Hi All
I'm new to the forum, a great read so far. Gotta love the internet, there's a forum for everything.
My names Dan and I live in Melbourne. I'm self-employed as a registered domestic builder. I turn over a few order homes per year (mostly the middle custom end of the market) where my role is mostly project managing with abit of hands on. I have also built my own investment projects in the past and plan to keep doing so.
Most of my investment advice has come from my Dad which has been good thus far as it was a good kick start but I'm starting to think "am I missing out on something". Most of my investments have been in my local area in outer Nth/West Melbourne where I guess growth rates aren't too high.
I bought and built my first place when I was 21 and since then had a few blocks and houses come and go setting me up in my current situation. My PPOR is paid off which has a market value of about $550k-$600k and I have a 2 unit (1 townhouse, 1 unit) IP which has neutral cash flow. Both properties I built. Some months ago I laid a deposit down (this time joint shared with my girlfriend) on a block again in my local area. Currently getting plans drawn and the build will commence shortly. We have taken a loan out for the land portion only but I will be using my line of credit to do the build. At the end of the build I plan to re-value & re-finance the project and take out a separate loan.
I estimate that the new project being a 3 bed + study will produce a positive cash flow of somewhere around $500-$1500 per annum at worst case scenario.
If I was to sell it off I'd pick up around $70k-$90k. Do I keep or do I sell is something I'll have to decide later. I did make a decision some time ago that if an IP did at least have neutral cash flow that I'd keep it.
I believe I am in a good position to start making some good investments somewhere. There is 2 incomes involved now aswell as I have access to working capital.
The question that I often encounter within myself is do I stick to what I know in my local area? or should I start to venture out? I'm stuck on the idea that I need to build in order to make money.
Any thoughts & ideas on this appreciated.
I'm new to the forum, a great read so far. Gotta love the internet, there's a forum for everything.
My names Dan and I live in Melbourne. I'm self-employed as a registered domestic builder. I turn over a few order homes per year (mostly the middle custom end of the market) where my role is mostly project managing with abit of hands on. I have also built my own investment projects in the past and plan to keep doing so.
Most of my investment advice has come from my Dad which has been good thus far as it was a good kick start but I'm starting to think "am I missing out on something". Most of my investments have been in my local area in outer Nth/West Melbourne where I guess growth rates aren't too high.
I bought and built my first place when I was 21 and since then had a few blocks and houses come and go setting me up in my current situation. My PPOR is paid off which has a market value of about $550k-$600k and I have a 2 unit (1 townhouse, 1 unit) IP which has neutral cash flow. Both properties I built. Some months ago I laid a deposit down (this time joint shared with my girlfriend) on a block again in my local area. Currently getting plans drawn and the build will commence shortly. We have taken a loan out for the land portion only but I will be using my line of credit to do the build. At the end of the build I plan to re-value & re-finance the project and take out a separate loan.
I estimate that the new project being a 3 bed + study will produce a positive cash flow of somewhere around $500-$1500 per annum at worst case scenario.
If I was to sell it off I'd pick up around $70k-$90k. Do I keep or do I sell is something I'll have to decide later. I did make a decision some time ago that if an IP did at least have neutral cash flow that I'd keep it.
I believe I am in a good position to start making some good investments somewhere. There is 2 incomes involved now aswell as I have access to working capital.
The question that I often encounter within myself is do I stick to what I know in my local area? or should I start to venture out? I'm stuck on the idea that I need to build in order to make money.
Any thoughts & ideas on this appreciated.