You Can't Make Money in Western Sydney #2

Well, if I was going to go to this much trouble I'd want to be paid for it.

Day 1, 2, 3) Scrape the crud off of the floors that's superglued onto it, remove carpet & nails
Day 4, 5, 6,) Clean walls
Day 7, 8, 9, 10) Repair & patch walls & re-sheet where too far gone.

It would be a pretty boring documentary.

 

The magic of TV and those reno shows make it look soooo easy (provided that you have a full set of production crew, make up artist and none of your own capital on the line).

 

Well done - a text book example.

Be interested in the attendance at each of the auctions.

My observation is that FHB are not interested in a fixer upper.

 

I was the only bidder. That's the sort of auction I like.

 

Choose your prey carefully.

 

What about the sale - was that an auction ?

 

I look at it as hours it would take me as opposed to how long it would take a professional. If things add up to 3 weeks work for you but professionals can do it in a week you've lost 2 weeks rent. Sometimes it's better to pay. If you are working while doing a Reno it takes longer so you need to factor that in.
We typically did full house Reno's in 5 weeks while working. Doing most of the work ourselves. Pretty full on though.

 

Bummer you made $150k in 12 months

 

I think you might have ”overcooked the goose” a bit.

The gross gain was $96,336 and this is prior to CGT being paid. No 50% CGT discount can be applied as the purchase and sale occurred in 6 to 7 months (way less than 12 months) as stated by @skater:

Even this after tax figure is distorted as @skater did not charge the project for their time.

To get a true figure of how much money was truly made, we need to know how many hours the OP and her husband contributed to the project and reduce the after tax figure by this amount.

I am not saying that the OP didn’t make a profit but $150,000 is a huge exaggeration from where I sit.

 

Absolutely not!

 

Approx $75k each, added to our existing income, prior to tax.

 

About the same as our self funded pension but we don’t have to work NOR pay tax .

 

Mate money is money..........on some of mine I would have been up for GST even with that....I had enough depreciation to pay only 20k in tax.

I get that you pay no tax...but remember that is coming off your super.

My plan is to have no tax on super as well as very little tax on income from rents due to rents. I worked out I would pay about 10k per annum on an income of 200k. Depreciation if all goes to plan should be around the 90-100k mark due to new builds.

 

All good, as @sash said, there's a heap of depreciation to offset, and this is on top of the income that we earn without working.

 

Yeah, it is a bugger but the Government forced us to take 4% when we went into pension phase .

Soon our mandatory rate increase by 25% when it goes up to 5% .

Not really much of a bugger when our total return this year is 26% .

 

Yeah, our depreciation is causing us to accumulate tax losses. What a bummer!!!

I am thinking the wife and I might have to go back out to work so we can claw them back .

Either that or we reduce our debt, reduce our IP expenses, convert our portfolio to cashflow positive, ...

Ah, that sounds like a better approach .

 

You are giving your age away...you will be 65 soonish? It goes up to 14% of you get 95! See table below. The intend to spend all mine anyway....as for depreciation...as per your thread....you are not doing it right....my depreciation is being used to manage my CGT liability..as I sell down.....but the same time I am also increasing the number of newer properties I hold. These are things people with vested interests are not talking about.....

 

What is dhat for?

 

10M - my super fund balance