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

Discussion in 'Investment Strategy' started by MTR, 26th May, 2016.

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  1. MTR

    MTR Well-Known Member

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    Pavarotti best ever IMO…. Yes goosebumps, my dad would argue Caruso.
     
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  2. Sanka

    Sanka Well-Known Member

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    Only at 5m approx at present but will hopefully hit 10m in next 2-3 years. Yes agree its only a small percentage of population that can get there. Ie if you have 10 properties worth 1m each then you are probably paying 10-15k a year per property in holding costs with p&i so 100-150k a year goes to holding costs. Talking about CG properties yielding 4% as a hypothetical. Not many can afford 100k-150k holding costs yearly from their net income. You could do IO but then at some point it will get tricky plus continuing to get lending from the banks is a barrier. So yes its not easy for sure but if you can get there then the formula looks simpler from that point onwards from what I can assess so far!
     
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  3. sash

    sash Well-Known Member

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    That is why you have to structure correctly from the beginning. Buying 5-7 type properties optimise the growth.
     
  4. HG2

    HG2 Well-Known Member

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    Hi Sash, I see you mention 2-3, 5-7 properties etc a fair bit. What actually is a 5-7 property?
     
  5. sash

    sash Well-Known Member

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    Solid middle class areas. Typically this means as a rule of thumb between 25% under and 25% under the median.

    So for Brissie assuming a median of 700k...it would be properties (houses) between 550k to 840k based on current value. Obviously a lot less when I bought when the median was about 500k.
     
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  6. HG2

    HG2 Well-Known Member

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    I see! So say a few years ago, a 2-4 type would be like something from say the Logan area, cf+ ; a 5-7 type would be something like from Chermside, Ashgrove etc?

    What would you consider 7-8 type in today's market?

    Thanks for your quick reply and detailed explanation!!
     
  7. sash

    sash Well-Known Member

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    1 = Kingston/Woodridge
    3= Crestmead, Marsden
    4-5= Strathpine/Petrie/Bray Park, Underwood, Regents Park
    5-6= Redcliffe, Clontarf, Bracken Ridge
    7= Chermside, Nundah, Salisbury, Moorooka
    10=Hamilton, New Farm, Tenerriffe
     
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  8. KinG3o0o

    KinG3o0o Well-Known Member

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    easy to say if you are born in first world country, even easier if white male, especially in country like Australia,

    to change a sail of your boat, first you got to have a boat.
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Even those in the 4th world can change things.
     
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  10. HG2

    HG2 Well-Known Member

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    So comprehensive!! Thank you!! :)
     
  11. bythebay

    bythebay Well-Known Member

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    Anyone who bought anything in Sydney in 2016 has probably made $1m since ….:)
     
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  12. NickWCBA

    NickWCBA Well-Known Member

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    Can you unpack this a bit more @sash . Are you saying that purchasing house and land in 7-8 areas has provided you with most growth?
    When you say 7-8 are you talking about greenfield estates or buying inner city blocks and building on them?
     
  13. Gockie

    Gockie Life is good ☺️ Premium Member

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  14. a’mare

    a’mare Member

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    Creating $1 million is pretty easy.

    As many said, hold good assets in inner ring of Sydney or Melbourne and let organic growth do the magic.

    At current rate of growth, buying to develop makes no sense. Almost every department of approval authorities are running behind + rising material cost and shortage.

    Personally, I’ve managed to secure 8 properties since March last year and they all have seen over 30-40% growth.

    luckily I stuck to Sydney and surroundings- higher entry point then Brisbane but higher growth rate.

    @MTR

    Should revised thread head and add 0 to it. That will make this discussion much more interesting.
     
  15. MTR

    MTR Well-Known Member

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    Yes, started thread in 2016, how times have changed

    I think I did mention EASIEST way… buy in booming markets, practically all markets are booming….. load up

    Next thread may be…… How to protect your capital :)
     
  16. sash

    sash Well-Known Member

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    I have made the most money in Geelong. I had people on here tell me new estates in Geelong and Melbourne. Most I bought under $260-395k....just about all of then have doubled. People like @ashish1137 ..... @Westie used my strategies to make the dollars also. Another 10 or so on the forum have also done this....with great success.

    For example I got into St Leonards Vic when the land was $140-155k. Build houses including land for 355k and 395k....now 750k and 800k plus. Land bought off the plan in 2017.

    Don't believe all the BS about House and Land not being profitable. Doing this also in other areas...again same growth. But selection of asset is key.
     
  17. Westie

    Westie Well-Known Member

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    Yep, I've hung onto @sash's coat-tails and learned heaps off him. In turn, I've helped several people on here and other mates build multi-$1m portfolios of their own, entirely based off of the learning from the king of H&L.
     
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  18. sash

    sash Well-Known Member

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    Aww....thanks....but action is the key...a lot on here...contemplate their navels...want to argue about how older places are better...they want a BA with a lot of experience...etc.... all excuses.;)

    Action...that is the secret ingredient...not many people can do that even with people guiding them.:p
     
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  19. Rooky

    Rooky Well-Known Member

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    I would say there is no easy way to make 1 Million from property for most of the people...for average person, it takes lot of effort whether its through buy and hold or development or retain and build or reno...when you are starting out as average person, its difficult...if you have good background in property or money, its little bit easier...once you know your stuff, it becomes less harder but never easier...all people who say its easy, i would ask them was it for them when they started? Even B&H requires some finacial descipline and time to work its magic.
     
  20. Gockie

    Gockie Life is good ☺️ Premium Member

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    It's not hard if where you buy your home booms. Castle Hill in Sydney you could easily buy a great home in 2012 for $850k. Now it's roughly $2.5mill. A reasonable proportion of Sydney has had similar gains.
    If your local housing has not boomed, then it's hard.