Starting out - full time renovating

Starting out

Hi my name is Jason.
I have just registered with Somersoft and this is my first post.

I am a carpenter with about 15 years experience and I would like to go out and start buying properties and renovate them and either sell or rent them out depending on the circumstances.

I am seeking advice on where to start and the feasability of doing this on a full time basis.
My wife and I have just bought our first house for 250k of which we owe 237k. I have just renovated it and have already had it valued at over 300k.
My wife and I both work fulltime but I would like to get into the investment property business fulltime.
A couple of questions
How do I go about getting financing for this ? Bank ? Financial Broker? Mortgage Broker? Which is better ?
And with the way the financing is structured can I do this full time ( well maybe not during the first one but after that).
Can I use this equity that I have accumulated in my existing property to start out?
As far as tax purposes what would be the best way? a company and incorporate it?
What about the projected downturn in the market would my timing be a little off for starting this ?
Any help or advice would be great because as you can see, I am a novice at this but I would really love to pursue this as I am tired of working for someone else.
Sorry for the length of this post.
Jason
 
Hey Jason!!!

Welcome to the forum!!!

I must, however, warn you not to admit your carpentry skills..... ;)

I am no expert, but I will give it a go answering your questions!!

I am seeking advice on where to start and the feasability of doing this on a full time basis.

Luckilly for you in your field, one would think that you could taper your 'job' off as your property investing starts to gear up. I would think this would be an idea. Also, if you are a 'carpenter' of all skills, perhaps some of the renovators/value adders in MEL would be able to utilise your skills...

My wife and I have just bought our first house for 250k of which we owe 237k. I have just renovated it and have already had it valued at over 300k.

WELL DONE!!! :D :D :D


How do I go about getting financing for this ? Bank ? Financial Broker? Mortgage Broker? Which is better ?

I would suggest you read over old posts, there is a wealth of information around about the various merits of each. I would recommend Rolf, he has just organised some loans for a friend of mine and they were very happy. But you need to look around.


with the way the financing is structured can I do this full time ( well maybe not during the first one but after that). Can I use this equity that I have accumulated in my existing property to start out?

Ask the broker/financier. :)

As far as tax purposes what would be the best way? a company and incorporate it?

asy throws this one to Dale...

What about the projected downturn in the market would my timing be a little off for starting this ?

This is really a personal preference one... But, I hasten to add that I have always thought that if the numbers add up, go for the deal. You may have to look a little farther or be a little more creative, but you will get there, you seem determined enough!

Sorry for the length of this post.
NEVER Be sorry for asking, it's better to ask, than be sorry you didn't!!!

I am sure you will get many replies to your post, mine is just some scrambled thoughts!

Good luck with it!

asy :D
 
G'day Jason

Good work on increasing the value of your home!

You've certainly started at the right place to gather information needed to make good decisions on investing.

If I was in your position I would try to formulate a plan of just exactly what you want and how soon you want it. As you would know things will become a lot clearer and easier to do with a plan to follow.

A lot of the information you need to help prepare a plan can be gained from the forum archives as well as some publications such as Jan Somers books.

Don't be in too much of a hurry. There's always going to be good oportunities in the investing world and the better armed you are to take advantage of the opportunities the better the outcome will be. A well implemented plan in the early stages will have a greater affect in the long term, just like compounding interest.

Your background as a carpenter will help you in many areas during the journey.

Good luck.

Rick
 
Hi jason,

First stop before you do anything else is to see your accountant and talk over your plans with him, sure help if he is a skilled small business accountant.
I have been advised to set up as a company and declare all income and costs, as will be taxed under normal tax rules. No C.G.T. on profits this way.
Dont even think about trying to hide you buy, renos and sells - you cant once you have done a few - to many linked computers in this world and will catch up with you sooner or later.
The tax gurus can enlighten you further, you may like to talk to your accountant about trusts before you start also.
You have the capacity to do well, god I wish I had your skills!
Good luck to you both and dont be afraid to pay for heaps of advise and guidence, its so much cheaper than the mistakes in the long run.
Best of luck
Denise
 
Back
Top