Sold

Yeah, well...for those who've suffered my rubbish for many a year over at SS , you would all know the saga of the workshop and our financial predicament, and that we've recently had the PPoR on the market after a year or more of handwringing about what to do, whether to sell or not.

So, today sold the PPoR.

A sad day, but also a good day.

Sad, because due to a number of influencing factors we sold for less than what we wanted...the longer you hold out, the more interest you pay on existing loans which cuts into what you get, ultimately.

And the clincher was seeing a similar house (but better) came on the market just yesterday - for the same price as our latest offer which we received just two days ago. Didn't have as good a view, but when you compare the two houses; we really had to take the one in the hand instead of trying for the two in the bush.

Sad also, because we will not get enough out of this to buy even the most modest piece of crap 2x1 unit here in our suburb - we'll clear about $275k. We could borrow more I suppose, but I''m reluctant to pour more debt into another PPoR at this stage...would rather pour debt into investments.

So we still made a profit on the place, but if we were to look at this as an investment property - as a ROI since buying the land back in 05 and the build; not that good.

We will have to rent somewhere for the forseeable future - which gives me a feeling of failure for all we've tried to accomplish. I'm trying to look at this as a "one step back, 2 steps forward" situation, but jeez; finding that one hard.

Good, because for 3 years while the workshop has been sliding backwards, it has been enormously tough mentally and financially on both the wife and I to keep servicing debt, live like steptoes and do lots of pretending that things are OK to the friends and rellos...and now we have NO debt whatsoever. The feeling of relief is terrific. I feel as though we've won tattslotto in some strange way.

Good also, because now we will have funds freed up to promote and grow the business again, set up roadworthy business and more importantly - be able to easily pay bills and get a lifestyle back, even if the business stays the same as it is now, and still have an IP with no debt at all.

I can start to think about some more IP investing and start to accumulate more wealth again..

 

Chin up mate. At least you've now stopped the bleeding and can see light at the end of the tunnel. I'm sure you guys will build the empire back up from here.

 

You can do it Bayview...Never give up!

Tough times never last but tough people do!

 

Congratulation on the step forward Bayview. Better life quality after is a big plus.

 

That's excellent, glad to hear you got some good news.
Are you going to rent while you continue to invest?

 

Congrats Bayview. Having been through similar myself, I know the relief you must be feeling with the sale and how money worries about how to pay the mortgage disappears.

 

Thankyou everyone for those kind words.

I hope this thread gives others some insight into how things can go, and what can be done/expected from it.

 

Well done,with all this experience you have now you go in one end come out the other and inbetween you learn about the "Robin-Hood" policy of investing..

 

I know exactly that feeling. The relief! The joy! But also the sadness!

It's all up from here though!

 

Hi BV
Onwards and upwards.
Have a question for you with regards to a new primary residence, is there any chance of buying land, small block where you can eventually build.

I don't know your area/suburb, but perhaps this in part gives you the opportunity to build and perhaps save money doing it this way? Is this a viable option. Land and house builds can be a cheap way to go, if money not already earmarked and if possible of course.

Cheers
MTR

 

We got rid of our albatross IP late last year; it was a feeling of sadness, at "locking in" that loss and losing what we'd planned to be our retirement asset, but I have to say it's been outweighed by the relief.

Enjoy the load being off your shoulders, and best wishes building up the business.

Onward and upward!

 

Yes, we are going to start looking for somewhere to rent tomorrow.

We will have approx $275k to invest immediately, as well as the equity in our IP - approx $170k.

I still like the idea of buying more businesses, and have had a massive and expensive learning curve from buying the current one.

I like the idea of businesses for cashflow, and then use the cashflow to buy realestate and/or do development projects with the funds.

I'm done with buying IP's and seeing CG occur, but still have no cash. We got to 5 IP's and were still as broke as ever when we had them, and then had to sell them over time, so no thanks.

If I can get a business/es to fund it while I still take an income from the business which is not needing to be used to fund the IP's and/or dev projects, then that would be a good strategy.

I do have a contact for some development project work, which will require a cash input and become a passive equity partner, and then sell on completion. The initial funds plus profit then get returned and we go again. This person has already been doing it, but we have not been able to access funds to go into a JV.

It is relatively low risk, and will not require a large chunk of our cash from the PPoR sale; so not all the capital will be exposed.

 

We wouldn't get much of a block for that money ($275k), and there's no income from it.

I'm tired of being asset rich and cashflow nothing.

Having had 5 PPoR's and now sold them all; I have no emotional link to the Aussie dream of the McMansion. I still want one, but I've been there and done it and didn't totally get to enjoy the experience due to lack of cashflow.

Something nice, but more modest, and with a pool for the kids - will do us fine, and work on getting the income up into the multiple 6 figures!! That's where the real fun is.

I could use the equity in the land for investing and sit on it for the CG it might get, but then we have more borrowed funds which will massively eat into the nett cashflow of the next investment.

The Wife and I have discussed what to do regarding a PPoR. We are both reluctant to buy anything that requires any sort of non-deductible loan - in the short term - my head is totally about income producing debt now, and use the proceeds from that to fund the next PPoR.

We are happy to rent for now, and use the cash we get to purchase something that will continue to provide income now - and indefinitely - and maybe buy another PPoR in the coming years; especially if the market goes off the boil again.

I'm 54 years old now, so don't relish the idea of having a PPoR debt noose around my neck well into retirement which will impede our lifestyle. We have the workshop and the IP now - both will be totally debt free, so there's more than enough income from those two to live off (without even considering what my wife could earn through her job.

My only interest in going down the PPoR path again straight away, is to buy a doer-upper which we can do a substantial reno and/or subdiv with, then then sell.. sorta the worst house in the best street type strategy, but to do that in our area would require a decent loan amount to begin with, and no income from it for quite a while.

 

Congratulations Bayview on taking decisive action. I hope all goes well for you after some difficult times.
Marg

 

I'm relieved and pleased, and just a bit disappointed for you - I know how much of everything you put into that house. Good on you for making a really tough decision.

 

Actually I think that is a good plan, if you can get the right property, such as a corner lot which is subdividable, sell off the land or fix the house sell it off, cut up land perhaps sell as well. If figures stack just keep doing something like this, pick the right area with enough fat and could be a very good way to keep making money.

I am just thinking out loud, also, would you really want another business considering the stress you have already endured, not to mention current economic client?

MTR

 

@Bayview

Congratulations! hopefully, it will be easy on from here

i always have great respect for ppl who have turned around ships and have done well.

be it @DaveM or @MTR or you!

great lesson to learn and very inspirational.

 

Thanx

 

Absolutely.

Businesses get bought and sold every day of the week even now.

But, I now have the benefit of hindsight and experience, so I know what to do with the next one.

I can even pay cash for the next one, so no impact on the cashflow from loans.

There is another tyre/mechanical business for sale not far from us..have been following it for some time and still for sale...

To have another, or maybe 3 or 4 of them will substantially increase the buying power etc - but buying them at the right price and with the right conditions is paramount.

 

Good on you for making the tough decisions.

You sound like you have the right motivation, mindset and some capital - very excited to see what you can make of it.

Whether it is with the workshop or something else I think you are going to be OK.

You should have a real crack - there are still some safety nets if it doesn't work out.

Hope you get a chance to relax and enjoy youself before you go again.