The real data comes from the Land Titles office and the ATO. I believe the figures are lower than they should be as they do not take into account investors who use company and trust structures to hold property. I believe these are not counted in those figures.
The Mortgage Adviser
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Essential LinksI actually think it comes from a 1997 ABS study and may cover structures. If so, it’s horrendously out of date
Yes Quiggles that is an old number .
It would be good to get a more up to date number re ownership.
With the huge interest in the property market over the last few years you would think that the number of investors owning multiple properties would have increased.
It seems that there are many people on the forum who own more than five. Would be interesting to see how many on the forum own larger portfolios of say 15 to 20 or even more.
Or if people have owned portfolios of that size in the past how long did they hold before selling ??
Don & Liz,
Does the data extend beyond just the number owned to the median price of each prop ??
I’ve expressed my opinion on this forum before on this subject, but a chap who owns 20 props (little $50K units) with a 900K debt would qualify as having a large portfolio by the above criteria. In reality he has a rather small exposure to the market and an even smaller equity position.
His friend might have only 2 props, but owns each one outright and worth $10MM each. By the above criteria he’s a small fry and not worth looking at.
This is obviously skewed, but you get my drift…I know which one I’d rather be having a chat with.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Dazzling,
Good Point and that is exactly why I am interested in the subject. Our portfolio contains a mix of properties including some of the cheaper ones. I was interested to see if any investors would share how the types of properties they hold has changed over their investing career.
Our focus has been residential property with a buy renovate increase yield cap value strategy.
I read that you are doing commercial at the moment and have moved away from residential.Is it the general trend among investors to move away from property as their wealth increases or trade out of larger numbers of low value properties into different classes of real estate.
I wonder if anyone would share their experiences or plans.
Don & Liz (which one is it….you both can’t be typing ??),
Yes I suppose there is a general trend that the props get a bit more expensive as you move on…inflation obviously plays a small part here but generally the IP’s become a bit bigger which in turn hopefully attract a more financial competent and stable tenant.
Our most recent acquisitions are probably 12 or 13 times as big as the first few we purchased, so the factor does get cranked up a bit. This is deliberate, both from a better tenant standpoint, but also our group couldn’t think of anything worse than wet nursing 50 or so residential tenants and all their associated whinging. Much rather manage 1 or 2 large industrial tenants who just get on with their business.
In terms of plans, next move is commercial – hopefully some well placed CBD office block on the Terrace loaded to the gunnels with high flying tenants itching to fling gob loads of nett rent at us.
Hey – this is getting pretty serious for a “Forum Frolic” session….doncha think ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Yes Dazzling it does get a bit confusing. I (Don) probably spend the most time on the forum but Liz also makes a big contribution and spends alot of time reading and posting. Often we are on the forum together and discuss peoples views ans new ideas that we here about. We are very lucky as the investing is a geniune team effort. Yes it is all very pc around here!
We are investigating some small non ressy deals around areas of nz that we already invest in. The returns seem to be in the 15% plus range and it would be good to get some fixed term leases in the portfolio.
One question then enough of the serious stuff. Do you self manage the industrial tenants?
Cheers
Yep,
Once they are locked down with signed up 3 or 5 year leases, there really is not a lot to do.
All the hard work is in preparing the building, locating and negotiating the lease terms and conditions and finally getting them sign on the dotted line. Once you are at that stage, we see little benefit in palming it off to “managing agents”…the tenants simply go about their business and I always make a point of saying to them, as long as they pay the rent and all of our property expenses, they won’t hear or see us…and they shall be free to go about their business and make as much money as possible without interference from the Lessor. They seem to like hearing that.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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