MannyB's Journey
Reply: 3.1.1
From: Manny B
Howdy all,
after reading so many great adventures, I couldn't help myself & decided to give it a go...
Well, I'm also fairly new to IP investing & to be frank about it, I got into it by pure luck. I got married at 1995 (aged 25) & bought our own home, I had a full time job in the IT industry (completed my computing degree end of 1991) & my wife worked casually. I had bought our home prior to getting married (managed to save up a deposit & bought it aged 23)... Anyhow, you may ask how did u get into IP investing, well this is the lucky part, we were given a block of land by my in-laws around 1997, which we just hung onto for a couple of years & seeing it was a corner we had 2 options; 1. Build a BIG home OR 2. build 2 villa units, & you guessed it, we built the 2 villa units, which provided us a great lesson (dealing with architects, council, finding a builder, going through contracts, paying all sorts of fees to utility services & councils, etc.). The units were completed mid 2000, but going through this whole exercise I got to realise the huge capital gains we achieved with something so simple (adding all of the expenses, they were cashflow positive from day 1 without considering the depreciation schedules). Around mid 2000 we purchased a weatherboard home on a decent block size (my whole idea is that land appreciates & if the land permits to whack another villa unit at the back & renovate the front home, I would be way in front). This home has almost doubled in value from the minor renovation I have undergone & is also cashflow positive (good considering it is around 12km out of Melb) & the land in the rear is still there ready for me to develop at a later stage. A small break was needed here due to quick additions to the family, daughter now being a little over 2.5yrs old & son 15months old, but got back into it early this year. Purchased another old home, focusing on the land value, huge corner site at a beach-side suburb of Melb which will fit 3 townhouses on, but for now this place is let out (negative cashflow for now), but when the time is right I will look at developing this site (which based on my sums will increase my equity substantially & should be cashflow positive when constructed)...
I'm a bit like some of the other forum members, not in a huge rush & want to see how the market will go with the interest rate increases... My goal is to develop these sites & to get permits (probably do 1 site at a time not to cause too much strain on the cashflow), but with the interest rates not being stable I may stall building to see if any other opportunities do arise, but to summarise my way of doing things are:
1. Buy well
2. Don't rush
3. look beyond the old paint you see
4. look at the land value & where the easements run (to not interfear with further developments) & see if there is a possibility to further develop
5. Keep IPs clean & in good shape (don't expect tenants to live somewhere I wouldn't, by that I mean having the home in good condition, ie. paint, gardens, etc.)
6. Develop or renovate & hold
7. Go back to basics using the KISS theory, Keep It Simple Stupid
8. Don't let others with old mentalities influence your decisions, if the figures stack up then go for it
9. Above all, ensure your partner (wife/husband) understand what you are doing
10. Have a good group of professionals you can work with, ie. builders, property managers, trades people (although I tend to enjoy doing many of these tasks)
11. Oh, how can I forget, networking!!! utilising such a great facility we have here & talk to friends that may have similar interests...
(I could add more, but most have been covered by other forum members)...
That is a quick snap-shot of my doings, but as all you guys, wanting to get out of the rat-race once & for all in the not too distant future (probably focusing on IPs)...
Cheers,
Manny.
Reply: 3.1.1
From: Manny B
Howdy all,
after reading so many great adventures, I couldn't help myself & decided to give it a go...
Well, I'm also fairly new to IP investing & to be frank about it, I got into it by pure luck. I got married at 1995 (aged 25) & bought our own home, I had a full time job in the IT industry (completed my computing degree end of 1991) & my wife worked casually. I had bought our home prior to getting married (managed to save up a deposit & bought it aged 23)... Anyhow, you may ask how did u get into IP investing, well this is the lucky part, we were given a block of land by my in-laws around 1997, which we just hung onto for a couple of years & seeing it was a corner we had 2 options; 1. Build a BIG home OR 2. build 2 villa units, & you guessed it, we built the 2 villa units, which provided us a great lesson (dealing with architects, council, finding a builder, going through contracts, paying all sorts of fees to utility services & councils, etc.). The units were completed mid 2000, but going through this whole exercise I got to realise the huge capital gains we achieved with something so simple (adding all of the expenses, they were cashflow positive from day 1 without considering the depreciation schedules). Around mid 2000 we purchased a weatherboard home on a decent block size (my whole idea is that land appreciates & if the land permits to whack another villa unit at the back & renovate the front home, I would be way in front). This home has almost doubled in value from the minor renovation I have undergone & is also cashflow positive (good considering it is around 12km out of Melb) & the land in the rear is still there ready for me to develop at a later stage. A small break was needed here due to quick additions to the family, daughter now being a little over 2.5yrs old & son 15months old, but got back into it early this year. Purchased another old home, focusing on the land value, huge corner site at a beach-side suburb of Melb which will fit 3 townhouses on, but for now this place is let out (negative cashflow for now), but when the time is right I will look at developing this site (which based on my sums will increase my equity substantially & should be cashflow positive when constructed)...
I'm a bit like some of the other forum members, not in a huge rush & want to see how the market will go with the interest rate increases... My goal is to develop these sites & to get permits (probably do 1 site at a time not to cause too much strain on the cashflow), but with the interest rates not being stable I may stall building to see if any other opportunities do arise, but to summarise my way of doing things are:
1. Buy well
2. Don't rush
3. look beyond the old paint you see
4. look at the land value & where the easements run (to not interfear with further developments) & see if there is a possibility to further develop
5. Keep IPs clean & in good shape (don't expect tenants to live somewhere I wouldn't, by that I mean having the home in good condition, ie. paint, gardens, etc.)
6. Develop or renovate & hold
7. Go back to basics using the KISS theory, Keep It Simple Stupid
8. Don't let others with old mentalities influence your decisions, if the figures stack up then go for it
9. Above all, ensure your partner (wife/husband) understand what you are doing
10. Have a good group of professionals you can work with, ie. builders, property managers, trades people (although I tend to enjoy doing many of these tasks)
11. Oh, how can I forget, networking!!! utilising such a great facility we have here & talk to friends that may have similar interests...
(I could add more, but most have been covered by other forum members)...
That is a quick snap-shot of my doings, but as all you guys, wanting to get out of the rat-race once & for all in the not too distant future (probably focusing on IPs)...
Cheers,
Manny.
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