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

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

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  1. ross100

    ross100 Well-Known Member

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    Sash
    do you use volume builder or Architect built for your IPs in MEL
     
    ross100, 17th Dec, 2015
    #141
  2. melbournian

    melbournian Well-Known Member

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    @ross100 you would use an architect for sub-div, dual occupancy, possibly extension etc. However it also depends on your location. One would have to use quality architect if building in brighton, camberwell etc. but if in west like pt cook, stick to volume builders. Volume builders have pre plans and they will be able to tell you yes/no if it will work on your block.
     
    melbournian, 17th Dec, 2015
    #142
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  3. sash

    sash Well-Known Member

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    I use volume builders....
     
    sash, 18th Dec, 2015
    #143
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  4. sash

    sash Well-Known Member

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    Yes....but I am in no rush to retire yet...still under 50....
     
    sash, 18th Dec, 2015
    #144
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  5. bez23

    bez23 Well-Known Member

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    nice. I in sydney now so a bit of a late notice but let me know when you come to Adelaide. Plenty to learn from you!
     
    bez23, 19th Dec, 2015
    #145
  6. Tranquilo

    Tranquilo Well-Known Member

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    Im waiting for Sash to write a book lol :D
     
    Tranquilo, 19th Dec, 2015
    #146
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  7. trinity168

    trinity168 Well-Known Member

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    And why retire when you enjoy what you are doing ...
     
    trinity168, 19th Dec, 2015
    #147
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  8. Mr Dabolina

    Mr Dabolina Well-Known Member

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    Yep - I am not a fan.
     
    Mr Dabolina, 27th Dec, 2015
    #148
  9. Observer

    Observer Well-Known Member

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    Hi @sash. I was wondering if you could share how your finance/borrowing capacity works when you keep money in the offsets instead of paying down the principal? E.g. say you've constructed a H&L for $300k. With the positive cashflow and depreciation you've managed to put $100k in the offset after some time. From bank/serviceability perspective does the bank still see it as $200k or $300k debt?

    I thought that of the two scenarios (e.g. money in offset vs money used to pay principal) only the latter actually improves your borrowing capacity?
     
    Observer, 19th Jan, 2016
    #149
  10. D.T.

    D.T. Specialist Property Manager Business Member

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    That's true, but he said earlier he uses low LVR to begin with
     
    D.T., 19th Jan, 2016
    #150
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  11. sash

    sash Well-Known Member

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    Still 300k in debt.

    But when you have a few...the Senior credit guys will see through what you are doing. So long as you service they will lend. The service rate has exceptions. RAMS is one of the most flexible on this basis.
     
    sash, 19th Jan, 2016
    #151
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  12. Observer

    Observer Well-Known Member

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    Thanks @sash! So basically it's an exception some credit guys can make providing they see the pattern.
     
    Observer, 20th Jan, 2016
    #152
  13. Cactus

    Cactus Well-Known Member

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    Do you spread the love, dependent on offers at the time or stick with one or two... I'd love to hear your experiences with them (PM if not appropriate for forum).

    I am about to start 2 builds with Simonds, and will be building another 2 with either Simonds or Metricon and 1 with undecided in June/July.
     
    Cactus, 20th Jan, 2016
    #153
  14. sash

    sash Well-Known Member

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    Currently going with Burbank and also testing with Dennis family..so yes.
     
    sash, 20th Jan, 2016
    #154
  15. Observer

    Observer Well-Known Member

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    @sash did you consider getting bigger blocks of land for your H&L with the perspective of granny flats construction to boost the yields?
     
    Observer, 22nd Jan, 2016
    #155
  16. sash

    sash Well-Known Member

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    Nope....I can't myself getting my money back on that construction side...though the CF will be excellent.
     
    sash, 22nd Jan, 2016
    #156
  17. Magnet

    Magnet Well-Known Member

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    @sash how much of your portfolio do you intend to lock into a fix rate? and for how long? Will this affect your ability to increase your portfolio in any way?
     
    Magnet, 20th Mar, 2016
    #157
  18. euro73

    euro73 Well-Known Member Business Member

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    Nothing available in either place...NRAS allows a 10+ year view...so Perth
     
    euro73, 21st Mar, 2016
    #158
  19. Realist35

    Realist35 Well-Known Member

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    Great learning for me!

    I'm thinking of potentiality invest in Central coast. Do you think there is still some growth left there?

    Potentially Newcastle?

    With NorthConnex being in constriction, and unaffordability of Sydney market, I assume these areas will just get more attractive.
     
    Realist35, 30th Oct, 2016
    #159
  20. sash

    sash Well-Known Member

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    Yes...if you think longer term...but I think these areas have had a lot of growth.

    I see Brisbane, Adelaide, and Perth having more growth in the future .....parts of outer Melbourne if you get in quickly....I reckon Perth is a sleeper the deals there are unbelievable...when it turns...is should be good....but you need to buy absolute bargain to make the returns work.
     
    sash, 30th Oct, 2016
    #160
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