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

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

Join Australia's most dynamic and respected property investment community
  1. Realist35

    Realist35 Well-Known Member

    Joined:
    1st Mar, 2016
    Posts:
    1,652
    Location:
    WA
    Would you consider 10-15 year hold long term?

    My eyes are on Perth already :D. Some really cheap units around, in good locations, but I can't see any fundamentals yet. It looks to me like it's gonna get worse before it gets better. Would you agree?
     
    adrian_christian likes this.
  2. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    Absolutely...that is easily one cycle.

    Just make sure you can hold it...as things can change.
     
    Realist35 likes this.
  3. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
    I'm reading having a suitable buffer here @sash ?
     
    Realist35 likes this.
  4. Realist35

    Realist35 Well-Known Member

    Joined:
    1st Mar, 2016
    Posts:
    1,652
    Location:
    WA
    A mix of negatively geared (houses with CG focus) and positively geared (apartments & townhouses with rental yield focus) will hopefully allow me to keep my portfolio growing. At least that's the plan for now:).
     
  5. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    Correct....IR rates or other factors (i.e losing job) can affect holding..put the mitigation plans in place.
     
  6. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    You could possibly do this with houses also...there a positively geared houses also...
     
  7. Realist35

    Realist35 Well-Known Member

    Joined:
    1st Mar, 2016
    Posts:
    1,652
    Location:
    WA
    But only if I employ some value adding strategies?
     
  8. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    Yes...aim to buy houses unreno'd and add value...that will give you both equity and additional rents.
    @Taku Ekanayake employed this has has go up to 5 places...so have others...
     
    Chris Au and Taku Ekanayake like this.
  9. Realist35

    Realist35 Well-Known Member

    Joined:
    1st Mar, 2016
    Posts:
    1,652
    Location:
    WA
    Given I'm in WA, is it safe to buy in another state and pay someone to project manage renos for me?
     
  10. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    Yes...but you could pocket that..and do it yourself by working with a good agent...
     
  11. Tony Fleming

    Tony Fleming Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    717
    Location:
    Sydney
    Yes, a good PM can help with organising renovation work. I would get a number of quotes as they can vary. A few of my regional's have been done without me going there.
     
    Realist35 and Taku Ekanayake like this.
  12. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
    There are also places that can be rented out day 1 following a cleanup (recarpet, paint, screw a door back or two), then can have the reno done down the track. Gives you time to suss out the reno work while the place is tenanted from day 2.
     
    Realist35, dabbler and Perthguy like this.
  13. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,545
    Location:
    Sydney
    Yep....agree with that...
     
  14. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,572
    Location:
    Sid en e - olympic city
    Thus is often a good way depends if your trying to get money out straight away or not........valuer and lenders may want reno to justify or time......

    We have gotten good or great results from basic clean ups.