Hello to everyone - Introduction

Discussion in 'Introductions' started by ShalP, 14th Dec, 2019.

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  1. ShalP

    ShalP Member

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    14th Dec, 2019
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    Melbourne
    Hello everyone,

    I am new to this forum and new to property investing as well. Based out of Melbourne I have left by previous profession in technology to dedicate myself to property investing. Currently have acquired a couple of properties in the Ballarat region and doing as much of the reno myself.

    Plan is to establish and build a portfolio for retirement in the next 15 years. I am 42 years old.

    Rgds
    Shalan
     
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  2. wylie

    wylie Moderator Staff Member

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    Welcome to the forum. Do you have a job now or are you renovating during your working week, and if so, what is the plan going forward?
     
  3. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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  4. ShalP

    ShalP Member

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    14th Dec, 2019
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    Location:
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    Thanks guys. I have left my job and handed over the reins to the missus in regards to income to keep the bills paid. The plan roughly is as follows and I plan to do it full time

    I have sufficient funds in savings to acquire ( with 80% financing ) a sub 300 K property. Plan is to do all non-structural reno ( paint, flooring, landscaping etc ) myself and get contractors to do the rest. Flip property and use profits towards acquiring rental assets. Rinse and repeat ...
     
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  5. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    Location:
    Vaucluse, Sydney.
    After site acquisition costs, legals, Stamps, Reno, holding costs, marketing, etc, what gross profit margin on total project costs are you anticipating? And in what timeframe?
     
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  6. ShalP

    ShalP Member

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    My anticipated profit margin is between 30 to 50 K. The property is currently tenanted by the current owners.

    So I assume the timeframe that you are referring to is from when the tenant exits and the property is renovated to when its sold ( settlement completed ) ? It would be 6 months.
     
  7. MWI

    MWI Well-Known Member

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    Just be careful and be clear whether you plan to run this as a business hence GST and profit payable, different tax consequences. Also remember to add holding costs {if not for cash}, sell costs, buy costs, any CGT or tax costs. many things to consider and somehow I doubt there would be a large profit margin on $300K property?
     
  8. ShalP

    ShalP Member

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    Location:
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    Noted thanks MWI. I secured the property for about 15k less than market value. I am hoping it offsets the selling costs and a little of the stamp duty costs. I have also registered a family trust and purchased the property under the trust name so as to divide the profits among the wife and myself to reduce tax. This one is a learner project for me to help me build up my confidence with flipping so I won't be too much worried if I don't make the projected amount.
     
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  9. KingBendtner

    KingBendtner Well-Known Member

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    Location:
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    Welcome @ShalP
    Interesting story and move!
    I'd like to know, if you don't mind, how you ended up with few properties in the same region (Ballarat)? And are you intending to focus in this area/region only moving forward (for the budget of sub 300k)?
     
  10. ShalP

    ShalP Member

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    Location:
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    hello.

    Ballarat I found was just the right size that after visiting it and driving around it was easy to get familiar with - streets, local businesses etc. it takes a little over 2 hrs for me to reach from Melbourne.

    I am intending to continue my focus here as I have just started building a local network of people ( various trades, realestate agents)

    first flip will be in the market in a week or so. I think the median price has come up a bit now so I may no longer be able to find sub 300 houses with a reasonable land size at decent locations.
     
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