Buy, reno, hold, get some money out - can someone put some real life $s on this.
- Thread starter LeeJ
- Start date
Haaaaaaaa , love it.
I went to a "seminar" that she was talking at, stupidly paid $100 to attend. It was about 18 months ago when I was in the process of buying and everyone was running scared with the GFC. It was advertised something along the lines of "Where the markets are headed" and I wanted some opinions on the subject. There were a few presenters advertised but being a newbie to the property talk circuit, I truely thought for my money I would be getting something extra for my money, but I was really only there for the market opinion.
Well.............. spruiker after spruiker got up and talked, all using what I know know to NLP and they all had overpriced courses to sell and they all had a special offer only open for the first X people who signed up. Should have seen the people running down the back waving their credit cards!
I waited and waited and waited to hear the promised talk about the market and finally I had to leave at 7.10 pm as I had to catch a train back to Newcastle (which turned out to be the milk run), and the talk still hadn't eventuated. I sat there all day. Waste of money. I have since come to the opinion the person giving the market talk only got his research and words from associates in this industry who have alot more credibility.
Wasted 1 full day (4.30 am till 11pm door to door), didnt see my then 2 year old for 2 nights and a day and the hubbie was on shift so didnt see him for 3 days, oh and $100.
I wonder weather Carly Crutchfield really does do the developments she claims to... seems the selling of "courses" is probably her biggest source of income.
Oh well, you live and learn, and I definately learned a lesson with that adventure.
That's the way I play the game, lot less physical effort. Will leave the reno's for you Rob! By the way - it's the 16th already, have you bought a property this month yet?
He has a deleted post that would have been #4.
I know a few women who would think that was money well spent
If you learnt something then it wasn't a complete waste of time.
getting back to examples....
I bought a one bedroom house outside of ballarat for $57,500. the vendor was living there, but it didnt have a stove, and there was some firedamage to the walls etc. It was a dump.
Got a builder to pull out the old fire, replace some walls and part of the roof etc. got a new sink and stove, painted the place etc etc.
Took about 4 months from purchase to find a builder, and finish the reno, I used a credit card to pay (I first assumed I could borrow a higher percentage at purchase and use other funds for reno) and it was pretty scary all round. I spent about $5k all up on the reno.
Anyway, when it was done, val came in at $75k and I got a 12 month lease for $100pw. I have had a couple of tenants since, its never been empty, rents now 105pw, val 80k.
If I knew the trouble I would have financing a 49 sqm house, finding a builder to do the job, and how I react to stress levels, I wouldnt have bought the place.
Having said that, its a good yield, and my reno did create some borrowable equity to use for the next purchase.
I bought a one bedroom house outside of ballarat for $57,500. the vendor was living there, but it didnt have a stove, and there was some firedamage to the walls etc. It was a dump.
Got a builder to pull out the old fire, replace some walls and part of the roof etc. got a new sink and stove, painted the place etc etc.
Took about 4 months from purchase to find a builder, and finish the reno, I used a credit card to pay (I first assumed I could borrow a higher percentage at purchase and use other funds for reno) and it was pretty scary all round. I spent about $5k all up on the reno.
Anyway, when it was done, val came in at $75k and I got a 12 month lease for $100pw. I have had a couple of tenants since, its never been empty, rents now 105pw, val 80k.
If I knew the trouble I would have financing a 49 sqm house, finding a builder to do the job, and how I react to stress levels, I wouldnt have bought the place.
Having said that, its a good yield, and my reno did create some borrowable equity to use for the next purchase.
Id simply like to interupt and say thanks for the share. People dont really appreciate this kinda thing unless they have something to compare against.
Ive spent the dollars on courses so i appreciate your share rob. thanks a bunch. Ive learnt something
Yes it is a great way to leverage yourself to more property and double up on say five properties instead of one if they were to all double in value or the rent continued to rise for example.
But if the properties even stay only the same value you will lose bigtime with fees and those other dollars that seem to disappear along the way!.
Problem is we all want high valuations and if they are too high which can easily be the case in the last few years, you could be living with a sense of false security which is dangerous in down times and can come back to bite you badly.
Many new investors seem to get confused and think the accessed equity is free
when of course it only adds to your loan as more money borrowed, which I guess if it is an interest only loan is small but they all start out that way.I am sure you know it would be a seriously risky way to go right now, when times get tough there is inherantly no exit strategy.
They must have been short on numbers and offered my two free tickets to a Perth seminar. I didnt turn up and they've stopped calling me now.
Hi,
Buy $55k reno $5k, reval $140k rent $200pw
Buy $130k no reno required, reval $200k, rent $290pw
Buy $212k, no reno required, reval $300k rent $300pw
Buy $22k, reno $25k, reval $140k, rent $200pw
Could go on all day
Nathan, you missed out the location information. If you want you can be very general eg Western NSW. Not expecting street names and suburbs.
Cheers
Graeme
Buy $55k reno $5k, reval $140k rent $200pw Orange House
Buy $130k no reno required, reval $200k, rent $290pw Mt Druitt
Buy $212k, no reno required, reval $300k rent $300pw (central coast waterfront property which were selling new 4 yrs prior for $480k)
Buy $22k, reno $25k, reval $140k, rent $200pw regional NSW house.
Buy $130k no reno required, reval $200k, rent $290pw Mt Druitt
Buy $212k, no reno required, reval $300k rent $300pw (central coast waterfront property which were selling new 4 yrs prior for $480k)
Buy $22k, reno $25k, reval $140k, rent $200pw regional NSW house.
Nath if you want to be seen as a real property investor you need to be photographed bending down infront of your rented ferrari
not a blue ford.............. 
