- What is your primary investing strategy for 2016?
Hi all,
This thread is for discussion of this poll. Please submit your vote and your thoughts on why!
Benny
I’ve selected “Buy and Hold” for growth, but only in markets that have room for growth (eg Brisbane) – Sydney and Melbourne generally are excluded currently, but I am finding some distressed sellers in Sydney at the moment, so there may be opportunities. Particularly interested in Sydney if there are manufactured growth opportunities with distressed sellers, as it is my ‘backyard’.
I selected buy and hold for income, but I’ve been a little on the fence about this strategy being the ‘best’. I’m really in the early stages of what will hopefully be a property investing career, so I’m still deciding the best method. What I had planned to do was look to get a property I can positively gear through renting, I could then wait and hope for capital growth in the region on that property and eventually sell, but part of me thinks that I’d be better to purchase a property that has some potential to improve after holding the property for some time (not sure how long), I would then renovate and sell, so you get a property that makes you some money along the way, but also a reasonable amount of manufactured growth at the end. If any one has any thoughts on this particular strategy, I’d be happy to hear them!
Hi Lisa,
… part of me thinks that I’d be better to purchase a property that has some potential to improve ….
What a good thought !! For many, particularly in their early days of investing, a positive cashflow is desirable (even mandatory?). Without enough cashflow, we lack the stability to “weather the storms” that may eventuate.
On the flip side though, it takes a lot of purchasing and time passing to be able to retire from a “9-to-5 job” if the properties you hold have no/little Growth. So it really is a matter of balance between Income and Growth.
Some do it through careful selection, buying properties that begin with a positive Income, but can also have Growth “manufactured” (via a reno, subdivision, or by buying well). See this link for a really good example of that type of investing:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697977Or purchase a “cocktail” of properties – some positive geared, and others for mining Growth (perhaps even negative geared) such that the overall portfolio is neutral or positive geared (not costing you much to hold them all).
So, you see, “part of you” is right – yet so was the first part. :p
Benny
Thanks Benny , I chose buy and hold although I have a sub-division project in the pipeline for a property which is tipped slightly negative right now , I hope to gear them positive once complete. I am new here and so glad to see the wealth information around this site.
Hi AB,
Developing is a great way to build Equity. I haven’t done it myself, but, if younger, might have had a crack at it. I have attended a couple of developing seminars – they make a lot of sense. Good luck to you in your venture, AB,Benny
Hands on manufacturing sweat equity for me via renovation or develop. I need to raise more deposits so that I can buy more property.
For most of my interstate clients, its either the cash flow or lower entry point (or both) enticing them over here this year. Perth and Sydney don’t seem to be moving, Melbourne too expensive for some. Cheaper holding costs than Brisbane (insurance, council, strata all cheaper here).
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
…Value add with subdivision, capital gain with ripple effect outside of Sydney this yr.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I thought hoping wishing and praying would have a category all on it’s own!
Actually hoping to meet a few people interested in Vendor Finance in North Queensland. There were a few doing it up here before. If a few investors get together it could be a good strategy in the NQLD Market.
Adrian Cahill | AdrianCahill.com Personal Development Expert
http://adriancahill.com/from-investor-to-coach/
Email Me | Phone MeHere since 2002, however things have evolved over the years.
I believe diversification is the keyword this year.
Diversified portfolios through selecting more niche property, e.g. retirement homes or student accommodation, mitigate investment risks.
Investing in retirement homes provides secure revenue streams, particularly if they are located in key regions designed for middle-class pensioners and strong state social structures. Market research conducted by Knight Frank in the UK concluded that retirement homes with 60-79 beds were the most profitable. “Due diligence is crucial when dealing with retirement homes or any other real estate asset. It is always safer to deal with property covered by strict lease agreements and controlled by recognised intermediaries and experienced operators. Location and context are paramount, so for a good investment, study the demography, social environment, infrastructure, transport access, licensing and laws,” advises Anna Kurianovich, investment expert at Tranio.com.
Aging population is a challenge, but it is also a great investment opportunity (https://tranio.com/austria,united-kingdom,germany,usa/analytics/investments_in_retirement_homes_europe_usa_4745/).
The demand for higher standard of education is also set to grow everywhere in the world. So, I think student accommodation will make a great asset in the future.Rupert
http:\\www.tranio.comI have chosen to be on the sidelines for now.
I believe property values in general are sky high right now. When looking at long term trends and property value fundamentals I think it is not the time to be in too much debt.
Artificially low interest rates and international investors are keeping the property bubble from bursting for now but what will happen when interest rates start to climb and the government clamps down on international investors.
With signs of economic slowdown i.e China stockmarket crash and economic slowdown, low commodity prices, Australian stockmarket heading towards bear territory, also tightening of credit to investors, apartment oversupply.
Not to mention that real estate prices are out of reach for most first home buyers.
Forgive me for sounding extremely pessimistic toward investing in real estate, I would love to hear from some investors who feel the same way and also the ones who may think that I’m completely mad.Chuckeye
I’ve selected “Buy and Hold” for growth, but only in markets that have room for growth (eg Brisbane) – Sydney and Melbourne generally are excluded currently, but I am finding some distressed sellers in Sydney at the moment, so there may be opportunities. Particularly interested in Sydney if there are manufactured growth opportunities with distressed sellers, as it is my ‘backyard’.
Agree with you mostly.
I have just put another another property in Brisbane…this takes the total I have bought in the last 2 years in Brissie to now 5. The market has been steadily moving up.
I also see selective opportunities in Adelaide. As DT posted….there are quite a few Positive Cashflow options. I am mostly focusing on the better surburbs within say 12-13 klms of the CBD.
The Melbourne Outer suburbs are now going through the growth spurt..I reckon there is another 12-18 mths of growth till that also settles.
Sydney is definitely a “no-go” zone for me…..I feel that a lot of buyers are not buying on the fundamentals.
I have chosen to be on the sidelines for now.I believe property values in general are sky high right now. When looking at long term trends and property value fundamentals I think it is not the time to be in too much debt.Artificially low interest rates and international investors are keeping the property bubble from bursting for now but what will happen when interest rates start to climb and the government clamps down on international investors.With signs of economic slowdown i.e China stockmarket crash and economic slowdown, low commodity prices, Australian stockmarket heading towards bear territory, also tightening of credit to investors, apartment oversupply.Not to mention that real estate prices are out of reach for most first home buyers.Forgive me for sounding extremely pessimistic toward investing in real estate, I would love to hear from some investors who feel the same way and also the ones who may think that I’m completely mad.
ChuckeyeAgree with Chuckeye… too much headwinds, so I am simply observing the market (Brissie and Melbourne) until end of financial year and then decide what to do next.
Thanks,
Catts
Here to learn property investing, not trying to sell anything.Cattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
This year I’ll be taking on a new flavour of the reno-reval strategy (as I’ve outlined on our blog: http://www.precisionfunding.com.au/11366/)
Instead looking to do a commercial redevelopment, including facelifts and restructuring floorplans to be more conducive to businesses of today – which are very different than 20+ years ago.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hey @adriannqld,
I am new to PI but i have a unit in Townsville that i am looking to get creative with? what are some of your ideas? i am interested to talk.
I already have a decent sized property portfolio, I’m just sitting on it and reducing debt through cashflow. Outside of properties I have invested in a number of gold producers on the ASX, as I see gold as a good hedge against any further crises in financial markets and also against falls in property prices. However, I sold out of these positions last week because the profits I was sitting on were too good not to realise. I now want to get back in, but need a pull back or to find some different companies to the ones I was following and investing in. I still hold some exposure to the agriculture market, which I intend to increase slowly over time, this is a much more long term play and hasn’t made me any money yet.
I would like to buy property and hold for income. This is my investing strategy at present and in the near future. In my opinion , is is the best thing to do. Property is a good investment. You could either sell it or make it as a means of income especially if it is a commercial or a resort type.
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