Hi all,
a quick run down on my background so you have some context: when I was 22 (8 yrs ago) my partner and I bought a house in Hamilton, spent 18 months doing it up with $30k and sold it on to make $100k pure profit. We got cocky, bought another do up, this time in a crappy area, AND quit our jobs and started a couple of ok businesses. Planned to do up and sell in quick time. Took ages to do it up (18 months), and then rented it out while we went on our OE for a year. Came back, kept it rented out (cash flow positive) and rented in a nicer neighborhood Started a business, got married, got pregnant, moved back into crappy neighbourhood house to redo and sell. A year on, we are still in the house, my son is 7 months old, we are struggling financially (family is supported by business, which is not quite making enough), we spent all our equity on OE+wedding+business+baby and we now also have credit card debt. Yep, feeling pretty foolish. Altho blissfully married and totally in love with my baby, this is not the life I envisioned for us.
So what now? We are still stuck in crappy neighbourhood and house wont sell at the price we could afford to sell it for. We are dropping the price to what we bought it for this weekend, desperately trying to sell. In the meantime, my Dad is a mortgage broker and has offered to come up with the funds for a do up via the investors he has on his books. So basically, I've been told "go and find a property, cost it out and come back to me with something that will return at least 20% more than what it costs". What an opportunity!!! The problem is, I've been out of the property game for so long that I dont even know how to spot a bargain. How to know what something will sell for??? We own a handyman business so my hubby can price up some of the rennovations although we will have to get quotes from other builders as well cos hubby wont be doing all of it. We are damn good at rennovating and adding value, but considering our situation I'm not about to do anything stupid (I know, you are thinking too late for that!). Part of me is terrified of doing something like this as over the past 8 yrs we have gotten more and more strapped for cash and have gotten lost in the rat race, so my mentality is not where it needs to be. Deep down inside me I'm thinking "feel the fear and do it anyway".
So can anyone offer me advice? We are still living in Hamilton, and we really need to take an opportunity like this, but every property I look at I'm thinking "how the heck do I know if I can make a profit on this??".
Thanks so much in advance,
Sarah.
a quick run down on my background so you have some context: when I was 22 (8 yrs ago) my partner and I bought a house in Hamilton, spent 18 months doing it up with $30k and sold it on to make $100k pure profit. We got cocky, bought another do up, this time in a crappy area, AND quit our jobs and started a couple of ok businesses. Planned to do up and sell in quick time. Took ages to do it up (18 months), and then rented it out while we went on our OE for a year. Came back, kept it rented out (cash flow positive) and rented in a nicer neighborhood Started a business, got married, got pregnant, moved back into crappy neighbourhood house to redo and sell. A year on, we are still in the house, my son is 7 months old, we are struggling financially (family is supported by business, which is not quite making enough), we spent all our equity on OE+wedding+business+baby and we now also have credit card debt. Yep, feeling pretty foolish. Altho blissfully married and totally in love with my baby, this is not the life I envisioned for us.
So what now? We are still stuck in crappy neighbourhood and house wont sell at the price we could afford to sell it for. We are dropping the price to what we bought it for this weekend, desperately trying to sell. In the meantime, my Dad is a mortgage broker and has offered to come up with the funds for a do up via the investors he has on his books. So basically, I've been told "go and find a property, cost it out and come back to me with something that will return at least 20% more than what it costs". What an opportunity!!! The problem is, I've been out of the property game for so long that I dont even know how to spot a bargain. How to know what something will sell for??? We own a handyman business so my hubby can price up some of the rennovations although we will have to get quotes from other builders as well cos hubby wont be doing all of it. We are damn good at rennovating and adding value, but considering our situation I'm not about to do anything stupid (I know, you are thinking too late for that!). Part of me is terrified of doing something like this as over the past 8 yrs we have gotten more and more strapped for cash and have gotten lost in the rat race, so my mentality is not where it needs to be. Deep down inside me I'm thinking "feel the fear and do it anyway".
So can anyone offer me advice? We are still living in Hamilton, and we really need to take an opportunity like this, but every property I look at I'm thinking "how the heck do I know if I can make a profit on this??".
Thanks so much in advance,
Sarah.
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