Advice for a failing portfolio and a poor start

Sure did @sash
Wish i could have seen her face when i explained it to her though

 

Yeh he did. My only response was: Oh

 

Better tell @monalisa too

 

Yeh she is sitting across and has been enlightened

 

Sheesh! Keep it clean boys!

 

I hope you are feeling better @hotmail. It sounds like you were just having one of those days where you were feeling a bit down on yourself. You are doing GREAT! Really liked the suggestions of looking at getting a studio home built out the back of your properties to increase yield further. (If I am remembering the right thread!!)

 

hey hotmail. I'm also a socially inept awkward person - huge huge introvert. I think it's easy to get caught up with comparisons on this forum. I think you need to take a step back and look at how well you've done and what would have happened if you hadn't done anything or blown your savings on a round the world trip - let's face it, these were options to you as well, but you have manage to purchase and hold 5 IPs instead!!
Give yourself a pat on the back, I think you've done awesomely.
Try increasing the rents if they haven't been increased in the last year - especially for the sydney place

 

interested to know how these are going @hotmail

 

Oh.. haha I thought this entire thread was written in the last 2 weeks. Only when I read your post eskander did I realise it was a year ago

Would be good to get an update... should have done really well.

 

Just re-read this after someone sent me a like

I have noted that now that prices have settled the fly by nighter investors are losing interest. You can see this in the number showing up for meet-up...the old faithfuls still keep coming.

The other one I see...is people who have seen only one cycle...keep talking up Sydney...dangerous on my mind.

The other is some keep harping on about one area in Brisbane...another rookie error....you need to diversify..

And finally.....the longer you hold across multiple cycles...the lukier you get....slow and steady always wins the race. Well that has what has worked for me. In 15 years. if you start with 100k...you can convert this to $2-$5m.....but most people do not stick at it or not as focused.

 

It's unlikely many people get 7-9% in Year 1, or even in years 2,3,4 or 5.... If they say they did, they got exceptionally lucky or are full of BS. It takes time for yields to grow. Be patient. Your yields are very good for properties only recently purchased.

You have your finances structured inefficiently or you have bought properties with diddly depreciation if that's the outcome you are seeing, at 4% (ish) I/O rates available today . This is why people should stop talking about yields without context. Regarding the Macquarie bashing - at the time you purchased, Macquarie were one of the better lenders to use for borrowing capacity. You should be upset with APRA and ASIC for the gaolposts being moved, but your broker - just like everyone else- would not have known the extent of the regulatory interventions that followed. You certainly arent the only investor who has been caught unprepared or unaware by the changes. You however have a strong enough yield and a low enough LVR on several of your properties that you can still potentially move a few loans around using "actuals" and extract some additional funds and borrowing capacity

 

I doubt any sane person in australia let alone this forum would remotely say you have a bad or failing or risky portfolio! !!!!!!

Congratulations. 99% of the population would be green with envy

 

Y_man, there doesn't seem to be a WTF? button to press after reading this post, but I would have pressed it...

Edit: Didnt realise this was a year old thread until someone pointed it out. Still interested though....

 

How diversify do you suggest?
Multi types of properties in multi cities in muti countries?

 

Different asset classes

 

Across the larger cities in Australia.

Overseas...totally different market....

 

Wash your mouth out! I've bought plenty with over 7% yields.

 

which meetup?

 

Wenty Leagues Sydney....

 

pre tax or after tax?