Case study discussion

Hi,

Always good to learn from others and to think outside the box.

Recently received the latest edition from "Your Investment" and it was pretty interesting to see the numbers for one of the featured investors. To be clear, l respect any property investors that are willing to give it a go and improve their quality of life for their family and loved ones.

Anyway, other than the Forest Lodge townhouse (possible PPOR purchase) and Cambridge Park, this investor purchases in my humble opinion was pretty poor. IP3-The St Mary property, the investor spend a significant amount and an additional $100k to build the granny flat. It was sold in 2013 doubt it broke even with the costs associated with this property. The other purchases made in Qld since 2008 made no real capital gain and in fact went backwards and costing her money due to the expenses.

Thoughts?

 

shame they sold St Mary's 2013 beginning of Syd boom

 

How did the story read? A "lessons learnt" article? ?
Would have been better to sit on the first one then give the equity to someone (ba/advisor) to play with on their behalf

 

investors make poor decisions because they don't consider market conditions, buy wrong product...happens all the time

I met a couple of investors who purchased via BA years ago and properties have achieved no growth, even going backwards

I think comes down to education/research and a splash of luck

 

I wouldn't have gone for those last four, but each to their own. Didn't read the article, what was the strategy they were using (or attempting), were they just hoping for significant growth?

 

Agree with you @jins13. Not good apart from the first 2.
Ps. Why does the first property have estimated expenses of 2k per week?

 

Think the investor didn't perform their due diligence and l reckon the expenses are exaggerated and is alot higher. If it wasn't for the first two purchases, this investor had a pretty poor portfolio. Well it wouldn't be my strategy.

 

Probably had been reading about an imminent boom in Qld

 

The question l have is would the experienced investors in PC sell the last 4 Queensland properties? For me, l can't see those units be worth holding for the long term and it'll be a bleeding me dry. I know this investor is in her mid to late 50s so time is not on her side and due to the APRA/tightening lending criteria she may not be able to buy any further properties.

 

The title is "Accidental investing leads to $2.5 million in wealth"

 

I'd see no point whatsoever in pouring money in to holding those.

 

I'd put them on the market.

 

same