Exit strategy poll

Discussion in 'Investment Strategy' started by Sackie, 30th Jul, 2015.

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Which catgegory would you put yourself into when the time comes.

Poll closed 30th Jul, 2016.

  1. Never Sell and Never Pay Down Debt

    9 vote(s)
    8.7%

  2. Never Sell but Pay Down Debt

    21 vote(s)
    20.4%

  3. Never Sell and Increase Debt

    5 vote(s)
    4.9%

  4. Sell Some Properties to Pay Down Debt

    42 vote(s)
    40.8%

  5. Sell Some Properties and Live Off the Profit

    5 vote(s)
    4.9%

  6. Sell All of Your Properties and live off profit

    4 vote(s)
    3.9%

  7. Have no bloody idea

    17 vote(s)
    16.5%
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  1. Perthguy

    Perthguy Well-Known Member

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    Perth
    Not necessarily. Say I had a really great IP in Sydney, with a low LVR. I feel that the Sydney market is peaking and the Perth market is bottoming out. I could cash out Sydney and buy 2 IPs in Perth at the start of a growth cycle. My reasons for not keeping the Sydney property are:
    1) Serviceability. I could borrow against the Sydney property to fund the purchase of the 2 Perth properties, but I would hit a serviceability wall which would prevent that.
    2) Capital growth potential. I may feel the Sydney market will be flat for 5 to 10 years, in which case my Sydney IP will only grow slowly in value over that timeframe. Conversely, I may feel that the Perth market will experience solid growth over the next 10 years.

    Of course this may not apply to many, depending on their individual strategy. There are also exit costs (selling) and entry costs (buying) to consider. Still, I think it’s a solid plan considering the Sydney market and Perth market are usually out of sync.
     
    Perthguy, 31st Jul, 2015
    #41
  2. 380

    380 Well-Known Member

    Joined:
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    Posts:
    1,353
    Location:
    Australia

    Sounds good in theory, practicle outcome can be totally different.

    If one is netting $600-$700k out of each development, why even think about exit strategy. Rinse n repeat till death!:)

    In that case, exit strategy will have different type of options

    Pass on business to next generation
    List the business on ASX.
    And few other options:)
     
    380, 31st Jul, 2015
    #42
  3. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.

    That's precisely the exit strategy :) When im talking about 'exit' i'm meaning exit forced employment to something you love and have the freedom of choice to do. I know there is no 1 right way though.
     
    Sackie, 31st Jul, 2015
    #43
    380 likes this.
  4. 380

    380 Well-Known Member

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    19th Jun, 2015
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    Location:
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    Drop in to our vineyard at San Gimigano!!!!:):)
     
    380, 31st Jul, 2015
    #44
    Sackie likes this.
  5. Sackie

    Sackie Well-Known Member

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    Location:
    Vaucluse, Sydney.
    OK now I'm jealous! :D
     
    Sackie, 31st Jul, 2015
    #45
  6. 380

    380 Well-Known Member

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    19th Jun, 2015
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    Location:
    Australia
    @Leo2413

    Once you finish parra, you are welcome too..:)
     
    380, 31st Jul, 2015
    #46
  7. Sackie

    Sackie Well-Known Member

    Joined:
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    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    oh ill remember that! :cool:
     
    Sackie, 31st Jul, 2015
    #47
  8. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
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    2,517
    Location:
    Investard county
    Only goon bags from liquerland for me Chirag pal!
     
    Biz, 31st Jul, 2015
    #48
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