Your Story

Following on from RPI's thread "How did you start" I thought it might be a good idea for some other members to post their story. It is always interesting to hear others views and what started them off, so I'll be brave and start with mine.

1987 single and renting I decided that rent was a waste of money, so decided to buy my first home. I had no savings at that time, so borrowed the deposit from my parents and took a huge leap and bought the best I could for the little money I could borrow. $56k very much renovators delight in Wollongong.

Soon after met my now husband, got married and fell pregnant almost immediately. Left work to look after child. Then disaster hit. Hubby retrenched, interest rates 18% another child on the way. We decided that we were not going to loose the house, so between us took any and every job we could just to put food on the table (ie rice, beans, noodles).

We tried just about every self employment idea also. In the midst of all this found one that worked, so stuck to it and developed our own business.

1997 reading the paper saw an ad for one of those mortgage reduction company's and booked an appointment. All we wanted was to get our house paid off, so we could never be hurt again.

He suggested that we get a LOC to pay for the morgage and they would monitor it and then we could get an investment property. This was news to us and something we had never thought of, and his company's fees were huge.

We decided that we could do what he suggested (it sounded so good), but bypass his company and do it all ourselves.

As we were self employed (and not earning much) we had a very hard time getting the finance, but were eventually successful and bought our first investment property for $90,500 in Campbelltown NSW. Spent about 2 months renovating, had it revalued for $120k and put our first tenants in paying $185pw.

We were ecstatic. We were successful. We had 2 houses.

In actual fact we were like most investors who don't see the big picture and thought that we were set for life with just this second house.

Late 1999 we did a very silly thing and started a second business, which in its first three months of operation looked like it would be successful but soon proved otherwise. We were loosing over $1000pw and bankruptcy was looming very fast. Business and assets were in our own names (didn't know any better) and we were scared of loosing everything. We were tied to a lease for two years and had tried to negotiate out of it, but couldn't. We had 2 choices, stay and fight, or declare bankruptcy and leave with nothing. We chose to stay. Hubby took a job in Sydney while I (and the kids) ran the 2nd Business, our Sales rep took over the first Business and together we worked evenings and weekends in both.

Sold PPOR for $156, paid out the loan and was left with about $130k and moved upstairs in the Business Premises (it had a toilet and shower). This
was much worse than the 18% interest rates, but knew it was for a finite period of time, which made it bearable.

Bought 2nd IP (with intention it would become our PPOR when we could move
from business) with a hefty deposit from sale of PPOR using a business profit and loss as proof of income (which was based on the first two months of business), and parked the remaining money in an offset account, because we still had over a year to go in our self imposed hell and knew we would need the money. Purchase price $210k, deposit $90k, rented at $245pw.

During this time I found the forum and together Hubby and I decided to do some gambling. I had researched property prices and yields and the bank had approved a loan of approx $90k left over from the last purchase. The best yields I could find were in Tasmania, so thats where I went. My thoughts were, if it is cashflow positive we can't loose money. Boughht two. First $59k rented at $145pw, second $28k rented at $105pw.

2001 Hubby gets hurt at work(electrician), so they send him out on hired labour to do a desk job. He ends up being offered a job (huge increase in salary),but it is further away from home.

Sept 2001 able to leave failing business behind, but cannot move to house that was to be PPOR (don't want to commute), so rent close to Hubby's work. Life is good once more.

2002 bought 5th IP. $66k rented $145pw.

Owners want to move back into our rented house, so have to move. Buy 2 houses on one subdividable block $267k. We live in one, the other (6th IP) rented for $175pw. Sold one of the Tassy homes $42k (should have held onto that one a bit longer).

2003 bought 6th, 7th, 8th & 9th IPs. Block of 4 Strata Titled flats $225k, each rented for $125pw.

2004 buying (not settled yet) 10th IP $90k rented for $230pw, and 11th $35k rented at $135pw.

Total
1) Purchased $90,500 Valued $295,000 Rent $195pw
2) Purchased $210,000 Valued $350,000 Rent $255pw
3) Purchased $59,000 Valued $150,000 Rent $145pw
4) Purchased $28,000 Sold $42,000
5) Purchased $66,000 Valued $120,000 Rent $145pw
6) Purchased $267,000 Valued $420,000 Rent $175pw (2 houses, only one rented)
7,8,9 & 10) Purchased $225,000 Valued approx $250,000 Rent $520pw
11) Purchased $90,000 Rent $230pw
12) Purchase $35,000 Rent $135
 
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