Afternoon everybody,
First I would just like to say thank you to all of you who write posts on here as it makes for interesting reading!! and for a new investor it is good to see other peoples opinions on matters I had not even knew existed.
My question is that it comes up a lot in property investing magazines,books, forums etc that you need to have an investing plan/strategy, excuse how naive this may sound but isn’t the strategy to make money.
My personal situation is I have two IP at the moment thanks to the first home buyers grant, and then secondly the QLD building boost, the first is now being close to CF+ and the second only recently bought is negative geared, I understand that you have to have a balanced portfolio as cash flow can become an issue if too many of your properties are negative geared. So I suppose my plan is to purchase as many properties as I can without over leveraging and hopefully Capital Growth and rising rents will allow me to have a comfortable retirement which is still 35 odd years away.
So I suppose my question is – Is my plan worthwhile, or can I do things better or differently to allow for an earlier retirement, is it a plan at all..?
Thank you in advance
Hi Brokata
Firstly welcome to the forum and I hope you enjoy your time with us.
I think you strategy is bang on a certainly the way i build my portfolio of residential properties.
Drop me an email and I will send you a copy of the API interview i gave setting out my plan on building a portfolio to live off.As i say often your loan structure is so important as a poor loan structure with cross collateralised loans etc is the receipt for long term disaster.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Afternoon 007,
Streets ahead of you, have emailed and read your article – and congrats on how well you have done!!
Its funny reading sometimes though as some books I have read and investment magazines, seminars I have attended that there are so many ways of investing in property it can all become a little overwhelming at times at which way you should go, CF+, Neg Gear, Sub Divide etc etc, am starting to think that not one investor is alike to another 100% ,as situations, finance, work, home life etc all have to be taken into account when (and most likely a mistake) I TRY and compare my situation to there’s!!!
Thank you for the post, it is good to read that I may be on the right track with this
Yes, I agree with Richard (being a former Mortgage Broker) that the loan structures and foresight is the foundation of your portfolio and must be done correctly and suitably refined as you grow and/or adjust your goals and needs. You MUST have a proactive broker that is looking after you. Building great relationships is everything! you will find that when you find the right relationships, they will be happy to refer you to other experts that can look after you in allied professions, further providing you with the tools to create success in property.
Well done, with your research and initiative!
Hi Richard, can I also please see your interview, like Brokota, im trying to start a portfolio so I can eventually quick work (5-7 years) and live of the income from these IPs. Trying the find the best way is hard so any help would be great as im researching hard.
Cheers
DeanHi Brokota,
Given your stated goal is 35 yrs away this means you have plenty of time for your plan to be fulfilled. Quite simply the more time you have the more chance you have of succeeding.
Keeping an eye on both the growth and cashflow aspects of what you are doing and you should be fine.
You may wish to fine tune things a little after taking some baby steps. Initially keep doign what you are doing and then over time you may wish to expand your strategies through small scale developments, sub-divisions, renovations, land banking, vendor financing and so on.
Key thing is to get a general direction in mind (which you have done) and keep working your way towards the end point.
Along the way there will be times when 'nothing' seems to be happening. This is normal – stay focused and the end result will be exactly what you want.
dangermouse99 wrote:im trying to start a portfolio so I can eventually quick work (5-7 years) and live of the income from these IPs.
Dean
HI Dean,
That timeline is very ambitious – you may want to adjust your time frame a little.
Nothing wrong with what you want to achieve – might need to be a little more circumspect as you will need EVERYTHING to go right for you with such a short timeline.
Dean
you're going to have to work hard for those 5-7 years in order to achieve financial freedom within that time…i think its possible though… just curious, what's your plan so far?
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