Right. Having just come off the Australian / Age/ SMH newspaper sites, I find myself feeling blue..
IN the midst of newspaper stories about housing doom & gloom and plunging house prices
& can't feel my legs it's so bad & shonky dealers & crashes & naughty people doing bad things & sob sob..
Here's a chance to do like many others have done and share some positive stories, keep morale up about why we do what we do:
Disclaimer:
Read the market - do what is appropriate for your situation. Take action, but take wisdom first.
Don't be guided just by feelings but by research & wise advisors.
My story:
1995. Broke. in high school.
1996. Broke in uni with shocker of bomb of car. working several jobs.
1997 In debt -$4k for a car and stony broke at uni. working several jobs.
1998 Got married, Still in Uni - paid off car debt, saved $5K. (wow, what a kick up the pants getting married was!!)
Got 'lucky' by working hard at uni & getting a fun, wellpaying overseas job in 1999.
2000 onwards Invested in managed fund share portfolio . (1999 was just fun! no savings to speak of there..
Saved up cash deposit on first home by working overseas.
July 2001 Came home right smack bang near the start of Property Boom 2001.
Oct 2001 Bought newish small house in Brisbane. $150K put down 27K deposit.
Spent a bit of time & money - repaint, new curtain, aircon, insulation, patio, paint fences & gardening.
June 2003 Bought 1st IP in (bit slow to wake up to what was happening around me!!)
Bought 157K, was rented 170/w.
Read Reno Kings free tips off website and API I could get hands on.
Re-tenanted at $210, then rent shot up to $245 (fenced, painted)
Oct 2003 Bought 2nd IP in - North QLD. $67K
Dumpy Unit. limped along at $135, then $130 with lots of maintenance and long untenanted stretches.
OOPS!! This cost us badly per week.
July 2004 Sold Shares to stop the bleeding (was margin loaned as well) cover weekly losses & have holding costs
Oct 2004 Sold 1st Home $280k and Bought much bigger, rundown house in same street for $298 (1st house too small)
Feb 2005 Sold 2nd IP ("dog") after Renovation - Valued at $85K before Reno, sold for $117K after 10 days.
Mar 2005 Bought Reno Kings book. Stories are so cool. Want to do it all over again.
Aug 2005 Current position.
1 house that we can stay in for a v long time (comfy, big, practical & convenient)
with similar mortgage to when we 1st bought in 2001. (principle and interest)
Setup LOC for investing against this.
Setup 2nd LOC for doing up own home. (non deductible expenses..)
1 neutral geared IP (1st one) with same amount owing as when purchased in 2003 (interest only)
Next Steps From here:
Continue 'fixing up' our big, comfy, house to add value & make comfortable: ongoing
Set up Trust (HDT with Corporate Trustee) Done
Invest in Share portfolio (small amount) Soon.
and use this portfolio to park savings in, along with current ING account
Research for reno-able, rentable unit/small house within driving distance: ongoing
Buy within trust using current LOC on house to 'loan' to trust, : soon
allowing me to negative gear effectivley
Renovate as soon as 1st tenancy expires if tenanted,
or straight away if untenanted.
Re-finance to cover renovation & loan costs.
Re-tenant immediately.
Take 'profit' (difference between refinance and original) out and do it again.
Renovation Tips learned & used:
1) repaint ceilings, walls - use spraygun if you are keen, or just roller if you aren't as comfortable.
Use semigloss acrylic (satin finish)
Repaint doors in 1/2 strength wallpaint (gloss enamel)
2) have electrician replace all light switches and GPO's (buy them yourself, but get sparko to fit them)
3) replace light fittings with nicer ones that fit to the bayonet (DIY)
High ceilings? Use chinamans hat - white on inside, stainless on out, hanging on string - looks funky & cool.
4) repaint / regrout showers. New shower rose (head). New Taps.
5) resurface bath / shower basin if old with White Knight Tub & Tile
6) new bathroom vanity
7) New Toilet cistern & seat
8) Paint doors & new shiny brass number for front door.
9) security doors from bunnings (only $90 or so)
10) plastic wood blinds from Supacheap Amart
11) Aircon in QLD - fit right into window - can be installed cheap by glaziers.
(get sparky to run new socket if needed, we put mine in ceiling)
12) Repaint or re-cupboard kitchen cupboards
13) New tap handles
14) New carpet & Lino
15) New door handles throughout
16) Clean everything that wasn't painted or carpeted over!
New doors are cheap if yours have holes, else patch them.
.
Reasons for doing what I do:
To be in a position always to give & provide for others & our needs as we see fit.
To provide a heritage & inheritance for my family:
a great life, education on wealth, generosity
To have choice later over whether I stay working
or move on - to not be trapped.
To keep from getting bored!
What's your story?
Any constructive pointers?
IN the midst of newspaper stories about housing doom & gloom and plunging house prices
& can't feel my legs it's so bad & shonky dealers & crashes & naughty people doing bad things & sob sob..
Here's a chance to do like many others have done and share some positive stories, keep morale up about why we do what we do:
Disclaimer:
Read the market - do what is appropriate for your situation. Take action, but take wisdom first.
Don't be guided just by feelings but by research & wise advisors.
My story:
1995. Broke. in high school.
1996. Broke in uni with shocker of bomb of car. working several jobs.
1997 In debt -$4k for a car and stony broke at uni. working several jobs.
1998 Got married, Still in Uni - paid off car debt, saved $5K. (wow, what a kick up the pants getting married was!!)
Got 'lucky' by working hard at uni & getting a fun, wellpaying overseas job in 1999.
2000 onwards Invested in managed fund share portfolio . (1999 was just fun! no savings to speak of there..
Saved up cash deposit on first home by working overseas.
July 2001 Came home right smack bang near the start of Property Boom 2001.
Oct 2001 Bought newish small house in Brisbane. $150K put down 27K deposit.
Spent a bit of time & money - repaint, new curtain, aircon, insulation, patio, paint fences & gardening.
June 2003 Bought 1st IP in (bit slow to wake up to what was happening around me!!)
Bought 157K, was rented 170/w.
Read Reno Kings free tips off website and API I could get hands on.
Re-tenanted at $210, then rent shot up to $245 (fenced, painted)
Oct 2003 Bought 2nd IP in - North QLD. $67K
Dumpy Unit. limped along at $135, then $130 with lots of maintenance and long untenanted stretches.
OOPS!! This cost us badly per week.
July 2004 Sold Shares to stop the bleeding (was margin loaned as well) cover weekly losses & have holding costs
Oct 2004 Sold 1st Home $280k and Bought much bigger, rundown house in same street for $298 (1st house too small)
Feb 2005 Sold 2nd IP ("dog") after Renovation - Valued at $85K before Reno, sold for $117K after 10 days.
Mar 2005 Bought Reno Kings book. Stories are so cool. Want to do it all over again.
Aug 2005 Current position.
1 house that we can stay in for a v long time (comfy, big, practical & convenient)
with similar mortgage to when we 1st bought in 2001. (principle and interest)
Setup LOC for investing against this.
Setup 2nd LOC for doing up own home. (non deductible expenses..)
1 neutral geared IP (1st one) with same amount owing as when purchased in 2003 (interest only)
Next Steps From here:
Continue 'fixing up' our big, comfy, house to add value & make comfortable: ongoing
Set up Trust (HDT with Corporate Trustee) Done
Invest in Share portfolio (small amount) Soon.
and use this portfolio to park savings in, along with current ING account
Research for reno-able, rentable unit/small house within driving distance: ongoing
Buy within trust using current LOC on house to 'loan' to trust, : soon
allowing me to negative gear effectivley
Renovate as soon as 1st tenancy expires if tenanted,
or straight away if untenanted.
Re-finance to cover renovation & loan costs.
Re-tenant immediately.
Take 'profit' (difference between refinance and original) out and do it again.
Renovation Tips learned & used:
1) repaint ceilings, walls - use spraygun if you are keen, or just roller if you aren't as comfortable.
Use semigloss acrylic (satin finish)
Repaint doors in 1/2 strength wallpaint (gloss enamel)
2) have electrician replace all light switches and GPO's (buy them yourself, but get sparko to fit them)
3) replace light fittings with nicer ones that fit to the bayonet (DIY)
High ceilings? Use chinamans hat - white on inside, stainless on out, hanging on string - looks funky & cool.
4) repaint / regrout showers. New shower rose (head). New Taps.
5) resurface bath / shower basin if old with White Knight Tub & Tile
6) new bathroom vanity
7) New Toilet cistern & seat
8) Paint doors & new shiny brass number for front door.
9) security doors from bunnings (only $90 or so)
10) plastic wood blinds from Supacheap Amart
11) Aircon in QLD - fit right into window - can be installed cheap by glaziers.
(get sparky to run new socket if needed, we put mine in ceiling)
12) Repaint or re-cupboard kitchen cupboards
13) New tap handles
14) New carpet & Lino
15) New door handles throughout
16) Clean everything that wasn't painted or carpeted over!
New doors are cheap if yours have holes, else patch them.
.
Reasons for doing what I do:
To be in a position always to give & provide for others & our needs as we see fit.
To provide a heritage & inheritance for my family:
a great life, education on wealth, generosity
To have choice later over whether I stay working
or move on - to not be trapped.
To keep from getting bored!
What's your story?
Any constructive pointers?
