Care to share your IP strategy grand master plan?

Residential lending . Ie mortgages

 

My strategy keeps changing.

Originally, the strategy was to buy and hold.

I then found that it's a waste not to develop a land that I own together with my parents and brother, so I did a build and hold.

The latest strategy is to build and sell as I am uncertain if I want to manage more properties at this stage.

 

- Pay off PPOR
- Pay down debt on two IP’s with the excess rent funds after paying mortgages each month
- Purchase more LICs and ETFs

- Earn 50k passive income from rents and dividends and be mortgage free.

 

My strategy is slightly different too but basically being able to create more than one passive income (while you sleep so to say), meaning income not just generated from your hours of work.
So income from business, from property, from IPOs or shares (domestic or international).
Any surplus is reinvested and some spent on other preferential items I like to collect say like art, jewellery, gold, coins, stamps, etc...
Like @Sackie said, when you create a lot of equity/assets and cashflow from various entities, you can pretty much have any master plan you want at any time, which really gives you control over your time and life.
Started with property and eventually kept adding more assets to generate other passive incomes.

 

A number of exit strategies for my two IPs:

1. Long term hold for income
2. Wait for gains, sell
3. Wait for gains, sell with DAs
4. Develop Property 2 ( 4 townhouses or 8 units )

• Sell properties in one line
• Partial sell down
• Progressively sell down
• Hold for income

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For property #1 I also have potential to develop ( 3-5 townhouses or 10-12 units roughly speaking ). Scale of the later would add risk. Townhouses easier to develop of lower risk.

For sell scenarios ( 2, 3 ) generally looking for gains 125%+ to offset CGT.

Development scenarios also better stack up when the underlying properties move from their $300k+ purchase price to $500k+. More total development value to offset design, DA, infrastructure contributions.

Have a number of exit strategies. Long-term preference is dividend-based income ( LICs, Direct stocks, ETFs ) with a partial allocation of capital to speculative but carefully researched stocks.

 

All this from experience.

First timing cycles is incredibly important. Never buy into a peak. I did it once and barely made money.

Second every property is different. I remember I once bought a mixed use that doubled, while my commercial did a 3-5x in same period. I am generally sceptical of resi these days.

Lastly diversity is good - half my time these days is spent on shares, overseas properties, and even farm lands etc which is a good compliment.

 

One strategy is

1) Contribute to super to max contributions
2) Contribute to LiC as pseudo super
3) Accumulate properties in popular cheaper areas of capital cities (< $400k) that have rail / transport, infrastructure and scarcity driving price growth. Must be in demand from owner occupiers not investor and must have scarcity! (Yes these can be found!)
4) Pay down the properties using P & I from high yield properties
5) Sell some of the properties on retirement or when they reach the target and put into LiC or super