Hi all.I am starting in the property game, I am 22 years of age and am currently half way through my first small development to try and get a bit of capital in order to explore other avenues within property.I need a faster turn over and am very hands on.Who is the expert at Do ups in the $300-$400s range?I would love to hear from any persons in the auckland area (or those in other areas with a good simple system) Anyone free for a weekend coffie? or just got some time for questions via internet?Any feedback would be great.
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There is countless people on this forum who can help you or may offer advice.
Tell us what you plan etc and you will most likely get dozens of bits of advice.
piece together it all and find out which parts suit your personal situation.
Start off by giving a few bits of info
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At the moment I am subdividing a 800m2 property on the north shore mortagages sitting on $700,000, half way through this and due to start building a brand new home in one month time on the created vacant section. This is not enough for me, If I have time to party and be hung over I have enough time for a do up property. much more rewarding.As this is a timely project to see any financial benifits I am looking at purchasing a do up property.I am young and heaps of energy at this stage I do not want a rental. I figured I would start in the Te Atatu area this seems to be stable and middle of the road prices, I am in the process of picking a small area of 4 blocks and learning everything there is to know about people that live there and prices and what current buyers in that area are demanding. I have set a rule to purchase only 40% below market value or better. 3 bedroom homes, that have potential for capital gains. Cosmetic work to be completed only, dont want builders or any drainlaying and so on. Compounding interest funding only, as have little income. Was thinking of claiming GST on purchse to cover do up costs and initial purchase costs, rates, legal fees, valuations, insurances, petrol, time and so on. (is this recomended) How is everone else doing it? Ideas needed please.Last edited by mu1222; 23-08-2010, 01:24 PM.
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I had to use second tier lending and asked everyone I meet if they were prepared to invest in me and my ideas, after asking 100 or so people I found someone willing to put up 100k to get my foot in the door which I greatly appreciate, money is expensive when you dont have it.I would love to meet him if you could arrange that. The more people I can meet the beter, just looking for a bit of guidence in the right direction and some one to ask questions.Thank you.
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At 22 you have heaps of time.
Suggest you get the development under your belt before starting on the reno.
Be warned about subdividing and building, will take a lot longer and cost a lot more than you think.
The great unknown being the council and how they intend to put you thru the mixer.
You sound a lot smarter than me, but I got kaned in 1997 with a series of unfortunate events doing this exact same thing, its not one thing that will kill you but several.
For me it was....
1. Rising interest rates to 11%
2. Council and subdivision issues and additional expense
3. Unforseen major building expenses
4. Falling house prices
5. Falling rents
I got out of it with my sanity and sense of humour intact, but it was a close run thing.
Good luck.
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Yes I am being put through the mixer everyday but some how seem to love it, something new everyday, its exciting, I am expecting it to take time, but as I am not a handyman my self and cant build, I may as well spend my free time looking for the next deel so I am ready when this project finishes to take something else on.Cant believe the Council Fees! Charging persons time out at $75 for 0.25 of a part hour. thats a killer!
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Originally posted by mu1222 View PostWas thinking of claiming GST on purchse to cover do up costs and initial purchase costs, rates, legal fees, valuations, insurances, petrol, time and so on. (is this recomended) How is everone else doing it? Ideas needed please.
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Cheers egaleEyes will be having a chat about that aspect of it. I was more getting at, are people generaly using the claimed GST on the initial purchase to fund the costs of doing up the property or are they using that for mortagage repayments and deposit on another do up.
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