How many houses did it take for you to acquire $1 million in property?

Interesting range of prices, could you share some of their locations?

 

@M & S Some cheapies there, good on you.
Where abouts have you been buying them?
Edit: You beat me to it @HUGH72

 

Thank you @Azazel. Throughout the northern suburbs of SA.

 

Okay, makes sense, you are probably getting some nice yields along the way as well.

 

Always keen to hear what others are doing as well.

 

Ah, very good.
I guess you are familiar with the Elizabeth mega thread?

 

@HUGH72 Good rental yields but have to ensure you have a good PM particularly in lower socio-economic areas such as these. So far we have been lucky with our tenants, but there are some horror stories out there!

 

@Azazel I only found it recently (last week) as relatively new to online forums... Considering we had limited to no competition when we originally bought ours, I was quite surprised to find it.

 

Well you'll have to give us some of your knowledge/experience from the area over in that thread.
I've got no idea, but would consider buying there if I found a good deal.

 

I'm still pleasantly surprised, 3 and over is at 52.1%

 

Technically speaking I still haven't reached $1M.

Total purchase price was $861,500 excl stamp duty with granny flats added later.
Portfolio at market value is over $2M which is nice.

 

It would be great to read of your experiences in the Elizabeth thread.

 

Are GF builds included in the $861,500?

Smashing effort to have the equity position and cashflow you'd produced btw mate. It's impressive.

 

Doesn't really matter when you're doing that well, good on you mate!

 

Market Value is different to Bank Value which is significantly less.

Granny flats were an extra $300k. + other purchase costs etc. Not much left.

I turned down a few sites with much regret. 8 unit site for $270k 1 street back from main st in st marys 500m from station etc. All these sites are now over $1M with no extra expenses.

Refining my strategy like mad atm.
As i stated in a previous thread. When you really look at the numbers there isn't much there. Though due to placement and all the work out west i expect another big win through the next cycle.

 

Great achievements. However, I see on the other thread you commenting that buy and hold is too slow. My query is whether instead of building the granny flats you used that cash to purchase more properties in Western Sydney, what position would you now be in? Ie. Do we overthink things sometime and the traditional buy and hold would have outperformed.

 

100% agree. I had however left my job to start a business so was unable to purchase more property. I had enough equity to purchase 4 more at the time.

Also sometimes when you are that close to the market. You see the movement as over priced property instead of the begining of a huge hike in prices.

Now the next boom will be all profit. But when will that happen. It is out of my control. Also if i have millions in equity, my borrowing is still capped by my serviceability aka job and rent which is currently capped at 6% by APRA ($40k passive income fail). A passive income which will vanish as i pull whatever equity i can to purchase more property. Many flaws in my strategy.

As Ace stated. How long to make millions on a normal sized porfolio?

My aim isn't to diminish buy and hold. Only have people question, what are they holding and will it get them where they want to go. I will have a healthy retirement. Now my aim is to have a healthy 30s to spend time with my wife and kids.

 

Our first purchase in 2008 was a development site $1,035,000 it was the first property to hit the million $ mark in the suburb and now they are hitting 2mil mark for half the land size that ours is . Funny how everyone thought we were crazy to pay it back then!

 

I thought there may have been some recent purchasers in Sydney voting 1, but $1M+ in 2008 would have been a big shock for everyone as a 1st IP. Good on you!

 

Time heals all wounds. I'm sure these changes won't be permanent and in a few years people will forget that APRA exists. Of course, that doesn't mean that it doesn't suck right now.