Forum
»
Just made $190k in 15 minutes AMA (pic) (reps)
09-19-2020, 07:55 PM
-
#61
- FrankCostanza
- Serenity Now!
-
- FrankCostanza
- Serenity Now!
- Join Date: Sep 2019
- Posts: 17,091
- Rep Power: 48469
-
-
Originally Posted By r32gojirra⏩
so it didn't take 15 minutes, but rather months-years? k I mean good for you, but the whole process is what counts.True
190k isn’t bad for 15 mins work though
Inb4 misc ceos
Sold one of my properties at auction. Was all over from go to whoah in 15 mins.
190k isn’t bad for 15 mins work though
Inb4 misc ceos
Sold one of my properties at auction. Was all over from go to whoah in 15 mins.
I'm not here for rage. I'm here for revenge!
Anti Covid VAX Superhero
Mein power
Mein pleasure
Mein pain
Trump 2020
Trump 2024
09-19-2020, 07:57 PM
-
#62
- FrankCostanza
- Serenity Now!
-
- FrankCostanza
- Serenity Now!
- Join Date: Sep 2019
- Posts: 17,091
- Rep Power: 48469
-
-
Originally Posted By schambiann⏩
why is the world allowing Chinese pricks to own our shot 2hen we can't buy a single property over there per law?Why haven't the Chinese mogged your real estate like they've done in Canada? Srs.
I'm not here for rage. I'm here for revenge!
Anti Covid VAX Superhero
Mein power
Mein pleasure
Mein pain
Trump 2020
Trump 2024
09-19-2020, 08:03 PM
-
#63
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By FrankCostanza⏩
This is an urban myth started by bitter millenials it’s illegal for foreigners to buy already-built houses in Australiawhy is the world allowing Chinese pricks to own our shot 2hen we can't buy a single property over there per law?
Originally Posted By FrankCostanza⏩
Until the auction it was just an expense line-itemso it didn't take 15 minutes, but rather months-years? k I mean good for you, but the whole process is what counts.
15 minutes later it’s a current asset in my transaction acct
What part of that is difficult to understand?
09-19-2020, 08:12 PM
-
#64
09-19-2020, 08:13 PM
-
#65
- MillerDecaXC
- Registered User
-
- MillerDecaXC
- Registered User
- Join Date: Feb 2007
- Location: Pennsylvania, United States
- Age: 39
- Posts: 9,697
- Rep Power: 17283
-
-
Originally Posted By r32gojirra⏩
I was hoping you wouldnt say this...FUK!True
Sold one of my properties at auction. Was all over from go to whoah in 15 mins.
Sold one of my properties at auction. Was all over from go to whoah in 15 mins.
I have 6 houses and every single day im so tempted to sell them. Each one has around $70-100k+ in equity.
09-19-2020, 08:19 PM
-
#66
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By MillerDecaXC⏩
Do it man you never know what can happen on auction day we hit the reserve price on the second bid and then it started going up from thereI was hoping you wouldnt say this...FUK!
I have 6 houses and every single day im so tempted to sell them. Each one has around $70-100k+ in equity.
I have 6 houses and every single day im so tempted to sell them. Each one has around $70-100k+ in equity.
Then re-up in more profitable stuff that’s how I got started
09-19-2020, 08:43 PM
-
#67
- Miscbob
- Abortion survivor
-
- Miscbob
- Abortion survivor
- Join Date: Jul 2018
- Posts: 3,386
- Rep Power: 21619
-
-
Originally Posted By r32gojirra⏩
Where did they goof on the tax planning?Well to be fair this was our first outing of this scale and we learned a lot through making some very expensive mistakes.
I’m currently working on a much bigger development which will have much better tax planning, much less involvement from me at the design stage and much better regulatory compliance, all of which should speed it up and make it more profitable in the end and less of a headache for me
I’m currently working on a much bigger development which will have much better tax planning, much less involvement from me at the design stage and much better regulatory compliance, all of which should speed it up and make it more profitable in the end and less of a headache for me
09-19-2020, 08:44 PM
-
#68
Originally Posted By r32gojirra⏩
nice work, which area? sqm? when did you buy? how many units? time from DA to completion?-all in for around $2million. That is about $800k on the land, $1mil on construction and $300k in regulatory fees, design fees, property taxes and holding costs (interest) but some of those are instant tax write-offs. So a bit under $700k per townhouse.
-borrowed it from the bank
-massively depends on your other income but the effective tax rate can be between 25-47% for someone like me already earning in the top tax bracket for my “job”. I’ve already provisioned for tax so $190k is pure after-tax profit
-tossing up between
a) reinvesting in quality fixtures/finishes for my current project
b) lambo
^^^That doesn’t sound like a very profitable business model
Lol at thinking you can buy real estate in aus for $150k
It’s posted in the op, $190k free and clear after-tax profit
One down, 2 more to go, wish me luck
-borrowed it from the bank
-massively depends on your other income but the effective tax rate can be between 25-47% for someone like me already earning in the top tax bracket for my “job”. I’ve already provisioned for tax so $190k is pure after-tax profit
-tossing up between
a) reinvesting in quality fixtures/finishes for my current project
b) lambo
^^^That doesn’t sound like a very profitable business model
Lol at thinking you can buy real estate in aus for $150k
It’s posted in the op, $190k free and clear after-tax profit
One down, 2 more to go, wish me luck
if it was your PPOR, can you flip the lot tax free?
thoughts on the market in the next couple of years?
09-19-2020, 08:45 PM
-
#69
09-19-2020, 08:47 PM
-
#70
Originally Posted By Schnitzl⏩
that's probably because you don't have a lot of friendsWhy does everyone feel the need to boast about their income online? Nobody is impressed. I don't know any one of my high income friends showing off to strangers on the internet.
09-19-2020, 08:49 PM
-
#71
09-19-2020, 08:49 PM
-
#72
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By wiseass⏩
-inner city, 900m2 lot subdivided into 3 lots, around 113m2 living space each unitnice work, which area? sqm? when did you buy? how many units? time from DA to completion?
if it was your PPOR, can you flip the lot tax free?
thoughts on the market in the next couple of years?
if it was your PPOR, can you flip the lot tax free?
thoughts on the market in the next couple of years?
-DA was 18 months because we had one thing go wrong after another had to sack the first architect and I drew it myself. Construction was one year, rented for 1 year. Felt good to go from a massive liability to a tidy little profit
-This one wasn’t a ppor so I have made generous provision for (concessional) CGT. I picked the best unit in the complex to use as my PPOR so gains will be juicy when it comes time to sell that
-dunno about short term fluctuations on the market and don’t care. Over time it will go up. I’m not highly leveraged so patience is my friend.
09-19-2020, 09:42 PM
-
#73
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By Miscbob⏩
The question was whether, if we sold the units brand new having never been lived in, it would constitute a “taxable supply” for the purposes of GSTWhere did they goof on the tax planning?
We couldn’t get a definitive answer and I’m quite risk-averse in tax planning so we decided to rent it out for a year and avoid the risk altogether
There were some other issues about capex vs revenue but that was the main one
09-19-2020, 11:11 PM
-
#74
- NLNFunKti0nz
- Registered User
-
- NLNFunKti0nz
- Registered User
- Join Date: Oct 2010
- Age: 37
- Posts: 3,877
- Rep Power: 8433
-
-
Originally Posted By r32gojirra⏩
what kind of property?True
190k isn’t bad for 15 mins work though
Inb4 misc ceos
Sold one of my properties at auction. Was all over from go to whoah in 15 mins.
190k isn’t bad for 15 mins work though
Inb4 misc ceos
Sold one of my properties at auction. Was all over from go to whoah in 15 mins.
09-19-2020, 11:33 PM
-
#75
Originally Posted By r32gojirra⏩
Miring bet it took a lot longer than 15 minutes to redevelop though. Flipped a duplex and man that was way more work than I thought it was going to be and took longer than I thoughtNope
Redeveloped a single property into a townhouse complex
15 minutes is how long it takes to turn a liability into an asset
Redeveloped a single property into a townhouse complex
15 minutes is how long it takes to turn a liability into an asset
SuperHercules crew
cancer survivor crew
Dyslexic crew
Friend of Mr.Wilson crew
Ugly and old cell crew
Cat crew
Insomniac crew
09-19-2020, 11:48 PM
-
#76
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By NLNFunKti0nz⏩
Residential. Triplex townhomes (this was 1 sale out of 3 I’m hoping to close this FY)what kind of property?
Originally Posted By snailsrus⏩
Yeah I learned heaps along the way with this process, really looking forward to the next one, will probably be about $3.5 mil into it before we even see any positive numbers on the balance sheetMiring bet it took a lot longer than 15 minutes to redevelop though. Flipped a duplex and man that was way more work than I thought it was going to be and took longer than I thought
It’s weird when the whole thing is over in 15 minutes but it’s a great feeling to get rid of those brackets on the profit/loss statement
Did you do okay financially out of it?
09-19-2020, 11:53 PM
-
#77
- bigdownunder
- Registered User
-
- bigdownunder
- Registered User
- Join Date: Jun 2013
- Posts: 4,289
- Rep Power: 39883
-
-
Nice work mate.
Joint venture? Land costs sound too low otherwise, unless it’s not in Sydney?
What’s your estimated profit from the entire project? Enough to stop your day job and do this full-time, or do you still need the steady cashflow coming in?
Joint venture? Land costs sound too low otherwise, unless it’s not in Sydney?
What’s your estimated profit from the entire project? Enough to stop your day job and do this full-time, or do you still need the steady cashflow coming in?
09-19-2020, 11:57 PM
-
#78
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By bigdownunder⏩
^^^not in Sydney. That market is too volatile.Nice work mate.
Joint venture? Land costs sound too low otherwise, unless it’s not in Sydney?
What’s your estimated profit from the entire project? Enough to stop your day job and do this full-time, or do you still need the steady cashflow coming in?
Joint venture? Land costs sound too low otherwise, unless it’s not in Sydney?
What’s your estimated profit from the entire project? Enough to stop your day job and do this full-time, or do you still need the steady cashflow coming in?
I think if I can pull $600k after tax on the whole project that would be nice but the best unit of the 3 is my ppor so might do slightly better than that
Haven’t looked at the balance sheets lately but I think I sunk maybe $70-$100k of my own cash into this with the rest financed so not too bad of a return
As for the day job, well that’s the big question now isn’t it. If I hated what I do the answer would be easy but I love my job and get paid very well for relatively few hours so yeah it’s a tough one.
Also after a lot of trial and error we found a great finance guy, accountant, architect, builder, engineers and sales agent so this “Side hustle” is not a full time job by any means, probably 0-8 hours in any given week
09-20-2020, 12:06 AM
-
#79
Originally Posted By r32gojirra⏩
6 months of blood sweat and tears (did quite a bit of the work on my own and got a brokers license and acted as the general contractor and designer) after everything was said and done plus taxes 12k in 6 months on a 40k down payment and 15-16k improvements. Lived in the construction zone and had a tenant in one side for the majority of it which covered the mortgage. Learned a lot about the structure of buildings and for 23 years old not too shabbyResidential. Triplex townhomes (this was 1 sale out of 3 I’m hoping to close this FY)
Yeah I learned heaps along the way with this process, really looking forward to the next one, will probably be about $3.5 mil into it before we even see any positive numbers on the balance sheet
It’s weird when the whole thing is over in 15 minutes but it’s a great feeling to get rid of those brackets on the profit/loss statement
Did you do okay financially out of it?
Yeah I learned heaps along the way with this process, really looking forward to the next one, will probably be about $3.5 mil into it before we even see any positive numbers on the balance sheet
It’s weird when the whole thing is over in 15 minutes but it’s a great feeling to get rid of those brackets on the profit/loss statement
Did you do okay financially out of it?
SuperHercules crew
cancer survivor crew
Dyslexic crew
Friend of Mr.Wilson crew
Ugly and old cell crew
Cat crew
Insomniac crew
09-20-2020, 12:09 AM
-
#80
09-20-2020, 12:27 AM
-
#81
- keels141
- Registered User
-
- keels141
- Registered User
- Join Date: Mar 2008
- Location: Australia
- Age: 41
- Posts: 6,469
- Rep Power: 35966
-
-
Nice work m8, guaranteed the haters will come out of the woodwork when you post something like this. It's as if someone else's success diminishes their own; you guys need to develop an attitude of abundance.
I would have been a bit concerned through most of this year with the covid restrictions, some parts of the media were predicting 30% price falls in property. It must be a relief for you to get this converted into cash.
Are you going to put all your money into real estate for the next few years or invest some in shares? I currently have about 195k in cash earning 0%, I can see a 30%+ correction in the share market happening pretty soon (maybe 2% because some is in an offset account). The real estate market seems a lot safer, my borrowing capacity is non-existent right now though.
What was the tax plan then? Rent it out for a year and get the 12 month CGT discount, sell your property tax free under the main residence exemption and then sell the next one in the 2022 financial year?
If you are on the top marginal rate I would be tempted to take a year off work, and save a heap of money on tax.
Property development definitely increases the risk though, but it's good to see you got it over the line. Exciting times ahead for you brah
I would have been a bit concerned through most of this year with the covid restrictions, some parts of the media were predicting 30% price falls in property. It must be a relief for you to get this converted into cash.
Are you going to put all your money into real estate for the next few years or invest some in shares? I currently have about 195k in cash earning 0%, I can see a 30%+ correction in the share market happening pretty soon (maybe 2% because some is in an offset account). The real estate market seems a lot safer, my borrowing capacity is non-existent right now though.
What was the tax plan then? Rent it out for a year and get the 12 month CGT discount, sell your property tax free under the main residence exemption and then sell the next one in the 2022 financial year?
If you are on the top marginal rate I would be tempted to take a year off work, and save a heap of money on tax.
Property development definitely increases the risk though, but it's good to see you got it over the line. Exciting times ahead for you brah
***Trapped on prison island crew***
09-20-2020, 12:55 AM
-
#82
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By keels141⏩
-yeah the hate is realNice work m8, guaranteed the haters will come out of the woodwork when you post something like this. It's as if someone else's success diminishes their own; you guys need to develop an attitude of abundance.
I would have been a bit concerned through most of this year with the covid restrictions, some parts of the media were predicting 30% price falls in property. It must be a relief for you to get this converted into cash.
Are you going to put all your money into real estate for the next few years or invest some in shares? I currently have about 195k in cash earning 0%, I can see a 30%+ correction in the share market happening pretty soon (maybe 2% because some is in an offset account). The real estate market seems a lot safer, my borrowing capacity is non-existent right now though.
What was the tax plan then? Rent it out for a year and get the 12 month CGT discount, sell your property tax free under the main residence exemption and then sell the next one in the 2022 financial year?
If you are on the top marginal rate I would be tempted to take a year off work, and save a heap of money on tax.
Property development definitely increases the risk though, but it's good to see you got it over the line. Exciting times ahead for you brah
I would have been a bit concerned through most of this year with the covid restrictions, some parts of the media were predicting 30% price falls in property. It must be a relief for you to get this converted into cash.
Are you going to put all your money into real estate for the next few years or invest some in shares? I currently have about 195k in cash earning 0%, I can see a 30%+ correction in the share market happening pretty soon (maybe 2% because some is in an offset account). The real estate market seems a lot safer, my borrowing capacity is non-existent right now though.
What was the tax plan then? Rent it out for a year and get the 12 month CGT discount, sell your property tax free under the main residence exemption and then sell the next one in the 2022 financial year?
If you are on the top marginal rate I would be tempted to take a year off work, and save a heap of money on tax.
Property development definitely increases the risk though, but it's good to see you got it over the line. Exciting times ahead for you brah
-when I saw the Covid news my first thought was “fuark I gotta buy my next development site while the sentiment is down” - which I did and got a steal.
-I’m going to start selling some of my old rentals because they suck up too much time for the amount of money they generate. My end goal might be to have 4-5 paid off properties generating around $200kpa to live comfortably
-with my compulsory super I have a lot ($1m+) exposure to the share market already. I also have a defined benefit from my days in the Govt so I’m pretty diversified
-I have 1 year of full time paid leave including long service I can take 2 years at half pay and come to think of it that’s not a bad idea. Reps off r/c
09-20-2020, 01:01 AM
-
#83
- whitepaper
- Registered User
-
- whitepaper
- Registered User
- Join Date: Jun 2011
- Posts: 20,840
- Rep Power: 55720
-
-
What do you do for a living Op, aside from the side hustle?
2014 Misc Resolution: Negging no pics (screen captures of text don't count as pics)
HairyWBush Reps for life - Hamster Compassion: https://forum.obnoxiousbrutes.com/showthread.php?t=181804893
09-20-2020, 01:19 AM
-
#84
- OutdoorsBrah
- PhotoChopin' That Angus
-
- OutdoorsBrah
- PhotoChopin' That Angus
- Join Date: Mar 2014
- Posts: 10,527
- Rep Power: 182463
-
-
Congrats brah. repped
How much of that ~190K is profit after expense withholdings?
How much of that ~190K is profit after expense withholdings?
Outdoors brah is a purely fictitious persona. Any contextual or graphic creation, opinion, or post made by Outdoorsbrah is not a reflection of real life or reality in any manner, expressed nor implied.
*Photoshop / PhotoChop Crew*
*High Test Crew*
*Graphic Design Crew*
09-20-2020, 01:22 AM
-
#85
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By OutdoorsBrah⏩
$190k after tax profitCongrats brah. repped
How much of that ~190K is profit after expense withholdings?
How much of that ~190K is profit after expense withholdings?
I can withdraw that whole amount and spend it on hookers and nose candy and nobody can say anything about it.
But I won’t. Probably.
Always on rc wichya bratok
Originally Posted By whitepaper⏩
Audit and risk advisoryWhat do you do for a living Op, aside from the side hustle?
09-20-2020, 01:34 AM
-
#86
That's not really making $190k in 15 minutes. Unless you bought it for whatever $$$ and then 15 minutes later turned around and sold it for $190k plus on top of what you paid for it 15 minutes ago. Besides the length of time, you bought it. What was the profit over what you paid to own it?
No hate, just saying you spent time and money owning the property.
No hate, just saying you spent time and money owning the property.
☆☆☆USA �яєω☆☆☆
Not Casca Berserk. Casca The Eternal Soldier
☆☆☆Perfectly Imperfect �яєω☆☆☆
☆☆☆What is the point of doing a bunch of reps if every rep you do is CRAP? �яєω☆☆☆
☆☆☆SuperStraight �яєω☆☆☆
☆☆☆snailsrus �яєω☆☆☆
☆☆☆High Five �яєω☆☆☆
09-20-2020, 01:38 AM
-
#87
- Aristotelian
- Positive Mental Attitude
-
- Aristotelian
- Positive Mental Attitude
- Join Date: Jun 2017
- Posts: 12,849
- Rep Power: 263689
-
-
Good stuff, OP.
Was now a good time to sell? May be an obvious answer but any real estate market I am invested in is not a seller's market for sure.
And in some areas development costs are skyrocketing too - I'm still planning to convert some of my rentals into blocks.
Was now a good time to sell? May be an obvious answer but any real estate market I am invested in is not a seller's market for sure.
And in some areas development costs are skyrocketing too - I'm still planning to convert some of my rentals into blocks.
09-20-2020, 01:46 AM
-
#88
09-20-2020, 01:47 AM
-
#89
- ApeXXXPredator
- Banned
-
- ApeXXXPredator
- Banned
- Join Date: Aug 2019
- Age: 56
- Posts: 4,169
- Rep Power: 0
-
-
Good job selling your kangaroo house OP
09-20-2020, 01:49 AM
-
#90
- r32gojirra
- Registered NEET
-
- r32gojirra
- Registered NEET
- Join Date: Feb 2013
- Location: East Coast, Australia
- Posts: 39,513
- Subscribers: 6
- Rep Power: 594712
-
-
Originally Posted By kopikum⏩
Did my time as a lawyer, then an economist and most recently an auditor. Grinded a few years doing controls And compliance testing but now most of my fees are from sitting on committees and boards.how did you get the money to buy the property in the beggining?
every young guy who is into real state i know comes from rich daddy, entry price is just too big for normal people
every young guy who is into real state i know comes from rich daddy, entry price is just too big for normal people
That income was enough to get the money from the bank. Dream is to finance using my own funds.
Also I’m not young - age:40
Bookmarks
-
- Digg
-
- del.icio.us
-
- StumbleUpon
-
-
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts