Building a Property Portfolio Impervious to Market Forces....

Discussion in 'Investment Strategy' started by sash, 23rd Jun, 2015.

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  1. sash

    sash Well-Known Member

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    True only issue is i could not get it to fit the block. However this fits the downsizer market well.



     
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  2. Biz

    Biz Well-Known Member

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    You mentioned you build 3/2/2. What about if you substitute a garage for a bedroom in the design. From what i have seen in new estates over the years an extra garage doesn't add anywhere near the value what an extra bedroom does. No one pay extra rent for a double over a single garage either.
     
  3. sash

    sash Well-Known Member

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    1. In melb outer suburbs a double garage aggs more value. Too many people building 4x2x1 harder to rent and sell

     
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  4. Karina

    Karina Well-Known Member

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    Sash fantastic post, 8 digit portfolio....nice work....your investing strategy looks bullet proof to me.
     
  5. Fielding

    Fielding Well-Known Member

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    Nice work Sash
     
  6. sash

    sash Well-Known Member

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    Thanks Karina...just under at the moment...but will go over soon as the recent stuff settles or the construction loan draws down. ;)

    Thanks....
     
  7. stumpie

    stumpie Well-Known Member

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    hey Sash

    You da man dude! Every new investor should read this post before buying anything. Education and knowledge is the key to success. Well done and congrats it's a huge achievement.

    @Sim - is there a way to pin this?
     
  8. sash

    sash Well-Known Member

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    Thanks Stumpie!......it has not been all milk and honey....but worth it in the end......

    Nothing fancing....just boring research and but around the country...and wait for the cycle to take it to a new high.

    As I said before ...people overestimate what can be done in 1 year.....but underestimate what ten years can do to property. The other thing is to get a large a portfolio of quality properties as possible. Even 5% growth will be significant equity.

    For example a 5% CG on the following portfolio is as following:

    $1m portfolio = $50k
    $2m = $100k
    $5M = $250k
    $10m = $500k...now you are talking....

    Here is a thought .....lall you need is 5% growth consistently on a $10m portfolio for 3 years...and you have $1,5m in equity. Assuming 100k in living expenses technically you will have 15 years of living expenses by that level of growth....noice!!:D

     
  9. stumpie

    stumpie Well-Known Member

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    Sash

    I agree on your approach but you wrote in your very first post is something most 1st time investors will take time to understand. everyone wants a capital growth performing portfolio however what you mentioned in that 1st post is to also balance it out with a positive cash flow property which will help in holding cost. I believe property growth is about buying time over an average 10 year cycle and you'll made money while you sleep over this period. It's the holding cost strategy that one needs to nut out.
     
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  10. Mystery

    Mystery Member

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    Well done Sash, ..... You've worked hard and put a great amount of thought and effort into your strategy. Your self belief and determination has always shone through. Great effort.

    Mystery
     
  11. Steven Ryan

    Steven Ryan Well-Known Member

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    I want to see a portfolio exposé someday, sash. Maybe when you hit $10mil portfolio value you can reveal all and show everyone how it's done? ;)
     
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  12. sash

    sash Well-Known Member

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    Well spotted the ability to balance cf and cg is key very few people are that patient
    Thanks mate you too have done well i still remember you taking profit before brissie tanked.
    Happy to do that one on one in private not one to splash it on mags on pc. Happy to give details also. Nailed 1 purchase today. Some fantastic deals outside of Logan :D

     
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  13. Steven Ryan

    Steven Ryan Well-Known Member

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    We'll talk soon :)
     
  14. stumpie

    stumpie Well-Known Member

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    The Rasta has endless bullets… you keep firing.
     
  15. sash

    sash Well-Known Member

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    Went back and some buyers were angry it sold within 3 days listing poor agent copped ******. Found another which i just offered not even on the market!

     
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  16. sash

    sash Well-Known Member

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    Sure

     
  17. Hodge

    Hodge Well-Known Member

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    Good to see mr apra hasn't come knocking yet.
     
  18. C-mac

    C-mac Well-Known Member

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    Sash, phenonemal story mate, well done!

    I have just one question for you, if you don't mind. What is your land tax strategy? Assuming that even if your $10 mill of property value holdings is dispersed fairly evenly across the states and territories; if all of this is held in your own name, you must be getting pummelled by land tax in at least a couple of states, no?

    Or do you use trust structures per-state to avoid land tax. If so, you must have a number of trusts set up across the states. Is the expense of running all these trusts worth it, to mitigate land tax significantly?

    Land tax thresholds has always been my stumbling block. FYI and for context (this might help your answer for me) I have my entire $2.4mill portfolio in no trust structures, split across only two states, and I'm teetering on land tax thresholds as-is. Even though my 12-month buying strategy will be in a fresh state (state #3); within a couple years, I will likely start gettinf slapped with land tax in states #1 or #2 :/
     
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  19. sash

    sash Well-Known Member

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    Cost of doing business.

    My largest Land Tax bill is NSW over 10k......the others are well under $1k.

    Complex structures slow you down...and are costly to maintain...no thanks.

    Focus on the profit and how to grow rather than worry about expenses. Similar to managing a business....companies which just manage costs go nowhere!


     
  20. C-mac

    C-mac Well-Known Member

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    Great advice, I like your style. I've had a silver bullet thus far on things like LMI and vvscancy so a little land tax here and there wont hurt.