Advice On Flipping Property and Investing as Main Source Of Income

Discussion in 'Investment Strategy' started by Cherrychan, 26th Apr, 2019.

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  1. Beano

    Beano Well-Known Member

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    Have you thought of keeping the property instead of selling ?
    Many people (including myself) regret selling 20 or 40 years later ?
    If you hold in 20 to 40 years time you could have a portfolio of 100 properties.
    Not paying tax on the profit would in itself be large enough to fund a couple of properties.
     
  2. Cherrychan

    Cherrychan Active Member

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    I'd love to hold on to properties. I will start holding hopefully late this year or next year and maybe flipping one a year, then buy two, rinse and repeat, or build units etc. I've just been trying to build up my cash flow, as I pretty much started from nothing at all. Zero $ in my bank account. I'd love to hold the current house that I've completed but if I sell I could use the profit for deposits for at least 3 more or to build a few units. I'll explore my options further and try to work out the best strategy.
     
  3. Beano

    Beano Well-Known Member

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    By holding you
    1:save legal costs
    2:save marketing cost
    3:save real estate fees
    4: save capital gains tax or income tax
    5:keep the knowledge of the property
     
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  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Alternatively instead of selling you could borrow against the equity you have generated in this house to raise the deposit for another purchase(s)
    Sometimes selling and the costs/tax is not as effective as holding and borrowing against. You can also get rent which will increase your ability to borrow.
     
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  5. Brendon

    Brendon Well-Known Member

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    Can you max out your loan against your current property and maybe buy 1-2 more while you have a job. This would give you enough projects for 12 months and if you are correct and are doubling your money then you’d be able to self fund once you’ve sold all those off?

    I believe it may also be possible to keep loans open from one property to another?
    You’d have to check with a broker but I think there is a way that you can just switch what the loan is secured against without serviceability checks.
     
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  6. Cherrychan

    Cherrychan Active Member

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    Yeah, I have been thinking about doing something similar to what you are saying. I would like to hold onto this property. If I did sell the current property though I would make my largest profit so far, and then after my next 1 or 2 flips if they only made an average profit I could still actually buy outright If I wanted without the banks help.

    I'm going to explore all my options and before I make any more moves I might seek some professional advice. I'm just not sure how to find good professional advice. I'll have to start asking around locally.
     
  7. Hosko

    Hosko Well-Known Member

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    What if you flip this around and seek professional advice to understand how a trust may work for you?
    See a solicitor and use their expertise, if you have flipped houses I would assume you have used a professional for the transactions?
     
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  8. Hosko

    Hosko Well-Known Member

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    And well done on the great work so far!
     
  9. TMNT

    TMNT Well-Known Member

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    coming from a slum lord like me, what price range and rents your reno projects?

    holding a lot of Ips is a job in itself and cashflow on paper could be good, but reality can be very different, hence why I asked for figures