This is why I do what I do!

[simonjulie]

Hi folks
Just wanted to share a great result on a reno I did this year. Total time elapsed thus far = eight months and we have been using it as a PPOR for that time.
PP $580 . reno $20K(smoke and mirrors) stamp duty $25K .
New official written market valuation by valuer. $750K and rent @ $985pw.
That’s $125K clear new equity and if I where to refinance now @80% that would be a loan on the property of $600K at around 8%pa interest. The rental return is more than enough to still cover the loan repayments and the future capital growth will take care of any slight negative cash flow. Also I would take most of my original $$ investment back.
I probably won't touch this one until I see a bit of that Capital growth kicking in to the equation. Maybe six months or so down the track I might revisit it to see if it is ready to "milk". In that same time period I have also done a couple of smaller upgrades as properties became vacant, and one other major job in Sydney. The above example is just one of many as the machine keeps turning.
I love property Especially now rents are playing "catch up"

Simon

 

[yadreamin]

well done guys and thanks for sharing.
The rent is huge, who can afford that??
Keep on turning simonjulie

 

[simonjulie]

well done guys and thanks for sharing.
The rent is huge, who can afford that??
Keep on turning simonjulie

That's "The Secret" LoA at work.
Too often I get so busy with my plans that I don't see or truly appreciate what I have already.
We were going to sell this property but after going through the motions and expense of putting it on the market, decided that it was such a good property and loved living there so much that someone else might pay a premium to live there as it was pretty unique. It was listed for rent on allhomes.com.au for exactly one hour when we got an email from some interested folk in England. The rest is history.
Some folk might say we were lucky and that's OK but what really matters is the end result and that is very pleasing to the recipients of any good fortune.
So then we thought it to be a good idea to get a valuation done as we wanted to hedge against future CGT so when the val came back at $750K we were equally pleased with the result.
This stuff happens to us all the time.
I just have to focus more on appreciation than calculation.
Regards
Simon

 

[asdf]

Hey Simon&Julie. Big congrats. Great work. Is this one of the K Heights properties? I noticed rents have slowly increased in those areas. Massive rental drought for homes in Balgowlah, Harbord, Fairlight areas too. Easily get $800-$1k a week. So I'm thinking although houses still upwards of $800k+ in those areas even up to Manly Vale and Allambie, if rents are that high, is it a bad punt for a couple of years until this market picks up again.... But then the UCV is probably in the $600s mark which sets you back $4-5k a year in land tax. Then you're done in terms of IPs in NSW. Love the state taxes.... pause (for those who've seen Borat) ........ NOT!

 

[simonjulie]

. Is this one of the K Heights properties?
No, in the ACT.
The other bigger Reno I refered to is in KH. I expect a good rent for it in February when we have finished enjoying it and move on to another I bought in the area last year.
Simon

 

[Sultan of Swing]

Great result Simon and Julie. Thanks for sharing.

 

[sailor]

SimonJulie, you are an inspiration....keep it up. Do love the LOA...best thing I ever learned. Thanks for sharing your story.

 

[luce.rocks]

what's LOA?

 

[sailor]

Laws of Attraction. See this thread for a discussion.
http://www.somersoft.com/forums/showthread.php?t=27719&highlight=secret

 

[luce.rocks]

Laws of Attraction. See this thread for a discussion.
http://www.somersoft.com/forums/showthread.php?t=27719&highlight=secret

thanks!

 

[Sultan of Swing]

Laws of Attraction.

And I was thinkin it was Living off Assets!

Makes mental note to start reading the 'The Secret' thread. I'm obviously missing something pretty good....

 

[MarkB]

Hi Simon

Are you able to say how much of the $150k equity increase* is due to "the market" and how much to the reno specifically?

Or alternatively, if the property was un-reno'd - what would the value be now?

Thanks

M

* $750k less $600k ($580k plus reno of $20k)

 

[lizzie]

thrilled for you ...

property can sure make you feel good. and that loa certainly does work in mysterious ways ...

 

[simonjulie]

Hi Simon

Are you able to say how much of the $150k equity increase* is due to "the market" and how much to the reno specifically?

Or alternatively, if the property was un-reno'd - what would the value be now?

Thanks

M

* $750k less $600k ($580k plus reno of $20k)

Hi Pitt St

It was originally valued at $680K in 2005. We waited and bought it at $580K when the vendors were getting desperate as they had bridged finance and had moved out. We bought it at $100K below market value.
We took financial advantage of someone elses lack of appreciation for what they had. The house was unloved, in need of repair and maintenance and poorly presented.

Simon

 

[markp]

Hi Simon

A highly satisfactory result guys.
cheers