From $10K in Cash to $3.3M Portfolio

Very inspiring, absolutely love these kind of posts. We all have different journeys and yours is one that is great to see someone buying in regionals and really knowing an area.

 

Thanks! That's what I love about Australia. Regionals have their own economy. Once large enough, they don't need to depend very much on capital cities anymore. Especially with government still encouraging overseas migrants to live in regionals, I still feel positive about population growth and economy growth in regionals. But, of course, COVID19 will more or less affect the growth in every part of Australia.

 

Thanks for being so open in sharing

 

Thanks for Sharing your story with detailed summary of your journey.

 

Hi

can i ask what your income is and what your exit strategy is?

 

Great read Ko Ko! Thank you for sharing

 

@Ko Ko Naing great read, thanks for sharing your journey. Such an inspiring story.
I quietly follow all your tips and tricks on the Ballarat market and has recently purchased myself.
Thank you!

 

Well done. Congratulations

I am curious to know how your properties in Crestmead are going?
I also own a high set property there and find that the council rates are extremely expensive. We also had a lot of bad luck with tenants defaulting on rent and we already had two insurance claims since buying the property in 2016.

 

Nice one mate! I enjoyed reading this.
To others, please post your journey too with the pros cons per properly similar to above as it's very useful to see different flavours or property investing and how others have done it. At some stage I will aim to post mine too.

 

Thanks, all!

Recently, one of the properties there had been through almost 1.5 months vacancy period because of this virus situation. Before that, both properties have been all tenanted consistently. Late rent payment here and there, but they all paid up eventually.

 

Huh? He is trying to motivate ppl!

 

@Ko Ko Naing
I know it's a bit personal but is there any chance you could give a quick overview of how you've set-up your finances? Up to you on how much detail you might want to give but things like what loan sizes (LVR), how much cash, borrowed vs equity used. I think you know what I mean - Just would be interesting to see.

 

@Ko Ko Naing
And, do you think this strategy is still possible now? Lending has tighten in recent years. Or was this only possible when you could borrow money like it was in fashion? I find with now, I can't borrow any more without income increases, which isn't going to happen anytime soon.

 

Initially, a few properties were on 88% LVR, as I aggressively expanded my portfolio. As Ballarat grew value over the past few years and a few properties went through some renovations, the LVR came down quite a bit.

Not sure if it'd be useful for others, but here you go:
PPOR at 80%
IP1 at 67%
IP2 at 59%
IP3 at 77%
IP4 at 75%
IP5 at 78%
IP6 at 61%
IP7 at 80%

With enough servicing and savings/equity, this is still possible. Yes, with tighten lending environment, it's harder.

 

That's interesting. Most of my property purchases were on 95% LVR or more (I borrow as much as I can from the bank, and limit money I put down).

Our of interest, as you expand your portfolio, does it make more sense to put more money down (i.e. fund more yourself instead of bank), or the other way around? What strategies have you all used for your portfolios, and does it make a difference?

 

Slightly misleading unless you've paid off all of them. Otherwise it's like saying you qualified for a 3.3M loan.

 

For me, I usually use bank's money to leverage, as I expand my portfolio, up to 90% LVR including LMI. I use equity from properties as much as I can to fund further purchases, as I wanted to keep my savings as buffer for rainy days. Of course, for my PPOR, I had to use my own savings for deposit and other purchasing cost.

 

Absolutely! This is the "Investor show case" sub-forum too. I guess some people will always see the glass half-empty. The amount of extremely valuable information about Ballarat he's given out to people for FREE is fantastic. Make the most of it, don't poke holes.

Love your work @Ko Ko Naing.

 

Wow great story! Inspiring stuff.

I bought a block of land in Clyde North two years ago (first ever property purchase). Just started building 6 months ago and got handed the keys last week to it hopefully tenants are found soon. 140K equity position its temping to go buy a nice car but I think I'll follow in your footsteps instead and not stray. Can get overwhelming though when deciding upon a strategy, where to buy next etc.

Only discovered this website today so I'll be going through a few years worth of posts from yourself and others !