my not so great investment experience: Cheapie strategy

Not 100% sure, but i doubt it.
The story does sound very unusual.

Sell down is almost complete.

14 sold in 2.5 years

3 more to go

 

Bejeesus man....what about capital gains.....

 

I thought the same.....but then, if they have had little gain, it's not really that much of an issue, is it?

 

Just have to ask with all the selling cost's from legal people agents down too the cleaners and 14 in a row how did the money break down in after tax dollar ..Must have some good % gains ..

 

I wouldn't be making the implied assumption @TMNT hasn't taken CGT into account in reaching the decision. It's only one factor in the "peace of mind" stakes and there were seemingly a number of them involved.

Funny. Invest $100k make a $20k profit after 12 months, include $10k in the tax return, pay say $5k on it and not focus on where to invest the $115k remaining in the bank account. Time the CGT by all means but to get close to an obsession over paying tax is very odd in my opinion.

 

As my Daddy used to say:

“When you’re payin’ tax, you’re makin’ money”​

 

@SatayKing is right, Taxes were a very small factor in my decision to sell off

 

My decision to sell wasnt financial, but more strategy so some I sold at cost prices however im lucky I haven't sold any at a significant loss.
The worst one was same buy and sell price which obviously means I lose stamp duty, agents fees etc

The interesting thing I found in my sell off was finding the cheaper (but still good agent), finding a cheaper cleaner didnt really factor that much as the final selling price negotiation was far more substantial.
Since my properties werent flying off the shelf , it was more trying not to push too hard!

 

That's well done ,at least you never lost anything once you take into accounts rentals returns ect and the experience gained ..good luck ..

 

How would you have invested in hindsight?

 

Be interested to know if the properties in the regional areas were above or below the median price for that town.
I don't think it's fair to assume that regional property automatically equals tenant problems but I do think the problems start when you drop below the median in basically any regional town. There's good and bad everywhere.

Willy

 

That's the million dollar question,
If i knew the Sydney and Melb boom were around the corner, I would have made 3 times the cg, had I bought there.

However thats hindsight,
Id do it again but I may not go so slum, as i was counting on getting in lower price point, higher % cg compared to surrounds or other suburbs, getting gentrification, game over I win

 

No, hos handyman now moved in and was living rent free, the crow bar guys are just letting him know they wont stand by and let the area get dragged down so low......handyman is moving out now.

 

WOW - well done !
Are you holding more -as in the properties you decided will be good investments?Or sold all out?-Just wondering if your getting out of property investing due to the trauma you felt with yr cheapies?!

 

Intention is to keep 12
will keep the ones i deem better or less headache, my rules arent 100% consistent though, ive kept one or two , that on paper is in quite a slum, and had I had heaps of tenant or agent trouble I would have sold them too, but they havent given me too much trouble, so I ill guess Ill keep them,

 

So what's the end game TMNT? Are you planning on living on the rents of the remaining ones?

 

I dont think I have a single property at or above the median!

 

Good question terry,
Once the sell off is complete, I haven't done the maths properly but at current rents, and lvrs, back of the napkin calculations is about $50k pa cashflow positive,
thats ignoring vacancies, so its not enough to retire on

thinking about going into commerical/shares

but in hindsight, had I bought blue chips, I would be in a much stronger position right now
might do a reno/flip or even development when the market turns around

 

At least now you would have a medium--long --term advantage over most ..

 

The amount of time I've spent dealing with insurance companies and incoming agents calls saying "it looks like your house has been abandoned"
I'd need some pay off!

Wait, credit card points... yay