Here is our budget / weekly breakdown. We live in Perth.
DH earns around $67,000 per year after tax (self employed so pays his own tax) which works out to be $1300 per week clear.
Rent - $305
Business car loan - $185
All bills - $350
Groceries - $150
Takeaway & ent - $70
Fuel - $140
Xmas - $100
With our bills, everything is setup on direct debit to come out of our credit card. Each week we put aside $350 per week into a separate savings account to pay onto the bills credit card each month. Which brings the balance back to zero.
With the $100 we put away into our xmas account each week, this is for payments over the xmas period as my hubby is self employed and doesn't get paid. This allows us to take 4 weeks off and still having money to cover our weekly expenses.
I also work atm, and bring in between $500-$720 per week depending on my hours. This goes into savings and/or goes to paying off our credit cards. That way when we do drop to 1 income we have already trialled it to see it we can do it.
DP is on 90k this year which is a lot less than usual he broke his hand and had 3 months off work. We have 2 kids and TTC baby number 3 . We have one in nappies still. With 2 kids . Rent $400 $200 groceries a week. Credit card bill , car , petrol and mobile phones we still manage to have 450 left over a week. In saying that DP job can be in predicable and he can lose hrs quickly. He is in a permanent causal position.
I bought a cheap run down house in the Central coast 10 years ago, and a short time later my awful tenants started a fire in the house which required a complete gut out - insurance practically rebuilt the house and I sold it for a decent profit. Used that $ for a deposit on the house we live in now, which we got for a bargain. It's a very basic house but it's almost doubled in value in 5 years.
Before my house burned down, my husband (then, my fiancé) and I bought a small apartment in Bondi beach. We lived there for a while but went on a holiday overseas and decided to rent it as a furnished holiday rental while we were away. We made such good $ from doing that, that we decided to move into my dad's house (post-divorce, with only my sister living there) and rent our place out as a holiday apartment full time.
We used the profit from that "business" to buy another apartment in the same building one year later (totally random, but we bumped into our neighbour in a cafe and she was telling us she was thinking of selling her apartment - we offered her $ before it even went on the market and she gave us a discount because she was able to avoid marketing and agent commission costs). Then we decided to try and buy more apartments in the same building because it seemed to be a winning formula - found another owner wanting to sell; his place was an absolute dump. We had to gut it out and renovate but now we have 3 lovely units in the same building, and another in a nearby building. All of them were holiday units but now they are long term furnished rentals (we had too many complaints from neighbours, even though we only ever rented to non-rowdy travellers).
So that's our story - like I said, lots of luck, but also we had a good business model and we reinvested all our profits.
@witherwings - that is really impressive!
I wanted to buy an investment in my hometown in Canada for ages, but could never seem to find the right place, at the right time. Sadly, the market has boomed and I missed out.
However, we are moving there next year and our current home will become a rental while we are overseas - so there may be hope for me to build my RE empire.
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