In Focus - Tracey Duke

Meet Tracey Duke a nursing director, mother of two and a woman with a can do attitude who went sailing with her partner and kids only days after signing the contract to buy her first investment property.

Inspiration Gained From Attending A Property Woman Workshop

In March 2007 Tracey attended the One Day Property Investment Workshop.  "Wow!  I left that workshop on cloud nine, I was going to be a property mogul!"

After searching for the right property at the right price Tracey and her partner finally found what they were looking for - a 3 bedroom, 1 bathroom property with a twist - the house could be easily converted to a 4 bedroom 2 bathroom property.

Tracey and her partner Steve put in an offer that was accepted on Good Friday 2007.

The problem was ... they hadn't organised any finance, solicitors, building inspectors or pest inspectors and were about to embark on a 10 day holiday on a house boat up the Sandy Straits (between the mainland and Fraser Island), with limited mobile phone reception.  

Sailing through the First Investment Property

Literally....

Off they headed on Easter Saturday up the Sandy Straits to enjoy the house boat they had hired.  "Had a hoot!  Swam, fished, ate, drank"...

However the reality of the situation started to sink in ..."In between this frivolity we realised the potential issues we had created." 

Finance was one of the main issues as although Tracey's partner was gainfully employed, Tracey had just started work and was on 6 months probation, which can hinder your chances of getting your finance approved.  "Thank God for the anaesthetic effects of that chardy!!"

Tracey discovered that occasionally mobile phone access was possible via the fly bridge and this is how she was able to get everything organised.  "It was messy, but it all came together after 2 extensions of settlement date".

Today the property has increased in value from $315,000 to $410,000 a 30% increase and the rent has followed suit.

It turned out to be all worth the effort for a $90,000 gain in equity.

Bit of Hard Work and Luck Create Magic

In December 2006 Tracey's partner purchased a rundown house on 20 acres at a mortgagee in possession auction with his business partner for $350,000.

After paying the deposit they discovered that the property was under flood level.  If only they had done some research..."research!! (the boys hadn't been to the property women's workshop)".

It was tough trying to find finance for the property, however eventually a broker came through.  "A broker eventually arranged a finance deal only after an expensive extension to settlement involving penalty interest."

After several unsuccessful attempts at selling the property, they cleaned up the property and recently have been offered $1.51m for the property by a developer.  "The developer is aware of the flood issues but needs the land for drainage and parkland."

Wow - turning an investment of $350,000 into $1.51m in only 2 years!  That really is magic!   "When the 20 acres settles I am going shopping - Gucci? Ralph? Chanel?  you say, well no.  I'm having fun and it has been short pain for lots of gain!!"

From the Beginning Patience and Negotiation Pays Off

In 2004, Tracey's partner Steve, moved from Western Australia to Brisbane 3 months ahead of Tracey and kids with their dog an Alaskan malamute, a dog needing lots of space.

Steve rented a place that would cater for the needs of the dog - space and fencing...however when Tracey arrived she discovered that the place was a dump and knew that they could not stay there for long.

Tracey, Steve and the kids did fall in love with the area, however, and as luck would have it a house came on the market only a few doors down from their rental.

The price for the house was $930,000, way out of the price range...so after months of negotiating...Tracey and Steve were able to reduce the price down to $610,000 a staggering $300,000 off the asking price.  This was due to the property being overpriced in the first place, not being well designed, having the wrong colours and in the end negotiating with a vendor who was motivated to get out of this property as he had invested elsewhere.

Since then Tracey and Steve have worked hard to turn this property into a dream home with a pool, 3 decks and additional living areas downstairs.

This property is now worth $900,000.

Tracey's Property Portfolio To Date

Property description	Purchase date (year)	Purchase price	Current estimated value	Weekly rent
Brighton (primary residence)	2004	$610,000	$900,000	n/a
House on 20 Acres 50% share with Steve's business partner	2006	$353,000	$1,510,000	$440
3 Bedroom House	2007	$315,000	$410,000	$320
Total		$1, 278,000	$2,820,000	$760

Tracey's Tips

• Just Go and Do It.
• Persistence and hard work pay off.
• Never listen to anyone telling you it cannot be done.
• Don't be the same as everyone else.
• You can do whatever you want to - if you want it enough.
• Plan - have short term and long term goals and work towards these goals - it's not just about luck it's about hard work and finding the opportunities.

To find out more about the Property Women's Workshop Tracey attended click here.

If you have any questions email Judith at judith@propertywomen.com.au or phone 1300 881 224.

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