[From Somersoft] What advice would you give yourself 10 years ago that you know now?

Discussion in 'Investment Strategy' started by spoon, 19th Jul, 2019.

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  1. spoon

    spoon Well-Known Member

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    Hi All,

    Someone said knowing history is a great way to live the future. I ran into a Somersoft thread and saw some good wisdom displayed. The year was 2003. I wonder if you would do something different today? Thought to see what everyone's response is particularly now we already knew the future from the time this thread was created? I marvel those got it right back in time :)

    What advice would you give yourself 10 years ago that you know now?
     
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  2. TMNT

    TMNT Well-Known Member

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    its sad to see so many familiar names no longer active on here

    16 years is a heck of a long time though
     
  3. datto

    datto Well-Known Member

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    "My advice is that if you invest in cheap property you get cheap returns.

    eg if you bought a $90k property 10 years ago, today it may be worth $220k

    But if you bought a ,say, $180K property 10 years ago, today it may be worth $450K

    The above is from my own personal experience.

    Last edited: 14th Jan, 2011
    datto, 14th Jan, 2011"

    lol. I wasn't the sharpest tool in the shed back then.
     
  4. marmot

    marmot Well-Known Member

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    Don't invest in Perth, which we didn't do anyway, but their does seem to be a light at the end of the tunnel.
    Who knows, in 10 years time you might be seeing the same in Sydney.
     
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  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    Terrific thread
     
  6. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    @datto haha thanks for reading back then...

    "I'm with knightm....love your name bro! (unfortunately I didn't read the rest of knightm's post lol)"
    2015
     
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  7. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    @datto here is what I wrote back then so you can finally read it lol

    "Good job Scumfactor - and nice post (and nice name)

    You have lots of options, I would suggest don't just rush to somewhere like Logan because it is the flavour of the month on Somersoft. Granted this forum is generally ahead of the curve you need to have a good hard think about how you want to get to that cashflow position in 15 yrs. If property is your vehicle, then the income is likely to come from rents. Getting there is going to be a combination of rent and capital increases.

    I like to to think in REALLY basic terms. Imagine a time in the future when you have some houses fully paid off. Imaging they provide you with 5% net return on average. Imagine say 6.5-7% return gross but after rates and insurance etc 5% net. It might be a combo of inner city, suburban and country properties. Just 5% across a portfolio. You with me?

    Ok now to hit 80k per annum, you need 1.6 mil worth of unencumbered real estate yielding the above rates.

    Ok no to get 1.6 mil worth of real estate you could do a number of things:
    1 Buy 10 160k houses and wait for them to double (as long as they all double within 15 yrs you are sweet)
    2 Buy 5 320k houses and with for them to double as above
    3 Do something like 1 or 2 but do renovations to increase speed
    4 As above but add small development, granny flats etc into the mix to generate your own equity.
    5 Any combo of above but end up selling some, buying commercial real estate
    6 As above sell and buy a cash cow block of units, hotel or higher yielding asset that is more specialised.

    All of the above have their pros and cons and specific risks.

    All of the above rely a bit on you and a bit on the market. The more active options require more of you, the more passive options are more market based.

    Personally I would want a spread of locations.

    I would want to catch the ripple of capital growth and do a little value adding as best I could to avoid long lulls in the early years as you need to keep refinancing in the early days to purchase more (unless you can very quickly save deposits from you job)

    Queensland presents many options but try to ride the trend so you get some growth in yrs 1-3. Personally SEQ looks ok to me - Bris and Gold Coast but do plenty of due diligence on suburbs and properties to avoid the duds there are plenty.

    The Sydney ripple is also worth considering as it is pushing out into other areas of NSW.

    Keep reading here there is lots to go on. You will do well. There is nothing wrong with being the "guru" to you friends just keep that attitude that there is more to learn and you will keep growing. This place has libraries full of property knowledge."
     
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  8. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Far out memory lane... Redfern Update thread in 2004 I was a Social Worker in Waterloo/Redfern Housing Estates back then.

    Redfern update

    Sorry to derail the thread but oh, the memories.

    To bring it back to topic, my advice to myself from 15 yrs ago would be to buy one of those run down terraces I used to see near the block in the fern (instead of one of the brissy places we got at the time - still did well but would have done better).
     
  9. spoon

    spoon Well-Known Member

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    Yes, I wonder why the disappearance. They have made it and no longer need to discuss their journey? Or no longer in the property game? Or....:(
     
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  10. The Y-man

    The Y-man Moderator Staff Member

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    On the contrary, I am interested to see so many names are still here :) ...albeit some have changed their identity :D

    The Y-man
     
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  11. TMNT

    TMNT Well-Known Member

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    Are you surprised theyre still here since you became a Almighty moderator :D:D:D
     
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  12. Perthguy

    Perthguy Well-Known Member

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    I wish I put more into Perth. The Pwrth market has been very good to me.
     
  13. Piston_Broke

    Piston_Broke Well-Known Member

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    I would give myself the advice I posted on somersoft.

    There was one thread many years ago where I mentioned that Logan areas and other SEQ new estates were built in flood areas that had been reclassified cause Tim Flannery said it would never rain again in QLD.

    Although I should've bought the old house I pmd Rixter as an example of growth opportunity in 2560. It's now a 6 floor appartment building.
    @datto Local knowledge is the key
     
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  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Has anything changed? :rolleyes:


    Oh, for a lawnmowing and pool cleaning franchise back then.
     
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  15. Scott No Mates

    Scott No Mates Well-Known Member

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  16. JohnPropChat

    JohnPropChat Well-Known Member

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    Screw property. here are the winning numbers for the last 10 years worth of lottos :p
     
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  17. GentleChief

    GentleChief Well-Known Member

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    Great thread btw @spoon

    Good idea to bring strategies that were "the rage of the day" into current day perspective. And how those strategies have played out.

    Living off Equity (or LOE) was a rage back in Somersoft days in 2005-2010.
    Unfortunately in today's lending climate - it is impossible to LOE anymore.

    So,
    The only source of Knowledge is Experience.
     
  18. MRO

    MRO Well-Known Member

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    My advice to myself would be to do the opposite of what you think you should do. Dont invest too heavily in Perth, dont underestimate the time/cost/stress involved in rezoning, allow for some downturn in pricing when doing feaso. The list goes on. Hindsight allows us all to be experts.
     
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  19. sandyfeet

    sandyfeet Well-Known Member

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    'hey Sandyfeet, you should start reading somersoft forums now.... don't wait until 2014'
     
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  20. sandyfeet

    sandyfeet Well-Known Member

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    Interesting thing I've started doing recently is picturing myself in 10 years and wondering what advice I'd give myself now - inevitably I will always play whatever game my 3yr old girl wants to play, go for another surf or leave work on time
     
    Last edited: 29th Jul, 2019
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