Anyone made fast equity and want to tell the story
- Thread starter DC4
- Start date
Can't say I've ever seen anyone make $1M from next to nothing overnight (outside of the share market), but I did enjoy a 15% gain in 3 weeks on a property deal.
We bought for a good price and settled a week before Christmas. Moved in on Boxing day and started furiously on a cosmetic renovation. Fairly simple stuff, paint, carpet, lighting, window dressing and some general repairs.
Moved out 3 weeks later, had the property revalued and a depreciation schedule performed. The same lender gave us an increased valuation 15% over the purchase price (on a full valuation). Depreciation report calculated the 5 year write offs at 3x what they'd cost, it paid for the renovations in actual tax refunds over the next 5 years. We also got a 39% increase in rent on the previous tenants.
We've still got that property, it's enjoyed an average of about 11% capital growth per annum since we bought it, but I suspect a lot of that was in those first 3 weeks.
We bought for a good price and settled a week before Christmas. Moved in on Boxing day and started furiously on a cosmetic renovation. Fairly simple stuff, paint, carpet, lighting, window dressing and some general repairs.
Moved out 3 weeks later, had the property revalued and a depreciation schedule performed. The same lender gave us an increased valuation 15% over the purchase price (on a full valuation). Depreciation report calculated the 5 year write offs at 3x what they'd cost, it paid for the renovations in actual tax refunds over the next 5 years. We also got a 39% increase in rent on the previous tenants.
We've still got that property, it's enjoyed an average of about 11% capital growth per annum since we bought it, but I suspect a lot of that was in those first 3 weeks.
From a recent poll, I think Handy Andy made over 4 mil equity gains in the past 12 months, so that's a mil in a few months, would that be considered quick?
I think it was a simple strategy, buy and hold was the basics of it...
I think it was a simple strategy, buy and hold was the basics of it...
As I said, context is important, like whether it was their first million or not.
If I had 100 million, I could make millions just in interest with little effort.
Yeah, well if someone did build a mil super quick through certain strategies, there would be certain people calling it luck, even if the person who achieved it doesn't consider it luck.
So who determines whether it was gained due to luck or not...
If you started with nothing, it would most likely require some luck, depending on what is considered quick.
So who determines whether it was gained due to luck or not...
If you started with nothing, it would most likely require some luck, depending on what is considered quick.
You're right of course - quickly is a relative term. From a story perspective it would be nice to talk about someone making their first million in a year or two but accept this is a big stretch in property and probably extraordinarily high risk.
Really just happy to just talk to people who have an "aggressive" equity building strategy that's resulted in the sort of equity gains that make others who hear it say "Geez... that's impressive!"
Andy sounds interesting. What did he do?
Really just happy to just talk to people who have an "aggressive" equity building strategy that's resulted in the sort of equity gains that make others who hear it say "Geez... that's impressive!"
Andy sounds interesting. What did he do?
The first million would make for a great read.
Luck would certainly play a part in that case, but it'd be interesting to find out what sort of research and analysis was done prior to buying the investment. Study the market cycle, look at certain stats, consider your locations, do you do renovation?? All that stuff would come into play I'd think.
Bought a house in Kalgoorlie 2004 85k spent about 10g on it then sold it 4 years later for 250k not bad turn around tripled in 4 years.
I have a strategy that builds equity quickly but have only just completed my second project so might be a bit early days. Basic run down:
Find land in an area where the land price is disproportionately low compared to established houses, move a house to it. Basic figures of our most recent project:
$90K - land
$80K - to complete the house (this includes all permits, connections, house move etc)
Total cost: $170K
Valued: $260K (real val around the $280-300K mark but I stuffed up and got the val before the C of O so the valuer listed it as "unlivable" - still happy though).
We only have a loan on the land so can pull lots of equity out roughly $144K. We will use this money for our next project.
Find land in an area where the land price is disproportionately low compared to established houses, move a house to it. Basic figures of our most recent project:
$90K - land
$80K - to complete the house (this includes all permits, connections, house move etc)
Total cost: $170K
Valued: $260K (real val around the $280-300K mark but I stuffed up and got the val before the C of O so the valuer listed it as "unlivable" - still happy though).
We only have a loan on the land so can pull lots of equity out roughly $144K. We will use this money for our next project.
