Hi Blair
Firstly well done on the success of your first property buy. A great result.
In reading some of your other posts my concern is that you are a bit unclear about your strategy, and are kind of flying by the seat of your pants. While this can be fun and exciting - it makes it difficult to identify the right opportunities for YOU.
I have said it in the past on this forum that you really do need to develop a strategy first. This will help you to direct your attention to your next move. It will clear away a lot of the 'opportunities' which you are currently seeing and will ensure you don't invest and tie up capital, which doesn't form a part of your bigger picture.
Everything you are looking at currently is a 'potential opportunity'. If you have a strategy in place it will really help you narrow down what you are looking for.
Just my thoughts. As the two options above are quite a world apart from each other.
Blacky
Hey Blacky,
yes i understand the importance of a strategy for investing, and if i don't follow one i can end up doing things the long way.
i know both option A and option B are the opposite to one another but the reason i mentioned this is because currently i have a high paying job doing FIFO work which i may leave soon for a lower paying city job unless i can get my girlfriend a position on site with me...if we can do FIFO work together, then i will almost certainly go with option A and try and repeat the process a few times before i revaluate my strategies and goals.
However if i can not find work together with my partner in the FIFO industry then i was contemplating traveling for a bit after the completion of my first project. i would still want to continue property investing so would look for something like option B where i could purchase 2 or 3 cash-flow positive properties with the equity gained from my first investment and let them do there thing whilst I'm away traveling ( of course i would make sure i had cash reserves to fund any vacancies, maintanence issues etc)
ideally i would like to do option A and before i do complete my current project i will make sure my strategies are clear before moving on but one thing that does concern me a little bit and has been mentioned by other somersofters is the fact that there is so much competition out there in the perth market for these development blocks. i'm always on reiwa trying to find some good ones and run the numbers etc and its seems increasingly more difficult to find investments that work.
do you have any advice on searching for the right development project and also what sort of returns are the minimum expected for dollar spent on these projects.
i think i was very lucky with mine but ill give you the numbers...
it was a mortgagee sale in south lake so i picked it up for 425,000. (FHOG and stamp duty concession used) renos + subdivision costs = 60,000 and building for the back section 235,000. holding costs maybe around 15,000 but we plan to share our rooms out so that should neutral gear the retained house.
but end values of the 2 houses i expect to be
440,000 for the retained house and 500,000 for the back. (as at this time next year)
so that works out to be 215,000 equity gain.
i have been finding it hard to find retain and builds that will give me 50000-100000k profit, was i lucky with the first or is the market getting a lot tighter or am i maybe not looking in the right places??
interested on everyones thoughts.
cheers
-Blair
