For some of the old timers on the site just an update for you on how ive built wealth through property in the last 2 years.
I have been a bear on property for last 3 years. Sold 2 investment properties ad developed another with the funds (cash).
The one we developed we now live in. its a 120 year old single fronted terrace 6 km north of melbourne. We will live here for the next 10 years.
Key figures
- 14 months ago prior to development house was worth approx 650k.
- Now the same house (without a reno) would be worth 750k due to the 12-14 pct increase over that time in house prices.
- decided to owner build. For those of you that know im semi retired (im 43 now) and together with 250k cash in the bank I was able to dedicate approximately 4 days a week to being on the tools.
- My best mate is a chippy.
- I bought everything wholesale (paid my mate by the hour) ad took on trades as was necessary. Most came from my mates contacts. All tradies were first class but reasonable rates.
- Went full eco/sustainable with construction and house performance. This means lots of reclaimed/recycled/remilled. Also led, insulation, solar, double glazed etc etc
- Spent in cash 270k this includes rent of 20k and also 10k in possible interest lost. So outgoings for the build were approx 240k.
Results - just got it valued by two agents. Both said aprox 1.2 mill (bwteen 1.15 and 1.25 mill.
So looking at a book profit of approx 300 k (no inflation) or 200k (with infltation on the house price)...
Pretty good return and in truth probably the best financial year of our lives.
Just got my first electricity bill (we are a 4 person family) - 90 days we used only 6kw/h average. A normal 4 person family uses approx 17. A one person dwelling in Melbourne averages 8. So our bills will be 1/3 of a normal family. Should be around 700 bucks per year in total.
Been reading about the markets and keeping an eye on other posters business and all in all the property markets looks great. Might jump back in and take on some debt in the next 12 months.
Cheers to all
Aussierogue
I have been a bear on property for last 3 years. Sold 2 investment properties ad developed another with the funds (cash).
The one we developed we now live in. its a 120 year old single fronted terrace 6 km north of melbourne. We will live here for the next 10 years.
Key figures
- 14 months ago prior to development house was worth approx 650k.
- Now the same house (without a reno) would be worth 750k due to the 12-14 pct increase over that time in house prices.
- decided to owner build. For those of you that know im semi retired (im 43 now) and together with 250k cash in the bank I was able to dedicate approximately 4 days a week to being on the tools.
- My best mate is a chippy.
- I bought everything wholesale (paid my mate by the hour) ad took on trades as was necessary. Most came from my mates contacts. All tradies were first class but reasonable rates.
- Went full eco/sustainable with construction and house performance. This means lots of reclaimed/recycled/remilled. Also led, insulation, solar, double glazed etc etc
- Spent in cash 270k this includes rent of 20k and also 10k in possible interest lost. So outgoings for the build were approx 240k.
Results - just got it valued by two agents. Both said aprox 1.2 mill (bwteen 1.15 and 1.25 mill.
So looking at a book profit of approx 300 k (no inflation) or 200k (with infltation on the house price)...
Pretty good return and in truth probably the best financial year of our lives.
Just got my first electricity bill (we are a 4 person family) - 90 days we used only 6kw/h average. A normal 4 person family uses approx 17. A one person dwelling in Melbourne averages 8. So our bills will be 1/3 of a normal family. Should be around 700 bucks per year in total.
Been reading about the markets and keeping an eye on other posters business and all in all the property markets looks great. Might jump back in and take on some debt in the next 12 months.
Cheers to all
Aussierogue
