- ACE-18Participant@ace-18Join Date: 2020Post Count: 0
I’m in a very unique position… (I’m sorry for how lengthy this post is going to be)
Tragically, my father passed away roughly about a year ago. He left me a 50% share as a tenant in common on a property located in the Sydney suburb of Alexandria. It’s listed for sale and going under the hammer in August with a reserve set for $1.9m. He purchased this property in 1980 for just over $100,000 with my mother.
My grandmother passed away some four months after my father did, and I inherited my father’s share of her estate shared with her only other child (my uncle).
I inherited $330,000. I used $10,000 of this to renovate the house my husband had bought in rural Victoria 8 years before we met and married, and we listed this house and sold it. We made a $53,000 profit on this deal, and once settlement goes through, we intend to pay off my husband’s loan attached to this property. We will then be completely debt-free.
I used the remaining $315,000 cash to purchase a different, 3 bedroom house also in rural Victoria which we currently live in. There was another, higher offer on the table (subject to finance) but I offered cash and a quick close which the vendor accepted and saved us $15,000.
Lastly, I have another 50% share as a tenant in common with my uncle on my late grandparent’s house in the suburb of Castle Hill, NSW. It’s also listed and going under the hammer in July with a reserve set for $1.2m. This house is currently tenanted and my uncle and I collect $1,098.00 a fortnight in rent (minus fixed water charges, rates and the odd repair here and there). The rent is currently compiling in a trust account in my late grandmothers name, and will be split between my uncle and I once her house sells. I was originally going to buy my uncle out of this share and keep the tenants and the rent, but my husband does not think this is a great investment, so I have agreed to sell (I hope I’ve made the right decision)
My husband and I are both 32 and don’t have any children (yet…) We plan to move to QLD, rent out the house we currently live in (apprised for $330-390 per week) and start invest our money into building a good property portfolio and (hopefully) have some children along the way. He has worked in the mining industry for over 10 years, and currently works for our local council.
We are also looking at setting up a family trust once we had two or more investment properties to reduce our risk.
So what would you do? Where would you get started? How do you know what information available out there is trustworthy?
I spend about 4 hours a week scouring for properties that I think are good investments (mostly in rural areas). I’ve gone to property investing seminars only to leave at the end feeling more confused than when I entered and am the target of those “get rich quick in property” ads you see pop up on Facebook and YouTube. I signed on for a webinar for one of these property focused strategy schemes only to find out it was teaching us how to renovate and turn a single story three bedroom house into three separate (and tiny) apartments which I’m sure isn’t fully legal. I ended up cancelling my subscription on that one.
The successes we’ve had so far in our short experience into property I tribute to owning a copy of ‘From 0 to 260+ properties in 7 years’ which I have read and held onto since I was 23. I always wanted to make something of myself in property, and now I’ve been lucky enough to receive what I have, and it’s a reality, I’m scarred shitless to actually take the leap. I’ve seen too many friends and family blow their entire inheritance on fast cars, boats, Louis Vuitton bags and other items that depreciate and don’t want to go down that same path.
I would love to know what articles, subscriptions and seminars people find helpful/reputable. There are no buyers agents in Cairns, QLD so it’s up to my husband and I to do our own research and find the perfect investments.
I think I’ve found a good investment opportunity on a 2 or 3 bedroom unit in Campbelltown NSW but alas, it is a unit, and my husband has lost confidence in new developments in NSW after all the cladding and structural debacles that have been on the news lately regarding newly erected buildings. The units range from $500,000 for a 2 bedroom with a rental return of $470 per week and $560,000 – $575,0000 for a 3 bedroom with a rental return of $550 per week. I will have to pick up my book again and do some more reading.
Thanks you for reading this, I’m sorry for how long it is and thank anyone for any advice.
-Ari :)JaxonParticipant@jaxonaJoin Date: 2014Post Count: 284
Good Day Ari,
Firstly the fact you are aware & cautious is an absolute virtue & not making a bad step early & knowing what & how to navigate can change your financial future & be wary of anyone selling you a product
I can’t stress enough how many great pieces of information are on this forum & if you do not understand something then why would you do it?
I think you are in a unique position & realistically have a variety of potential options to reach your end goals. (whatever they may be)
I am actually one of the few financial planners that actually spend time reviewing properties for clients, similar to a buyers agent in a sense although I have no financial interest in if a client buys the property or not.
in relation to the Campbelltown property, I would say there is nothing of those numbers that really amaze me on face value & if you enjoy your reading I believe the -“nathan Birch” model of
-Buy Under market value
-Ability to add growth (reno, sub div, reval)
is arguably one of the best overview strategies to add money into your portfolio.
what is the goal for that purchase? how is it part of your plan to financial freedom? or your end goal?
Enjoy your week!