An update of Investment Goals for 2010
- Thread starter jingo
- Start date
So far:
Subdivided block
Started process of getting new house built
Next half of 2010:
Save deposit for new house OR sell old house to bankroll new one OR get equity loan.
Finish renovating the bathroom and painting the gutters here when the weather actually gets above 10 degrees again
Stupid baby bonus in instalments over 6 months now means we have to wait 6 months to get our house deposit together if we take that option. Builder isn't going to like that. But hey, most of that 6 months is going to disappear in council approval time anyway.
First half of 2011:
Build new house
Go on minor furniture-upgrading spending spree
Rent out old house, furnished
Profit
Subdivided block
Started process of getting new house built
Next half of 2010:
Save deposit for new house OR sell old house to bankroll new one OR get equity loan.
Finish renovating the bathroom and painting the gutters here when the weather actually gets above 10 degrees again
Stupid baby bonus in instalments over 6 months now means we have to wait 6 months to get our house deposit together if we take that option. Builder isn't going to like that. But hey, most of that 6 months is going to disappear in council approval time anyway.
First half of 2011:
Build new house
Go on minor furniture-upgrading spending spree
Rent out old house, furnished
Profit
Yep - my plan atm sees a net debt reduction strategy from the end of 2011. Basically I think I will have enough debt by then. Any future property purchases will be made from cash/existing facility limits.
Thats the plan anyway.
Why aren't they
If thats your belief why did you go through the process to get one?
Good question, Rixter.
Pre-approvals are not a formal/official approval or loan offer. Income verifications etc will need to be re-submitted once the property is found. This becomes particularly relevant if there is a change in income status between the pre-approval stage and the purchase date of the property.
The reason for the pre-approval was to be given a guide as to how much the bank would most likely loan to us based on our current borrowings and financial position.
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I would have thought ones financial position in relation to establishing a purchasing budget was a major box to be addressed in building a property portfolio.
IMHO thats the reason for gaining pre-approval. How that is not worth the paper its written on is beyond me
OK the year is going too fast, but here gos:
Milestones done in 2010:-
1. Just about moved all loans away from ANZ (You Beauty) (yes....it has seriously taken months for this) and it is a BIG milestone. (Due to consitent errors and problems)
2. Own PPOR outright
2. Partner just settled on pharmacy purchase (on Monday) - joint owners (cheap drugs) Celebrate this weekend.
3. Completed reno on IP #8
Things still to do this year
1. Redo will
2. Read and learn more
3. Look into purchasing development plots
4. Investigate development on existin IP (MUD)
5. Look into commercial IP (and read a hell of alot about it)
6. Review my share and managed fund portfolio (Have really forgotten about this for the last 7 years or so)
7. Develop Android / Iphone property evaluation App (With some assistance)
Wish list:
1. outgun Dazz with top end commercial wheeling and dealing (maybe I should change wish to goal to achieve in next few years)
2. To gain as much knowledge about property investing as some of the more experienced guys on this forum.
3. Obviously there are more fun things on a wish list, but I'm sure you know the usual Fast cars, luxury holidays, first class airfares, etc. etc.
F
Milestones done in 2010:-
1. Just about moved all loans away from ANZ (You Beauty) (yes....it has seriously taken months for this) and it is a BIG milestone. (Due to consitent errors and problems)
2. Own PPOR outright
2. Partner just settled on pharmacy purchase (on Monday) - joint owners (cheap drugs
) Celebrate this weekend.3. Completed reno on IP #8
Things still to do this year
1. Redo will
2. Read and learn more
3. Look into purchasing development plots
4. Investigate development on existin IP (MUD)
5. Look into commercial IP (and read a hell of alot about it)
6. Review my share and managed fund portfolio (Have really forgotten about this for the last 7 years or so)
7. Develop Android / Iphone property evaluation App (With some assistance)
Wish list:
1. outgun Dazz with top end commercial wheeling and dealing (maybe I should change wish to goal to achieve in next few years)
2. To gain as much knowledge about property investing as some of the more experienced guys on this forum.
3. Obviously there are more fun things on a wish list, but I'm sure you know the usual Fast cars, luxury holidays, first class airfares, etc. etc.
F
Yes, I agree.
Agree again.
How that is not worth the paper its written on is beyond me
Gaining a pre-approval is certainly an aid, (as you expressed in the points above). But at the end of the day, in our situation, the pre-approval is not a firm guarantee that finance will ultimately be granted. Therefore we will tread with caution. (ie. Only put offers with subject to finance clauses in place - no auctions). Whilst I would be surprised if our finance was declined, I would rather have thought through what to do in this event instead of rushing out to buy expecting the finance to be approved.
I hope this helps to clear up some of the confusion?
Regards Jason.
Yes I agree. Even though I gain pre-approval I still include the clause subject to finance when making offers. As stated pre-approval to me is about establishing my purchasing budget rather than having finance ready to go.
This makes sense. As you correctly expressed, a pre-approval is useful in establish a purchasing budget which is vital for a property investor building a portfolio! I take back the 'not worth the piece of paper it is written on' comment. Instead I should have said that in our situation, whilst finance is most likely to be approved, it is not guaranteed.
Thanks Rixter for thrashing this out. I find that I am often guilty of writing flippant comments based on my own particular financial/investment experience and situation which can be confusing for others to follow/understand.
A little update - picked up the title from bank A today and took it to bank B. Funds from the new LOC should be in our account next week!!
Regards Jason.
I would like to have sourced IP4 - which will be a buy, renovate and sell project - with a 4 or 5 month turn around.
I would like to have the renovation completed by the end of Calendar Year 2010 and sold early in 2011.
I will use the equity that is created to lower my LVR and look to do another reno in 2011.
It's actually a great process writing down goals - it's like a swift kick up the date (mine that is) to get on and work towards the goal.
I am enjoying reading everyone's goals.
I would like to have the renovation completed by the end of Calendar Year 2010 and sold early in 2011.
I will use the equity that is created to lower my LVR and look to do another reno in 2011.
It's actually a great process writing down goals - it's like a swift kick up the date (mine that is) to get on and work towards the goal.
I am enjoying reading everyone's goals.
I tend to divide my financial life into financial years rather than calendar years.
Given that we've just started a new FY, perhaps it's a good time to set some goals for the year.
At this stage, I have a few financial goals:
1) Pay down $50k off my PPOR loan (leaving only about $50k to go)
2) Renovate the last unit in the block of 3 I bought last December
3) Follow up and seriously investigate a good employment opportunity that seems to be developing ($50k + payrise)
4) Diversify my shares holdings a bit, and continue to buy in using both my own and the bank's money
Personally, I'm going to:
1) Take the family on holiday to London and the US in September (already booked, and paid for in cash)
2) Settle my son into 'big school' after Christmas
3) Fix that messy corner of the back garden
4) Start running regularly again
In terms of IPs, I probably have enough now to achieve my longer term goals, but if I see one that looks like a good buy, I might get it anyway.
Good times!
Given that we've just started a new FY, perhaps it's a good time to set some goals for the year.
At this stage, I have a few financial goals:
1) Pay down $50k off my PPOR loan (leaving only about $50k to go)
2) Renovate the last unit in the block of 3 I bought last December
3) Follow up and seriously investigate a good employment opportunity that seems to be developing ($50k + payrise)
4) Diversify my shares holdings a bit, and continue to buy in using both my own and the bank's money
Personally, I'm going to:
1) Take the family on holiday to London and the US in September (already booked, and paid for in cash)
2) Settle my son into 'big school' after Christmas
3) Fix that messy corner of the back garden
4) Start running regularly again
In terms of IPs, I probably have enough now to achieve my longer term goals, but if I see one that looks like a good buy, I might get it anyway.
Good times!
Not really doing much property wise, except maintaining what we already have, but here's mine anyway:
I probably have more, but that's all I can think of at the moment...
- securing my seconded role as a permanent role (includes $20K payrise,vehicle + other perks)
- breeding my first litter of Ragdoll kittens, and having show quality in the litter
- finish off renos around our house, ugh, seems never ending
- take a memorable holiday somewhere in January 11 (unsure of destination)
- continue to build my online business, to eventually replace my salary with residual income (long term, but short term work required)
- continue to coach my daughters (12&14) in goal setting, and thinking about their futures
I probably have more, but that's all I can think of at the moment...
My financial ones are focused around
- Risk mitigation (Cash buffer, lease structure, insurances)
- Minizing outgoings (On rentals & Personal)
- Maximizing income from exsisting rentals
- increasing share portfolio & education about shares
Personally
Haven't sat down and thought about that one yet, will probably revolve around healthly living.
Regards,
RH
- Risk mitigation (Cash buffer, lease structure, insurances)
- Minizing outgoings (On rentals & Personal)
- Maximizing income from exsisting rentals
- increasing share portfolio & education about shares
Personally
Haven't sat down and thought about that one yet, will probably revolve around healthly living.
Regards,
RH
