How I attained Short to Mid Term Capital Growth & out performed the market

Over the past 15 years of property investment, I have attained tremendous CG across my portfolio, so much so, that my holding have out performed market averages.

Looking back the reason behind the performance was the change the area's underlying fundamentals tightening the demand side of supply demand equation.

The following worked very well in our early years for us attaining short to medium term capital growth that allowed us to leverage against and build our portfolio substantially faster.

We looked to invest in suburban areas that were planned for and/or are about to go under gentrification.

Typically looked to where the following 3 sectors were injecting capital -

1/ State/Federal Government. ie Major arterial roads, New Public Transport, Hospitals, Suburb Redevelopment Authorities being formed. etc

2/ Big Multi National Retail & Commercial type companies. ie Major Shopping Centres, McDonalds Hungry Jacks, KFC, Bunnings, Harvey Normans, Good Guys, etc. These companies spend $Millions on market research before going into and setting up shop in an area. If there was no current or immediate future demand for their products and services they would not be relocating there, so leverage off the back of their research.

3/ Private People/Investors. ie Owner occupiers, Investors and developers demolishing older style properties then rebuilding new modern homes and/or redeveloping town houses / villas.

All these ultimately beautify and uplifted the area with a new look/feel, which in turn attracted people to start moving in creating demand..and as you know when demand exceeds supply, that puts upward pressure on prices.

These were the foundations I used in my early days for us to build the multi $million residential portfolio spread around the country we hold today.

I hope this provides some food for thought in helping others starting out down the IP track on their own wealth journeys.

 

Really enjoy reading your posts Rixter (I'm a subscriber too ). This is good stuff.
Could you suggest 3 must read books for rookie investors?

 

Golden post. Should be sticky. I applied these fundamentals early on and they have served me well.

 

Great post Rick!

A newbie question: " does the three golden points applies to any stage of a property cycle?"

 

The second point is a great one not often mentioned elsewhere. Seems obvious after you're told it.

 

1. More wealth from residential property by Jan Somers...for investment strategy.
2. Think & grow rich by Napolean Hill... for mindset.
3. Building wealth story by story by Jan Somers... for inspiration.

 

Yes for any stage of the property cycle...in a rising market it expedites it even further.

 

That's correct...its not rocket science, rather common sense after you're told..

Most people are unconscious incompetents on this kind of stuff up until they move within the circles where it is shared.

 

Awesome, thanks Rick.
Did you even get into much of what might be termed "new age" as far as mindset goes?

 

I mani

Mainly the philosophies written by Napolean Hill.

 

His books were written quite a long time ago. Some of the concepts regarding positive/negative energy, concentration and visualisation have similarities to some forms of meditation, which he may not have known would become so popular in the modern age. Have you looked into any of those techniques outside of the typical investment mindset books?

 

Meditation I haven't... I do follow Hills philosophies in regard to the 3 plains we as humans live in, being: Spiritual, Intellectual & Physical... as taught my Bob Proctor. I intend to post more on that over in the Investor Psychology sub-forum.

 

Thanks Rixter.

1. Yet to read
2. Read
3. Reading

Glad I'm on the right track.

 

Ah no worries, thanks for the replies. I'll keep an eye on over there.

 

Question about researching points 1 and 2 (3 is probably just getting to know the area and drives, etc).


Would you say you first did your research and then looked at the areas or looked at areas first and then checked if they met points 1, 2 and 3?


With researching points 1 and 2 - would you have any tips on which websites, press releases, etc, that you would use to qualify the details?


thanks.

 

First post on this new forum

Thanks for the book recommendations Rick.

I just bought book 2 and 3. Reading the first one now.

 

Dublin, I would research first then looked at the areas. Primarily starting off with where the govt sector was injecting capital, then moved onto 2 & 3..

Sources for information as part of your due diligence - You can check out all the federal/state/local government planning & development websites at this one convenient link (http://www.oultwood.com/localgov/cou.../australia.php).

Other sources I use to gather info are from all the various big multi-national company websites, local newspapers, community news, local businesses, and people in the area.....general networking etc.

Get out and about. Jump in your car and drive around the area. Better still is once you're in your prospective area hit the streets by foot. You will see so much more on foot than by driving.

I hope this helps.

 

Good stuff 911GT3..create your library of wealth books. It will be one of the best investments you ever make.

 

Great post Rixter.

 

Looks like you and I have been investing about the same time....

I hear you retired....are you willing to share how you got there...in terms of number of properties and purchases...to get there....

Whilst not trying to be crass...there are a lot of people on this forum who have 3m+ portfolios....but only about 10% have the net wealth to retire if they chose on over 70k per annum. I believe you are one of them....