Hi I'm Michael Chan ( Mick C)

Inspiring stuff Michael.

What is the timeline for developing the Cheltenham house/land?

Regarding the units in Nowra, I assume this was a cashflow play - if you had your time again would you go for this type of investment again so early in your portfolio, or look for a single unit closer to the larger city?

 

I love this story hahaha

Well done Mick!!

 

Hi Mick

Raymond terrace is not that far from our weekender in north arm cove .

I've checked it out and you may find there has been some capital growth , if not , I'd expect some soon .

I know we've had around 25 % in NAC , and the market has only started moving in the last year , though we bought well in 2012 .

Cliff

 

I "try" to find areas that's not hot YET + i like the fringe suburbs. There's a lot of things going on around Cabramatta and Canley Vale hence i went next station out.

Carramar Is more for CG than Cash flow. Rent is around $360 p/w After a full renovations ( it was rented for $280 pw previously)

See attached after an before pics; only competed last Monday...re valued by bank's valuer - HTD for $395,000 as of last Friday. Done some of the renovations myself.

My strategy is
1. Every 1 CG property i bought i will buy 3 Cash flow positive property to support the lost to balance my overall portfolio back to $0

So Sydney - CG
Regional NSW - my Cash flows.

 

Never been or heard of North Arm cove, but it sounds like a lovely beachy area

Unfortunately Raymond Terrance lacks the CG ( which i knew when i bought) ...on a good year maybe 2% growth. But the Yield is fantastic. Each townhouse after all expenses is positive + $3,000- $4,000 a year.

Im expecting Central coast and Newcaselt to boom in the next 2-3 years, given the Urbanization plans. So i have high hopes for Raymond terrance to ride this wave.

 

DA for Cheltenham has been 2 years in the planning! Will never develop within the district of hornsby council ever again..and one thing i learnt ALWAYS hire a private town planner ( thanks @Scott No Mates for the recommendation on SS last year) ..never go cheap and do the approval yourself lol

I Have delayed the build to start mid next year, as i want to wait for the new Chenltenham station upgrade and Epping extension to finish before i complete the project and sell ( will be selling it brand new)

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Nowra was cashflow. If i had the opportunity and experience i would NOT have invested in nowra or "cash flow" that early on ...i would have rather bought a house in Sydney and ride the CG wave ( im a CG investor rather than RY....but i need to buy RY to support my CG holding cost...). I bought that block of unit as it was good value, so no biggie.

Nowra net cash flow for all 4 units combined- $13,000 positive per year
Bought for $527,000 ( 2013) havn't done a valuation since purchase...but my guess is $650,000 maybe higher.
So CG - $123,000 + the Cash flow of +$26,000 for the last 2 years = $149,000

If i paid $550,000 and bought a house in Fairfield/ Cabramatta/ Canley Vale back in 2013 it would be worth $900,000 - $1m right now! Even after $6,000 holding cost/ lost that's a healthy CG of $350,000! + I get to leverage a higher equity to buy more.

 

Hi @Mick C . This is inspiring!

 

Well done Mick ,very impressive portfolio you have there. Was Hillsdale bought for cash flow or capital gain? What rent return do you get and what has the historical growth been like?

 

Hillsdale is for Capital growth.
it's currently renting for $440 p.w which is $30 p/w below market but the tenant been there for over 10 years and is a old couple who take cares of the place...so im happy to keep the rent where it is. No biggie.

Hillsdale has been going up in value by 7-8% per year for the last 3 years, on a average year it would go up around 4-5%.

Th new light rail will surely push the price up + given it's proximity to UNSW.

 

Inspiring stuff Mick!

Keen for another catch up soon

 

Yep Catch up long overdue MX!
Probably catch up for dinner this time, after 1 st week of July ( Got to do my tax early ..so that i can buy more lol)

 

That's amazing success so far. Well done.

 

Well done Mick C - you're an inspiration to young and old alike. Wish my sons would take note!!

 

Wow. Awesome story mate. I'm really impressed with your product that you sold to NSW health at such a young age. Great portfolio too. Well done!

 

Hey Mick thanks for the post. From your posts, I learned you have great attitude towards investing and always learning.

 

Hi Mick
Good stuff [wish we have a thumbs up emoticon for me to insert here].
You kindly helped me yeeeears back to do some numbers on a refi. Unfortunately, I didn't have enough serviceability then to proceed. Have been keeping a look out of your posts over the years.
That Hillsdale 3br unit sounds good value!
Keep up the great work.

 

Thanks!!
Yea the hillsdale was a good buy....very hard to find this sort of deal now...been on the hunt for the last 8 weeks with no luck.

Currently still looking for 2-3 more deal in Sydney ( under my trust) and than ill start to buy up in Brissy /SA and Perth.

Hope everything is ok now from you end?

Regards

 

Update: Property number 15, just went unconditional today, a House around Parramatta region on 530 sq meters land

Will post a bit more details and pics later in January when i settle.

In current process of signing up property 16 ( Sydney) -not yet uncon.

-----For those still in the brave Sydney market-----

Overall ( Sydney) - clearance 55%

Inner city and inner west - clearance 82%, no drop in prices...price still rising at 1% per quarter

North West / North shore - clearance40% - Slight drop in price, around 3-5% less than August 2015 ...so unit less ~$30,000 and house less ~$80,000-$100,000 ( But note the prices here are around $1.3- 1.7M in average so it's not a big drop...given it went up $500,000 in 2 years!)

South ( Hurstville etc) - clearance 50% - Stable pricing, no fall but no increase for the last 3 month

Lidcombe/ Parramatta etc - clearance 60% - Stable pricing no fall but no increase for the last 3 month. Sign of desperation soon as property sits on the market for longer.


Western sydney and South west ( Liverpool/ Fairfield/ Penrith and Campbelltown) -
clearance 30% - Price has fell and demand is less, pricing drop of around 4-8% with lots of room to negotiate.

---------

 

Good stuff, you're a braver man than most.
Thanks for the update.