So the next idea to further our cause was bricks and mortar. After the GFC the property market in Perth was in a slump for a long time and we took advantage of this to buy a cheap, but run down house. Having a sizeable deposit from all our hard work made getting an investment mortgage and buying the house easy and with a quick spruce up the house was rented out and bringing in some extra $$$$.
Our hopes were also that the market would pick up again and we could sell the house with a good chunk of profit, but sadly to date with the exception of a few peaks and then troughs this has not really happened. What has happened though is that the rent has been paying off the mortgage, so over the years the equity has been building increasing our nest egg.
We were still not moving towards our goal fast enough for my liking, so out on a limb again we decided to buy another house to live in, whilst renting out our current house – Keep piling on those mortgages 🙁 We found a beautiful house up in the hills of Perth on 6500Sqm surrounded by 100 year old trees, we fell in love and snapped it up for a bit of a steal as the market had taken another dive and the owner had already purchased another house and was desperate to sell.
The good thing was that we now had three houses and two rental incomes which were going a good way to covering all the mortgages. After a couple of serene years living in the hills, it was time to accelerate towards our goal and the perfect opportunity came up. The local council for one of our homes changed the sub-division property laws, meaning in simplistic terms that we were now able to sub-divide our property into two blocks, keeping the current house on the front block and building a new house on our back garden or now block number 2.
You cant rent a house out, whilst turning the back garden into a building site, so it was time to move out of our hills house and back into our old home whilst we built. The good thing was that the House in the Hills got a premium on rent, so we were $ ahead, but now back living in a smaller house, which was to become a building site. The plan was to build a new 3 Bedroom house and move into it when built and sell the house on the front of the block.
Well as they say, the best laid plans of mice and men often go awry, which is exactly what happened with daughter number 3 popping into our world. The problem here was that we were building a 3 Bedroom home to move into and now needed 4 bedrooms, so it became apparent we could not move into the beautiful new home we were building, but would have to sell it instead and stay in the 4 Bedroom house at the front.
The whole process of subdivision approval, planning permission and building the house through to selling it was well over 2 years in which time the market peaked and then dropped back again, but fortunately we managed to sell the new house just before the market really tanked and although we didn’t make as much as we had planned, we were lucky to sell when we did.
So now its on with the monotony of the treadmill and lots more work to keep the $$$$ rolling in and move us towards our eventual goal of sailing away, though we now are significantly closer to achieving our dreams.