Hello,
my first post in this busy looking community.
I'm purchasing a cheap property over 5 hours drive from Sydney, way out in the sticks in a small town and not too far from other larger towns.
I actually want to become a property investor and renovate homes and sell them off. I used to be a landscaper years ago so doing up the outside will be my main focus so I will look for these types of homes (with reasonable interiors & solid simple structures). I'm staying away from those big old houses with high ceilings, they just look like way too much work.
When I say bottom I mean bottom and I'm sure many of you would think the price I'm paying is what you would normally spend on renovations. Yes under $80k. But the good thing is I won't have to pay rent anymore which currently is $1,000 a month in Bondi for an average studio plus I won't have a 30 year mortgage. I'm lucky as I work online so a long as I have my laptop & an Internet connection then I can work anywhere. But I do enjoy the beach in summer so I will miss that but eventually I will buy a nice property close to a beach. I'm not looking forward to the cold winters out in the sticks but hopefully it will be just one winter and I can have my first property sold within 6-12 months.
With the FHOG and a good chunk of cash I have saved then I will be putting in 60% deposit and the bank will pay the rest. I expect to have that finalized next week. Since I'm self employed with a fairly new business then obtaining a larger loan would be pushing it so my strategy is to start small and use this property as a stepping stone to bigger things. I will save $12,000 in rent if I stayed there for one year and in 2 years I will have paid of my loan at near what I would have paid on my rent. I will probably just pay the loan off within 6 months anyway if my income is good.
I hope to add enough value on my first home without spending hardly anything besides some creative landscaping, planting then sell it off close to 100k but I would not be too stressed if I only got what I paid with a slight profit to cover interest & improvements. If I have paid my loan of by then it would mean I have close to 100k in the bank (or the price I sell it for) . This could be the deposit on my next home plus I will have a longer banking history for my business so getting a much larger loan will probably a bit easier. Maybe I can then get a loan for 300k/400k which would mean I could have a lot more flexibility in my next investment.
I'm actually just excited to own my first home, not have any rental agents or prospective home buyers bothering me and having the freedom of doing what I like in my house. My girlfriend is studying overseas and she will be here late next year so I would probably have a new property by then. It will be a bit lonely way out in the country but I really don't mind that and I enjoy a peaceful creative environment.
So what are your thoughts on my strategy to enter the property development arena considering my circumstances? Have you any good tips and advice on buying my home, anything to check before I agree to the final signing?
my first post in this busy looking community.
I'm purchasing a cheap property over 5 hours drive from Sydney, way out in the sticks in a small town and not too far from other larger towns.
I actually want to become a property investor and renovate homes and sell them off. I used to be a landscaper years ago so doing up the outside will be my main focus so I will look for these types of homes (with reasonable interiors & solid simple structures). I'm staying away from those big old houses with high ceilings, they just look like way too much work.
When I say bottom I mean bottom and I'm sure many of you would think the price I'm paying is what you would normally spend on renovations. Yes under $80k. But the good thing is I won't have to pay rent anymore which currently is $1,000 a month in Bondi for an average studio plus I won't have a 30 year mortgage. I'm lucky as I work online so a long as I have my laptop & an Internet connection then I can work anywhere. But I do enjoy the beach in summer so I will miss that but eventually I will buy a nice property close to a beach. I'm not looking forward to the cold winters out in the sticks but hopefully it will be just one winter and I can have my first property sold within 6-12 months.
With the FHOG and a good chunk of cash I have saved then I will be putting in 60% deposit and the bank will pay the rest. I expect to have that finalized next week. Since I'm self employed with a fairly new business then obtaining a larger loan would be pushing it so my strategy is to start small and use this property as a stepping stone to bigger things. I will save $12,000 in rent if I stayed there for one year and in 2 years I will have paid of my loan at near what I would have paid on my rent. I will probably just pay the loan off within 6 months anyway if my income is good.
I hope to add enough value on my first home without spending hardly anything besides some creative landscaping, planting then sell it off close to 100k but I would not be too stressed if I only got what I paid with a slight profit to cover interest & improvements. If I have paid my loan of by then it would mean I have close to 100k in the bank (or the price I sell it for) . This could be the deposit on my next home plus I will have a longer banking history for my business so getting a much larger loan will probably a bit easier. Maybe I can then get a loan for 300k/400k which would mean I could have a lot more flexibility in my next investment.
I'm actually just excited to own my first home, not have any rental agents or prospective home buyers bothering me and having the freedom of doing what I like in my house. My girlfriend is studying overseas and she will be here late next year so I would probably have a new property by then. It will be a bit lonely way out in the country but I really don't mind that and I enjoy a peaceful creative environment.
So what are your thoughts on my strategy to enter the property development arena considering my circumstances? Have you any good tips and advice on buying my home, anything to check before I agree to the final signing?
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