yrs later. In between time we have built again, just sold that one pd $160k & sold for $375, bought a townhouse, a villa, 3 house & land packages 2 apartments and a dual key. We currently have 8 rental statements coming in each month and since we haven’t built for a while we are about to do that again. We have found an area where land in a newer estate is not selling but houses are.I think people are daunted by the fact that they see a spec house for $125k and by the time they buy the land, build, and add all of the extras council expect these days the price has hit $450k by the time its finished. They think it is too much trouble and would prefer to pay someone else the extra $150k that these houses command when finished.

    Profile photo of chrisconutschrisconuts
    Participant
    @chrisconuts
    Join Date: 2002
    Post Count: 12

    Great topic, its great to hear other peoples stories. When I was in NZ recently I picked up a book by Phil Jones composed of anecdotal stories from peoples experiences, not sure if it has hit the shelves here yet. I recommend it.

    I am 32 and don’t own any property, I’ve spent the last 10 years at uni and building a career, now I’m paying for it! but luckily I have the income to borrow a decent amount of money. Not having bought any IP’s as yet, I’m finding it interesting going through the process of dealing with lawyers, REA’s, banks etc. I’m finding it hard to stick to my guns and go by the numbers/instinct alone, but I’m determined to make it work!

    Chris

    Profile photo of perthmanperthman
    Member
    @perthman
    Join Date: 2006
    Post Count: 19

    Bought first at age 21, $150,000 10 years ago and neutrally geared.
    Saved deposit.

    Took six and a half years to increase $1 in value (yes – thought about selling it a hundred times).

    in mean time slowly grew a portfolio of shares with savings.

    When Property increased in value (3 years ago), immediately geared against equity and bought cheapest four unit development site I could find within 10km of CBD.

    Used income (fully franked income) from share portfolio grown over six years to then supplement income to help support loan on new property, (negatively geared).

    Result – development site doubled in 18 months, other IP doubled in 10 years, share portfolio doubled in six years.

    Intention now: selling down part of these invetsments to purchase and fully pay off my dream house and then start the process all over again as I am only 31.

    I have only ever earnt an average wage, have not had any help from parents and also took two years off to travel the world in that time.

    Any long term wealth goal should always be balanced with a quality of life and enjoyment whist we are young.

    I hope the message here is not timing the market but time in the market, diversifying your investments and starting young.

    Cheers

    Profile photo of scokarscokar
    Member
    @scokar
    Join Date: 2006
    Post Count: 16

    Thanks to everyone for your stories so far. Is it best to use the equity in your own home or have full mortgage over the IP?

    Profile photo of perthmanperthman
    Member
    @perthman
    Join Date: 2006
    Post Count: 19

    If you use the equity in your own home to purchase an IP your PPOR will need to be held as security. Once the IP increase in value and the LVR gets below 80% then this security can be taken away.

    For most people equity in their home will be the most accessible way unless you have a spare amount of cash sitting around to put a deposit down on the IP.

    Hope this helps

    Profile photo of scokarscokar
    Member
    @scokar
    Join Date: 2006
    Post Count: 16

    I know i sound stupid, what is LVR?

    Profile photo of perthmanperthman
    Member
    @perthman
    Join Date: 2006
    Post Count: 19

    Sorry, basically LVR means Loan to Value ratio. eg if your loan was 80,000 and your property was worth $100,000 then your LVR would be 80%. It is this LVR that banks use to work out how much they are going to lend you.

    Therefore if the property increases in time to say $200,000 and your loan is still at $80,000, then your LVR is now 40%. This means that you can now borrow this equity back to say 80% and use these funds to either invest (best way) or go on a holiday and buy a new car (worst way).

    Hope this explains it

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