I hope the following demonstrates a number of things to anyone contemplating entering into investment property.
In 1989 I purchased my first home a 2 bedroom 2 storey townhouse for $55 000 on a $10 000 deposit,the deposit acquired by hard work and sacrifice of a nice car and clothes etc.I continued to work as an electrician went to aussie for a year in 91 and then to Holland for 3 months in 95 with the plan to do the big O.E being based in England after Holland,my big O.E experience was a police escort back onto the boat to return to Holland - my crime was i said mistakenly i would be working at least 40 hours per week while living in England.
I soon returned to gods own at the age of 25 and this is when things started to "cook with gas"
I got a job with Otis the elevator company they were a great bunch of people but the whole concept of working for someone had not jelled with me for years,I reflected on what i had learnt in economics studies at school that if you want to retire from working for wages you have to build a net not fish with a pole as i was doing as a wage earner,could i use the pole to get the net i contemplated.
The block of 6 i invested in the other landlords did not want to spend any decent money for increased capital gains and rents,one of the flats had a burnt orange roof while the other 5 had a modern tan look 7.2 meters up in the air because one landlord did not want to chip in the $250 for the roof paint and stain,another and i were the working bee,to get out of this investment that had lots of potential but was going know where fast i had two choices selling mine with little capital gain for six or so years of investment or I'd have a go at acquiring the block i chose the latter maybe i could kill two birds with one stone and retire from it at some stage,lady luck would have to be on my side if she was not maybe she would be kind enough to allow me to be the majority in the could be improved body corperate,i purchased number 6 at auction for my 2 week prior offer of $72 000 number 5 was for $78 000 directly to a landlord,she was ecstatic on the phone i thought it was a low offer.
I was keen to acquire the front unit to have more control for perspective tenants coming along and seeing a nice cut lawn etc,i purchased it for $82 000.
A year went by for number 3 my pitch was "Wayne $82 000 dollars you will be able to buy yourself a clubsport ? The reply "Ive had one for 18 months" he sold it to me i think he saw a little of himself a few years back being young an hungry,a kool cat that was also the other grafter at the working bee.
One to go and I had a feeling with the last landlord there would be a duel of some sort and maybe not a deal this time around.I rung her $85 000 was my offer a generous one at that with regards to the better presented #1,she said to me she would sell it to me for that price if they sold another unit in the weekend they had across town,monday lunch time from work i rung her, she said "malcolm we did not sell the other unit that we were going to combine with the sale of the unit you want to buy an apartment in Sydney to be close to our daughter but you can have it for $89 000" I pondered over a cup of tea and thought im not going to let the whole deal fall over for the sake of $4000.
The last deal was done and i was free,i have not worked work for seven years in a compulsory role.There's my story i hope it shows the little time wealth can be created in,I have a conservative 1 mill in equity and will be freehold in 12 years and it has all come to being faster than i could have dreamed of.
As a wise old Scottish real estate agent said to me "Get in that river and swim with the fish" that's the main thing.
If anyone has any investments questions I may be able to help ?
In 1989 I purchased my first home a 2 bedroom 2 storey townhouse for $55 000 on a $10 000 deposit,the deposit acquired by hard work and sacrifice of a nice car and clothes etc.I continued to work as an electrician went to aussie for a year in 91 and then to Holland for 3 months in 95 with the plan to do the big O.E being based in England after Holland,my big O.E experience was a police escort back onto the boat to return to Holland - my crime was i said mistakenly i would be working at least 40 hours per week while living in England.
I soon returned to gods own at the age of 25 and this is when things started to "cook with gas"
I got a job with Otis the elevator company they were a great bunch of people but the whole concept of working for someone had not jelled with me for years,I reflected on what i had learnt in economics studies at school that if you want to retire from working for wages you have to build a net not fish with a pole as i was doing as a wage earner,could i use the pole to get the net i contemplated.
The block of 6 i invested in the other landlords did not want to spend any decent money for increased capital gains and rents,one of the flats had a burnt orange roof while the other 5 had a modern tan look 7.2 meters up in the air because one landlord did not want to chip in the $250 for the roof paint and stain,another and i were the working bee,to get out of this investment that had lots of potential but was going know where fast i had two choices selling mine with little capital gain for six or so years of investment or I'd have a go at acquiring the block i chose the latter maybe i could kill two birds with one stone and retire from it at some stage,lady luck would have to be on my side if she was not maybe she would be kind enough to allow me to be the majority in the could be improved body corperate,i purchased number 6 at auction for my 2 week prior offer of $72 000 number 5 was for $78 000 directly to a landlord,she was ecstatic on the phone i thought it was a low offer.
I was keen to acquire the front unit to have more control for perspective tenants coming along and seeing a nice cut lawn etc,i purchased it for $82 000.
A year went by for number 3 my pitch was "Wayne $82 000 dollars you will be able to buy yourself a clubsport ? The reply "Ive had one for 18 months" he sold it to me i think he saw a little of himself a few years back being young an hungry,a kool cat that was also the other grafter at the working bee.
One to go and I had a feeling with the last landlord there would be a duel of some sort and maybe not a deal this time around.I rung her $85 000 was my offer a generous one at that with regards to the better presented #1,she said to me she would sell it to me for that price if they sold another unit in the weekend they had across town,monday lunch time from work i rung her, she said "malcolm we did not sell the other unit that we were going to combine with the sale of the unit you want to buy an apartment in Sydney to be close to our daughter but you can have it for $89 000" I pondered over a cup of tea and thought im not going to let the whole deal fall over for the sake of $4000.
The last deal was done and i was free,i have not worked work for seven years in a compulsory role.There's my story i hope it shows the little time wealth can be created in,I have a conservative 1 mill in equity and will be freehold in 12 years and it has all come to being faster than i could have dreamed of.
As a wise old Scottish real estate agent said to me "Get in that river and swim with the fish" that's the main thing.
If anyone has any investments questions I may be able to help ?
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