Hello from Adelaide

Hi everyone. Just joined property chat, but have been viewing for some time. I love property!
I was a member on SS and posted a few times there.
A quick intro on where i am at on my property journey.
Early 2011 purchased a brand new townhouse in an average western adelaide suburb with the intent of being a PPOR. Lived there for 2 years and then decided to move out and rent as i discovered depreciation! Have been renting since.
Early 2013 purchased an IP using savings (as i had no equity) as a deposit in Elizabeth North and has been rented out since.

As i borrowed at 95% + LMI on both properties i currently have no equity (with negative/no growth according to my bank's desktop valuation in March 2014). Including depreciation and low interest rates cashflow is slightly negative.

Im renting with friends at the moment. I earn an average wage (Adelaide average) and taken a step back from property until a time i have equity available for another purchase, and subsequent purchases in the future.

I consider property as a long term goal hence i use a buy and hold strategy but am open to other strategies.

Currently 29 years old i hope that property will help me achieve enough wealth should i decide to retire before i can access super.

For my next purchase i hope to buy a free standing home with renovation potential, mainly to experience it and possible manufactur equity.

Not sure how long before i have available equity to do this.
I am sitting on the sidelines until such a time - hopefully not too long.

I enjoy reading peoples success stories and i love learning from this forum.

Thanks for listening.

 

Yay more adelaideans

Good luck with future investing

 

Hi there!!

Keen to learn more about where you live per se - I've been looking at Adelaide for next purchase (nearly bought in qld-that's another story...).

Any personal insights/ likes dislikes on Taperoo vs Hackham (Hackham West?) for a 3bed house?

Cheers!
Ije

 

What draws you to those 2 areas? They're at opposite ends of the metro area. Hackham is kinda feral (no worse than Elizabeth) but has good shopping centre, train station, etc nearby. Taperoo has industrial area nearby as well as Port Adelaide which the Govt is continually trying to re-gentrify (unsuccessfully so far).

 

Yeah I know- opposite ends of town!!!!
And you picked the reasons- if/when/gamble port Adelaide gentrifying, Taperoo will be on transport line and walk to the water--and as a peninsula the land mass (supply) is locked in.

Hackham- freeway, train, shops. I don't mind the clientele if insurance and pm fees are not inflated down there-I'd need to research that.

I've got a feeling a trip down is in order. Maybe when the tour down under is on

 

Hi @Philbie , welcome aboard.
Have you had the Elizabeth property valued recently?

 

I'm not familiar with hackham west. Ive known people who lived in taperoo (10 years ago) it did look like there were a lot of bogans in the area. I feel the beach side (west side of Victoria rd) has good potential given its neighbours like largs bay/semaphore have done quite well over the past 10 years.

 

Hi Azazel, thanks. No valuations done since. I've registered with the cba mywealth website and its showing little growth on the property and in the suburb in general :-( have u had any vals done recently in that area?

 

Both the areas mentioned have quite a few bogans. With a good PM thats not really an issue though as long as you're realistic. Taperoo is closer to the beach which might serve it better long term than Hackham.

If you contact a broker like @Corey Batt in Adelaide, he can do upfront valuations on it, which might indicate whether there's room for further IP purchases in there or not prior to doing any loan applications.

 

Thanks!!! I love bogans- I am one I guess the current state of shopping, schools, transport should push me Hackham. Sorry - feel like I hijacked your thread!!!

 

I don't have anything there myself, but there is a thread on here about it.

 

Azazel,, curious where you have properties - you usually have something to say about most locations

So spill

 

Don't want to derail the thread but:
With all the hype in the Elizabeth thread I was considering more research, but the high unemployment has kept me away.
If I was looking (I kind've am ), I'd be looking South Coast NSW for places currently on the up or some gloomy markets coastal QLD/North QLD if you prefer buying closer to the bottom than the top. Anything near the water on the East coast really.

 

Where have you invested so far?

 

Hi all, this is more of an update on my situation since I introduced myself to the forum in October 2015. From the forum posts, I am reading that many investors have done extremely well over the past 15 months. Well done to those investors - reading your stories and following your ‘journey’ helps keep me motivated to continue my path no matter how slow it is. Work wise, I continue to build my knowledge and make myself 'irreplaceable' and have recently discussed career progression with the business owners (I work for a small firm) - they do not have any formal 'review' process so I took it upon myself to approach them. They are looking into ways to progress my career – fingers crossed.

In relation to property there has been little progress – small capital growth on investment properties, circa 2-5%. I require another 10% growth before I can being to access equity for future investment purposes or purchase PPOR.

Cash flow – I have focused my efforts on consolidating my cash position. I have achieved the following

1. Extinguished bad debt (paid off car loan)

2. Set up a budget and track it via PocketBook app – dedicate savings each month.

3. Recently purchased a small % of a family friend’s private business via a share purchase agreement over 12 months– this person has been successful in previous businesses and is financially successful. Completed due diligence.

4. Fixed majority of IP Loans for 3 years (literally a week before they began rising late last year), with a small variable split. Any savings to be offset against variable portion.

5. Setup offset accounts.

As I have no financial capacity to manufacture capital growth in my IPs at this stage my main financial goal over the next 12 months is to complete the share purchase arrangement and stick to my budget.

I would like to thank all the forum contributors – your content is read by many people who do not post often (including myself).

 

They all sound like aweomse steps @Philbie , good on you for taking action.

What is step 6 and 7?

 

Hi DT - thank you. You have some fantastic posts on this forum.
That is a good question. So many possibilities!

 

It has been one year since posting an update of my personal situation. Over the past 12 months as I achieved my goals it was good to reflect on last year’s post to see how far I have come (and how much more I want to achieve). So, this post is really for me to keep track of my thoughts. It is hard work staying focused and right now I am not motivated to set any new goals for 2018.

At the moment….

Career – next 4 years mapped out with business owners.

Personal Well being – keeping fit and healthy.

Property situation – investment properties are doing well from a yield perspective but there has been no growth since last year.

Finance – dedicated savings plan in place to save a deposit for a home/investment property. Very very boring.

In the meantime as I continue with the above, i plan to enjoy the year ahead spending time with friends/family and seeing a bit more of Adelaide. Hopefully next year is a little more exciting.

 

Great way to keep focused is to put it out their for all to see, hats off to you.

How did the share purchase of private business turn out?

 

Hi Brady. The share purchase plan went ahead as planned. All going well thus far!