Did you Sell any properties during the boom Cycle (2013-2017)

Was close to pulling the trigger but instead bought one more in QLD...

Unless things change otherwise, in for another cycle (means at-least another 7-10yrs)!..

Cheers,

 

Just wondering how can you borrow so much from the lenders. How did you get such high borrowing capacity

 

i don’t borrow much. My borrowings represent less than 10% of my net assets.
Also I may be a lot older than all of you, so have a good amount of assets at 58.

 

How did you get so much fund to buy large pieces of land? Is that from the profit of property transactions

 

I’m a very clever property investor with 39 years experience. I have had over 100 properties in that time. Gave half away in my divorce and live a very modest life except for going away on holidays at least 1-2 times a month.

 

during this cycle

I sold -
1 in Sydney
5 in Melb
5 in Perth


I am happy I sold .... these properties are worth less today

Why I say take money off the table

For thise who hold forever good on you. But are you going to retire young???

The goal is to create income streams, cashflow

 

You will never know the perfect time to buy or sell until it’s too late.

But my favourite quote is by Bernard Baruch

You’ll never lose money by taking a profit.

This is so true, yet has been lambasted by Warren Buffet, by misquoting it as “ You’ll never go broke taking a profit”

 

Very impressive !! What is your thought on the Hobart and Brisbane markets? How much more growth do you expect the Hobart market has in the next 2-3 years?

 

Yes....

My point is buy on a rise and not before, not hard to do.... exit strategy is bail when you have good gains. Peak will be hard to predict

I bailed a little early .... chicken..... but doubled my money in Melb and Syd. Approx 30% Perth

I am not a greedy person......

 

That’s my philosophy.

 

I never buy more than 30 mins from my home or office. Parramatta, Hills district and Melbourne. I want to know the area I am investing in better than the average Joe.

 

I think that is everyone’s philosophy but not many have achieved it.

 

Yes sold one
Only sold one in 20years
Sold for $300k was renting for $800pw
Held for 10 yrs lost $60k
Yellow stickered
(Took over the property when a mate defaulted on a loan)

 

Would you live in your car while you study ?

 

No. It will be a van. More room for your legs and creature comforts. Winter time may be a little bit of a challenge though.

 

I'd love to retire young, but I only have one property, purchased two years ago. My plan is to buy and hold and then use the equity to purchase more properties. At some point (20-30 yrs) I'll likely sell some/most to pay down the debt - seems like a common strategy.

What limits some of the selling is the costs to get out and back in. Selling fees of 2% and stamp duty (in Vic) of 5% plus titles, conveyancing, etc and you get to 8 - 10%. While I could sell my current property and take a 25% profit, a lot of that profit gets eaten to get back in. I'd rather hold a good property in a good location and then use the equity. That's my plan right now, though I'm sure it'll be modified in the future.

I've drawn out my equity into an offset and considering purchasing up in Brisbane, but may wait a year or two to see how the global and national economies are doing.

 

Hmmm....
I'm of the younger generation and I see these posts and shake my head. No wonder I can't get into the market!

 

In retirement, I believe shares are a lot better than property for income, as they are a lot less work (virtually nil) and money is tax-free if held in Super in pension phase.

We use property for growth and use OPM to maximise this growth. Our debt levels today in retirement are higher (in $ terms) than any other time in our lives.

I couldn’t pick an investment winner between shares and property. So, I pick both. Over time, I learnt the benefits of each and built a strategy that works for us.

I believe all investors need to work out the right mix of property, shares and cash/cashflow for them now and into their retirement. The right mix will change over time and it is best to allow as much time as possible to accumulate property AND shares if one wants a great retirement IMHO.

 

Sold in Sydney in 2017 to balance the portfolio - had become too Sydney property skewed because of the increases. Currently getting organised to sell one in Brisbane for largely the same reasons - probably be 2019 before it happens. Risk profile and cashflow have also been factors.

 

I'm worried that the price you sell for will be much lower than if you got a move on and sold this year.