Hi all
I need some ideas or inspiration to move forward. I bought an IP 4 years ago and haven’t moved since.
Yes i have been still and am not sure which investment strategy i should use given the current market climate.
Current situation
PPOR
Val 305000….owe…85000IP
Val 310000….owe…248000 ….rent 400pwHave about 15yrs to retirement. Middle income earner.
Anyone thats been there would know at times of indecision a story or experience of someone else is all you need to fire up.
What would you do?
cheers
SGIf your goal is to buy and hold for 15 years you should be confident of seeing at least one cycle.
I have a similar goal and am buy and holding with the intention of CG for my old age.
I will lock in rises by upping my LOC and ignore falls.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Stargazer, try mapping out where you want to go & be in the next year, next 5 yrs etc until retirement. I always find by listing what it is I want to have achieved motivates me to get up & keep going. Be confident in yourself & know you have done this before & can do it again. Goodluck.
You sound a little down on yourself. Let emotion assist you in driving yourself forward, but don’t let it get involved in your decision making processes.
Always ACT on FACT!
Good luck!
Learn, Love, Strive. Make a difference!
Buzzwell, I’ve been reading all your posts tonight, You sound very positive and helpful.
Stargazer,
looks like you have some experience in property investing an have accumulated a bit of euity over the past few years.( the suburb you have purchased your IP in has not exploded like some but has shown some growth)
Good to see you putting your situation out there for people to examine. Did you do this to motivate yourself?
My advice is along the same lines as the others. You need to work out what you are trying to achieve and set some big goals.
I would suggest using leverage to get into a balanced property portfolio. Spread the risk around and focus on the management.
Cheers.
Hi people
Thanks for your responses.
Don and Liz could you elaborate a bit on your reply to spread the risk and concentrate on he management.
Yes it is to get motivated as i have been still this was because i had structured incorrectly and was bascially at the banks mercy at the time.
I have rectified this now so i am looking at which direction to take with the equity i have.
NG doesnt seem to be as attractive due to recent changes to tax thresholds/depreciation changes etc
So i am also trying to see what direction to take. PG property is predominantly rural.
Commercial property i dont know enough about and i beleive the leases are more involved and the risk is higher of vacancies.
Shares i don’t know alot about except straight out buy and hold long term blue chip type.
I feel i want to increase my cashflow rather than dipping in my pocket as i have been doing up til now for the IP.
At the same time if the cashflow improves then a better quality property and location would be considered.
Then of course things like asset protection come to mind and some say you should have a trust etc. So you have to weigh everything up.
I reckon i need a mentor to give me a push along but hey hard to find.
Cheers
SGHi Sg,
People say money follows management! Tenant selection, maintenance, maintenance programs, insurance, (landlords and building), finance (product selection) finance (debt reduction), record keeping and accounting, monitoring capital value and rental yields, meeting tenant needs to increase yields, exit strategies. You need to try and do everything you can to add value to and increase the yields .
Slection of professionals to be around you will be critical. Investigating and or creating the correct sturcture. Basically treat each property like a small business and be very business like in your approach.
We are in the process of examining our entire portfolio and doing detailed profiles containing everything you would ever need to know about each property. We have the indentified the potential of each property and out goals for it.
In 2003 we investigated and set up a structure in NZ. We did not buy our first property here until March 2004. We are currenlty holdinng 8 properties here without using any of our equity in our OZ portfolio. Each property stands alone so as prices rise so does the overall equity. So we have spread the risk around. We have two seperate portfolios both of which are postive cashflow ( if you excluded our former PPOR). The NZ and the OZ properties pay for themselves and are showing capital growth. Investing in this way has given us the freedom to leave our paid jobs. We still have the security to return if we need to but that option seems less likely all the time. However, we are still very busy investing and concentrating on the portfolio.
Plenty of people will advise you on your properties and many parties have an interest in your portfolio ie managers, the bank etc. However, you are the only one that has made a serious capital investment and have the most at stake.
Insist on the highest standards for your property in every area.
Good Luck.
Hi Don and Liz
Thankyou for your thoughtful comments.
People say money follows management! Tenant selection, maintenance, maintenance programs, insurance, (landlords and building), finance (product selection) finance (debt reduction), record keeping and accounting, monitoring capital value and rental yields, meeting tenant needs to increase yields, exit strategies. You need to try and do everything you can to add value to and increase the yields
Not sure what you mean here is do as much as you can yourself or Use the right people for the and make sure they do it professionally.
Slection of professionals to be around you will be critical. Investigating and or creating the correct sturcture. Basically treat each property like a small business and be very business like in your approach.
Yes great comment to look at each property like a small business.
We are in the process of examining our entire portfolio and doing detailed profiles containing everything you would ever need to know about each property. We have the indentified the potential of each property and out goals for it.
This is the area i guess i need to chalk up on i gather you mean research and analysis.Could you elaborate a bit more i find this interesting on how people evaluate.
In 2003 we investigated and set up a structure in NZ. We did not buy our first property here until March 2004. We are currenlty holdinng 8 properties here without using any of our equity in our OZ portfolio. Each property stands alone so as prices rise so does the overall equity. So we have spread the risk around.
You say each property stands alone so as the value rises each has its own extra equity for further investment i guess. How have you found this to work if for example you did not have enough equity in one but enough in say 2 or 3 properties together.We have two seperate portfolios both of which are postive cashflow ( if you excluded our former PPOR). The NZ and the OZ properties pay for themselves and are showing capital growth. Investing in this way has given us the freedom to leave our paid jobs. We still have the security to return if we need to but that option seems less likely all the time. However, we are still very busy investing and concentrating on the portfolio.
Well done Don and LizPlenty of people will advise you on your properties and many parties have an interest in your portfolio ie managers, the bank etc. However, you are the only one that has made a serious capital investment and have the most at stake.
Yes plenty have and some are good and some not so good.
Insist on the highest standards for your property in every area
Do you mean with maintenance, property management etcWhat have you found the best structure for what you have done?
Do you use trusts etc?
Cheers
SG
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