Easiest way to make $1,000,000 from property

But you still need a strategy to make $3M

Cash class investments? What is this? Yields?

 

I was just being cheeky about the other comment that making a million isn't all it crack up to be.

Cash class is where capital is guaranteed. Term deposits, bonds etc. Was looking at this the other day
http://www.latrobefinancial.com.au/Investors/12MonthTermAccount

 

But you do need a maths lesson . Up to your old tricks.

US - Detroit - turning the bend

 

Correct. Its not enough to retire

Correct again

dividend reinvestment

 

I assume they hold such vast asset base of IPs hence on paper on average the CG represents $1million/yr... (e.g. assume $15million worth property growing at 6.67% each year on average = $1,000,500)... Now imagine this compounding yearly so next year growth on growth. In real life no CG is constant and same each year so we just use the average say over 10 or 20 years, etc...
Some of us are fortunate enough....congrats!

 

Someone I know bought old, un-renovated expensive PPOR, did structural renovation, in addition market was rising and hence even after costs/expenses sold after a year making $1million clean (only PPOR hence no CG tax).

 

Would like to see that deal

 

I’m currently 100% offset, will do my tax then re assess.
I’m thinking I’ll start conservatively using leverage to purchase more income producing stocks.
So now As an example rather then putting a grand a week into my offsets, I’ll use that same thousand plus redraw 300 to buy 1300 worth of stocks a week (numbers are just for examples) the interest on the 300 is deductible also which is a little deal sweetener

 

Brilliant
Easiest way to make money....buy in rising markets

 

Below, similar concept but slightly different figures on one such property (address and details withheld just numbers illustrated):

Sales History
Transfer Date : Sale
14 May 2015 : $2,955,000
10 Aug 2013 : $1,510,000 (owner builder did structural reno renos)
20 Jul 2012 : $1,360,000 (owner did very minor cosmetic reno and sold 11 months later)
22 Sep 2011 : $1,180,000

Not $1million but close enough.....many such examples exist and many people do that, just keep upgrading their PPOR while adding either minor or major renovations and timing the market....I assume one needs to be careful that you are not running a business it is to be your PPOR!

 

Must have been some serious structural renovation, with a 200k additional market upswing during 2013-2015.

 

As mentioned the 11 month profit of $150K (excluding costs) was a cosmetic renovation, meaning minor (paint, fixing up few loose cupboards, making small bathroom from toilet nook, fixing up the overall look).
The 2013-2015, yes was a structural renovation, meaning major (changing the layout, size, render, landscaping, etc...).

 

Easiest way. Buy, hold, sell.

Most tax effective way. Buy a run down ppor in a good area in a rising market. Complete structural renovations. Move in and enjoy your dream home while the market booms. Sell near the peak and pay no tax on your gain.

 

Sorry to be a pest, it's just very thorough/detailed me, so:
BUY, HOLD, RENOVATE, SELL.
At least you are aware and agree there are many ways to invest into property.....!

 

Did he do that in a falling market too and lose a million ?

 

Yes very easy in a rising market but in falling market it is easy to lose money
What I am trying to point out is there is skill in making money and good luck in riding a rising market (bad luck in a falling market)
Sometimes people get confused and feel they skillful in making money but are really just lucky.

 

It's supposed to be easiest, so if I want to be picky, renovating is not the easiest

Don't talk to me though. I have renovated every property I have ever owned, almost all DIY, and also a couple I didn't own

I don't do easy but hypothetically, the easiest way to make $1,000,000 in real estate is buy, hold, sell. Of course timing is the key.

 

Perhaps...."We must all wage an intense, lifelong battle against the constant downward pull. If we relax, the bugs and weeds of negativity will move into the garden and take away everything of value."...If we regularly don't look after our gardens the weeds will overtake, right?
+1! Yes agree to that, renovating was never boring to me too, have done quite few myself, however in coordinating and managing and only minor DIY (sweeping floors, providing coffees, mitigations and negotiations, internal designs, marketing, etc..).
I don't know about you but I just love the transformations, the end result...and hence I forget the sweat and tears of the process of grinding through. Like weeding my garden, I dislike what I have to do and see, so I break it into small chunks and concentrate on finishing that. Before I realise...then the end result just puts a smile on my face....until I let go and again weeds overtake my garden (such is life too...).

 

Cannot get if you are being funny or not?
But....If you live in your PPOR you do not sell in falling market you just wait, you need a roof over your head...are we comparing this to shares?
And please elaborate... to lose a million we would need around 50% loss in falling market, assuming of doubling that?

 

...lose money => if you need to sell.
...what has luck to do with it => it will be time, capital growth, holding costs and cost effective Reno in the example I provided above...