澳洲Australia property Well Hello again! | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi there. Some of you might remember me. :) I've been here, was posting a lot & asking billions of questions early on. Now, Lurking in occasionally. Thought I'd jump out from the spare room and say hi again!

My story in a nutshell? I started buying property with my PPOR in 2001 (now sold), followed by first IP in 2003, followed by another IP in 2004 (sold) followed by 2nd PPOR in 2006 (now sold) followed by another IP in 2006, followed by current PPOR in 2007, followed by a block of land in a JV with our SMSF with a bunch of other super funds, accountant & developer. (Land about to be divided, should be a good return on that one).

Followed by.... .... nothing for a while now.

Feel a bit constrained, but happy there was an initial flurry of activity whilst the boys were really young (less than 2ys). Now they're in school and it's slowed down a bit.

I am looking at buying the house next door, to complement our 795 sqm block with another 795sqm block. That should give us enough land to knockdown & rebuild perhaps some apartments. (one red hotel, like Kristine puts it)..

Only problem is - cashflow is Bluddy tight! has been for ages. Cause the thing is - still single income, 3 kids now, and they're all Boys! (chomp chomp chomp chomp, break stuff, chomp, shoes wear out, chomp chomp chomp, interested in new and expensive sport, etc etc etc.) I'm starting to see the tight cashflow as a pattern.

I love the lads dearly, don't get me wrong - there's no complaint there.

Right now we're sitting on about 1.2M worth of property - debt around the 990k mark. Floating at about 300K worth of equity and waiting for that rising tide.

Next purchase should take us to the 1.5M worth, debt around 1.2 so still 300K equity and hope like hell for some more growth!

Anyone else experienced rents go DOWN though? poo.

So I just thought I'd pop back in and say hi! I've been reading and thinking and reading and plotting and musing and staying busy with life.

Just now, JUST now, after 8.5 years of single income life, my beautiful wife is looking around at part time work. Boys are in school and the early years we're proud to say are solid. That may help ease the cashflow a bit.

Nevertheless - I'm grateful for where we are at the moment, and convinced it will get better from here.

So:

This is a 'gratefulness' post in case you hadn't gathered so far. Probably a little unstructured - but hey.

I want to say thanks so far to all the posters, encouragers, stories, and inspiring posts that you somersofters have given over all the years. And yes, I'm still here. :)

Cheers
alwayscurious.  

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hey there, great to hear you are enjoying life!!! Keep up the great attitude =)

Just out of pure curiosity ... if you just kept your first PPOR purchased in 2001 (and bought/sold nothing else), how much equity would you have now (taking into account your initial deposit and any capital growth from 2001 to date)?  

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jigglypuff said: ↑
hey there, great to hear you are enjoying life!!! Keep up the great attitude =)

Just out of pure curiosity ... if you just kept your first PPOR purchased in 2001 (and bought/sold nothing else), how much equity would you have now (taking into account your initial deposit and any capital growth from 2001 to date)?Click to expand...
Good question!

finger in the air. probably around the 200K mark.

Purchased at 150,000 (deposit 30k). Price today around $350,000
So if it was all I had, and I sold it now, I'd be about 200K mark. Remember that I put in 30K?
well if I took that away, I would have 170K of growth money.

Hope it makes sense.  

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cool!

welcome back by the way!  

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No probs.

Hey Jigglypuff - another point to add on to my reply.

Let's do a comparison and suppose for a minute I get to hang on to exactly what I've got now.

Fast forward another 7-10 yrs. Let's suppose for a minute that all the property historians are right, and property doubles 7-10 years.

then, i should have 2.4 M worth of property with ~ 1.2M worth of debt (lets say a bit increases due to capitalising or something)
Profit 1.2M

VS:

Scenario 2 (own house)
House now worth 700K approx (double 350).
Loan 120k
Profit 580k.

See the difference? Scenario 1 put syou roughly 600K ahead of scenario 2.


Do it again, another 7-10
Scenario 1: 4.8M with ~ 1.5M worth of debt

profit 3.3M

Scenario 2: 1.4M with 120k loan
profit 1.3M roughly.

Scenario 1 is now 2M ahead.

That's why I'm hanging on to a few!

Rough numbers I know - but it's sorta kinda right. And I wonder if we'll be right in 10 years time?  

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Welcome back.

The Y-man  

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hey mate, you dont need to convince me ... i am well acquinted with the idea of compound growth on different sized portfoilios :p - the more the merrier i say. as i said, i asked purely out of curiosity, not coz I was doubting the value in what you did or tried to do (okay you probably didnt think that anyway - digging a hole for myself so going to stop here!). cheers  

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alwayscurious said: ↑
That's why I'm hanging on to a few!Click to expand...
Hi Always..great to see you are back and hanging in there.

Your real wealth is generated from the CG thats why Im also of the philiosophy to never never ever ever sell.

Just think of what your holdings would be today if by some how you managed to hold onto all the properties you off loaded since starting out down the property trail.

Anyway great to see you back.  

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I read in a post the other day how rents are "sky rocketing"! God, theres some delusion on this forum by the bulls.

alwayscurious said: ↑
Anyone else experienced rents go DOWN though? poo.Click to expand...
 

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No skyrockets in my area but rents are stable.

I am curious to know what your income is and how much of it is rent - and how -vely geared you are? The rises in IR's must be making you squirm a bit - especially if your rents are falling. How would you go with another 1% increase as they are predicting? DO you have any buffer on hand? Maybe you have a good income if you are considering another purchase?

Not being a wet blanket here - just wondering if you've thought this all out?:)  

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evand said: ↑
I read in a post the other day how rents are "sky rocketing"! God, theres some delusion on this forum by the bulls.Click to expand...
You still reacting to those extremists, Evan? Thought you would have learnt how to ignore them by now. :D  

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can only comment on perth but rents in some areas have certainly picked up. a property of mine that took 3 weeks to lease in july for $310 just got leased for $330 (with an increase to $340 after 6 months) at the first open and there were 2 applications. the place was exactly the same, nothing had been done to it.

i know demand for fully furnished executive rentals is meant to have gone up significantly as well  

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I'm not sure they are extremists. They actually believe this stuff. More like deluded optimists.

Rockstar said: ↑
You still reacting to those extremists, Evan? Thought you would have learnt how to ignore them by now. :DClick to expand...
 

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