3-4years ago purchased my first 3 bedroom IP for $310k. Just had a quick look on realestate.com.au and the cheapest 3 bedroom house in the area now is $430k which looks pretty tiny compared to mine. Didn't think it would have gone up anywhere near this much in the space of the time that it has. Cheering!
Just realised...
- Thread starter Nikolina
- Start date
It's a Nice Feeling isn't it ...
So maybe 120 - 150 K gross gain ?. how long would it have taken to save that ...
Cliff
Spain. Expensive lesson in just how much real estate can crash when demand dries up.
There are some bargains around now but if you don't live here or near here I would say no, not worth checking out.
Ahhh
I'd never realised why Spain had been so badly hit until recently . Because it was marketing itself as the holiday place to go to , a higher percentage of properties where in the discretionary spend segment , so when the GFC hit and people stopped spending , the weekender / holiday house was the first to go .
Obviously for someone on the ground , there will be good opportunities in the coming years for well chosen properties , good localities etc .
Cliff
I'd never realised why Spain had been so badly hit until recently . Because it was marketing itself as the holiday place to go to , a higher percentage of properties where in the discretionary spend segment , so when the GFC hit and people stopped spending , the weekender / holiday house was the first to go .
Obviously for someone on the ground , there will be good opportunities in the coming years for well chosen properties , good localities etc .
Cliff
Yep! Loving my Sydney purchases right now. Especially the Blacktown and Mt Druitt ones.
Where is your IP?
Yep! Loving my Sydney purchases right now. Especially the Blacktown and Mt Druitt ones.
Where is your IP?
Glenmore Park.
I have been refinancing my west Sydney ones to extract equity and buy again using the same strategy. Capital gains are good and yield has been excellent.
I haven't seen Spain but observed circa 50% falls in parts of Europe, plenty of empty shells of unfinished builds simply as demand was switched off due to the GFC. These were set against a background of slight population loss for the country I'm thinking about, doesn't help at all.
For the OP great that the capital growth fairy (as Keith termed it!) has visited, wonderful when that happens
Grats to OP, is a nice feeling I remember from selling my first home just over a year ago. But here is my IP story.
I have just sold my IP (well it's still settling)
Bought for $319k
Sold for $348K
Held for ~3 years.
Interest paid on IO loan (minus rent) ~$17k
Estimated CG tax between 4-6k
Profit ~ $6-8k....wait
Out off pocket expenses involving bad tenants about $6-8k. (my own fault, the saying 'no good dead goes unpunished' springs to mind)
Its been an interesting experience. No complaints and have learnt a lot about banks, finance, people(tenants and Pm's) etc etc.
Decided to sell for lifestyle reasons, not profit. Oh and a very bullish outlook but that belongs in a different post.
Well done OP
I have just sold my IP (well it's still settling)
Bought for $319k
Sold for $348K
Held for ~3 years.
Interest paid on IO loan (minus rent) ~$17k
Estimated CG tax between 4-6k
Profit ~ $6-8k....wait
Out off pocket expenses involving bad tenants about $6-8k. (my own fault, the saying 'no good dead goes unpunished' springs to mind)
Its been an interesting experience. No complaints and have learnt a lot about banks, finance, people(tenants and Pm's) etc etc.
Decided to sell for lifestyle reasons, not profit. Oh and a very bullish outlook but that belongs in a different post.
Well done OP
Hi there, are you still paying them off as a strategy? I remember you didn't want to keep them interest only.
I was going to mention that... I bet she wished she bought a few more now.
Yeah my loan from day one has been P&I. My morgage isn't much. Almost paid off.
I actually don't wish this one bit. Not my style. Ive been saving ever since and will buy my next IP early next year or end of this year with a massive deposit and only a little loan needed. I don't like debt.
Corruption was also a major problem in Spain particularly in tourist areas on the coast where most of the development was taking place. Local governments were bought off at extreme levels, resulting in over-development and crazy development - 4-5 story apartment blocks springing up 10 metres from the front door of just-sold townhouses, completely blocking sea views was one example I saw. Vast amounts of illegal development and no protection for purchasers did not help with the crisis of confidence brought on by the GFC. I spent some time in a small-ish port time a couple of years ago and council did not have money to collect the rubbish - last two mayors had been arrested on corruption charges. Fun.
It's funny even looking back and now seeing the profit you have made, you still don't consider leverage to be a good tool. I have no doubt that you will have good success if you continue to buy well and paydown debt, sure won't go broke. But I look at it a different way and see opportunity lost.
I hope my properties perform as well as yours and that way I can continue to leverage off them
This is pretty good low risk outlook that will let you achieve your goals over time.
where did she say that ?
Obvioulsy that is false. Assuming she did use leverage to purchace her IP in the first place and make good gains. Seems like she would think it is a good tool. Nothing wrong with reducing risk by reducing debt. Why risk losing all those gains.
diffrent people, diffrent goals, diffrent strategies.
