Well instead of my normal 7.30pm bedtime it is nearly 10pm and I am blogging as I have been tripping around Bris-Vegas getting documents signed for our latest investment property purchase.
So when I set out to write this blog, I specifically wanted it to be more than just a 'mummy-blogger' generically and more about what I do as a 'stay-at-home' Mum.
I see my most important job is to teach my children how to have the character and values that I believe will help them in life to be happy and successful in whatever they do. In order for me to do that I need to role model everything. That is daunting most days and rarely achieved to my satisfaction.
However to be around for my children I have chosen to not work full-time or have a corporate job. My real job is on hold currently whilst I have baby # 4 (I work in leadership coaching). In the meantime I have taken it on to supplement my darling eduDaddy's work income with investment property income.
Some of you may not know how I achieve that. To cut a long story short, we use the equity in our home as deposit on other properties that have a high and reliable rental income. The rental income provides us with cash over and above the interest on the bank loan to fund our monthly lifestyle.
At some point in the future we will sell the properties, and we may make a capital gain. But we may not. The point of these properties is the monthly cashflow and annual tax savings we get.
Anything with high return is inherently higher risk. My job is to manage that risk. The risks include a) not having a tenant, b) the tenant not paying and c) the capital market value dropping below what we paid. I am therefore the property manager on the 4 (now 5 as of this Friday if settlement goes ahead) properties we own. All of the existing four are in regional towns associated to some degree with mining.
So property management involes A LOT OF paperwork, a lot of email and phone calls, liaising with solicitors, mortgage brokers, financial advisors, real estate agents, insurers, corporate tenant managers .... amongst others. But the most work is about managing the CASHFLOW - juggling when the interest charges and other costs come out and when we receive the money. For example end of month is interest payments, but often rent falls in the next week of the month, so we are completely strapped for cash often when our credit card is due .... and that is all my job to deal with.
Anyway that is the other side of Educating Mummy ... the making money side so that I can fund all my childrens' extra curricular activities and our holiday plans and T's gluten free diet and all the other extras that add up and up. However I wouldn't want it any other way at this time of my life.
Pictures of our latest purchase in Seven Hills. Should settle Friday if I can get all the paperwork and banking done in between T's cricket camp, packing for holiday to beach, visiting friends from Melbourne and being sans au pair for the week.....Labels: Property Investing, Stay at home mum
