People are investing in real estate for dozens of different reasons. The main goal is usually to make a profit, of course, but sometimes, somewhere, real estate can offer life lessons of a totally different kind …
For example, in the event of a disaster, your goals and your real estate plan may become insignificant. Who cares about returns and value creation through renovations, when there are real health problems to be feared, is not it?
This was exactly the situation in which Sara and Heath Crawford met a few years ago when their baby Piper fell suddenly and seriously ill. About 10 years after being a real estate investor, Sara and her husband were devastated by the diagnosis of a rare and potentially fatal form of epilepsy for their granddaughter.
Sara has not been back to work since the day Piper was taken to an ambulance – and, thanks to the sale of a profitable real estate investment, the family did not experience any additional financial stress.
In 2016, Sara, her husband Heath and their children enjoyed the benefits of having two steady salaries to support their household. Sara had recently returned to work after her maternity leave after the birth of their third child.
"Like many families, we had saved and budgeted a reserve of money to keep our head out of the water, while I focused on the education of our three children, not alive than my husband's salary, "she says.
"We waited to spend the last of our savings before I went back to work. But just three months after my return to work, our youngest daughter became seriously ill and was diagnosed with a serious and long diagnosis. I have not worked a day since she was first taken into an ambulance and taking care of a sick child has become our reality. "
Fortunately, their real estate strategy was investing in homes that would have no impact on their household's cash flow. A large number of calculations have been made in advance. This led them to purchase their first double-occupancy property in Broadmeadows, Victoria. With a main house and two dilapidated bungalows in the yard, the couple renovated the spaces and offered them for rent. This resulted in an instant positive cash flow of $ 350 per week.
"This approach has been widely criticized. Investors at the time were convinced that it was impossible to obtain a positive cash flow in a capital growth zone. almost double its purchase price, "says Sara.
"This experience showed us how much we were relieved to have chosen to invest in real estate because from then on we started using the positive cash flow we were earning for to increase my husband's wages. What a gift it was not to have eyeshadow and not to say that I do not need to work because my priority in caring for our youngest full time child is not to say that I do not need to work, because was not negotiable. "
After recently cutting their wallet, the couple recently bought the family home of their dreams: a 17-acre parcel of land with a home on which it has just completed a deep aesthetic renovation, injecting equity into it immediate.
Sara admits though that it would be "ridiculous not to replicate our previous success in the field of property".
"Our method will most likely remain the same, with the focus being on positive income or renovation for profit," she says. "But for now, we're just going to take advantage of what we've already accomplished and take a break to enjoy our family."
Read the full article featuring Sara Crawford and three other investors who have suffered the upsetting impact of real estate investing, in the December 2018 edition of Your Investment Property magazine , on sale at Coles news agencies and supermarkets until December 5, or download the magazine now.
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