Wanting to get serious about investing

Hello Property Chat members,
I'm new today. I'm Sandi from Melbourne.

I've had a few investment and PPOR properties in my time, made some bad decisions and one ripper. I currently own (well the bank owns about a quarter) my own home in the inner north and a 2br apartment in Greensborough (same tenant for 6 years, but the estate - body corporate - is exorbitant).

I'm in the throes of starting the dual occ process on my block, which will result in me being in a lot of debt, renting for a year, demolishing my home (I'd rather move it to a block in the country and I am exploring that option too).

I went to Dymphna Boholt's seminar yesterday and whilst I didn't sign up, I did recognise the importance of educating myself. I've lived, slept and breathed real estate all my life - I just haven't done it strategically. Now that I've got a substantial equity in my home, it's time to start. But I have so many options and plans, it's all a bit overwhelming.

Anyway, looking forward to contributing to this forum and receiving all the help I've seen you provide to each other.

 

Not being cynical, but if you have lived and breathed it for so long why don't you have a portfolio to show? Equity in a PPR is what most have and they don't care for investing.

 

You haven't given enough information to comment but having an old old house on a nice block myself, I've personally found that unfortunately (or fortunately) old houses can have a lot of value in them. Not much market for selling them (not in my area anyway). So your options maybe to either kiss goodbye to hundreds of thou in value and demolish just to start from scratch and build your perfect home on your existing block, or move old house to another block and rent it or reno it.

My comnents are based on my situation. You have to do the numbers on which of these is viable for you or maybe post more detail for others to comment.

 

Welcome aboard, you have come to the right place. I am certain there is enough knowledge between the members here to help you along the way.

 

Hi Sandy, welcome to the forums

Congratulations on the equity in your home, that's definitely a win and you're not the only one here to have got where they are through a series of 'learning experiences'.

Regarding your home, demolishing it will instantly reduce the equity in it as a large part of the value is gone - make sure you get a valuation done to get an accurate assessment of land value.

Also, if you havent already, make sure you get your borrowing capacity checked to make sure you have enough to fund the project. There seems to be many people assuming it will be fine when the recent changes have made a real dent in people's borrowing power.

Good luck!

 

Well, thanks for the cynical welcome. I don't feel I need to defend myself on my very first post. I have bought and sold and kept some of 5 properties. I just never had the equity, cash flow or education to be able to change my situation. As a single mum of 2 kids, sometimes life gets in the way.

 

This is great advice, thanks Jess. I am in conversation with my broker about my borrowing capacity. I think I won't have the capacity to move the house to the country AND build two. But there's always the option to build one and sell the other with plans and permits in place (or wait and see if my circumstances change by the time the first one is built).

 

Well done on getting this far, most people don't get anywhere.

Personally I think the issue is probably direction. If I were you I would work out what your short. ,medium and long term investing goals are and then what strategies you feel comfortable with which suits your risk profile as well as your own financial situation. I always find having a clear direction and chosen strategies is a good foundation for then deciding what type of stock I need to purchase. Once you decide where you want to go and what strategies to use, go back over the reading materials which covers details relating to those strategies. Also discuss it with other successful investors on here and network with them during meet ups.

I am not sure where the Duel Occ fits into all this because it seems a little random with the info you've provided. To be honest the options above are all meaningless because we don't know the numbers attached to each and what the results may look like. Is it for manufacturing equity? Or cash flow? Have you done any feasibility? If development is the path you want to take then perhaps consolidate your position with your other properties and decide how development as a strategy/business fits into your goals and if it does then focus your time and efforts to learn as much as you can in this field moving forward.

Just my own take.

Cheers

 

Welcome @Sandiccc