How Will You Grow Capital over the next 5 years?

Discussion in 'Investment Strategy' started by MTR, 6th Sep, 2017.

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  1. MTR

    MTR Well-Known Member

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    I started a thread some time ago " Grow Capital First"

    Grow Capital First

    I understand we need cash flow to survive, but its a catch 22, you need capital first to create cash flow

    So how are you going to create capital moving forward.


    MTR:)
     
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  2. MTR

    MTR Well-Known Member

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    I guess I best start with what I will be doing....baby steps from here with Oz property, anything where I can add value/developing I will look at.

    I am going to stick to affordable housing price range (FHB) territory, if I cant sell I want to know I can hold property for the long term and it wont cost me 1 cent.... Government is not being nice to investors at the moment, they want to get rid of our perks... damn them.
     
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  3. Jaxon Avery

    Jaxon Avery Well-Known Member

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    MTR great question even though I am sure you have 50 answers, I love the premise.

    This is something I mentally struggle to work out exactly. Not in regards to buying BMV or Building equity, but how to forecast the market.

    I love warren buffet and one of my fav quotes is
    "only when the tide goes out do you discover who has been swimming naked"
    So to add the things I know add value
    -Improve Income
    -buy assets under value
    -Build equity by adding value to properties (reno, add ons, change of title, sub div etc)
    -buying problems and selling solutions (be the right amount of crasy)
    -Tax professionals that really understand this scope of work (something I need to do personally asap)
    -Review loans and finances at least quarterly to look for saving opportunities
    -Live below means (save and save)
    -Insurance so you cant loose the equity, or if something goes like the roof, you get a new one covered under Insurance clauses that then builds equity by new roof
    sure there are many more.
    just wanted to add my two cents.
     
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  4. MTR

    MTR Well-Known Member

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    Yes, many ways to skin a cat.
     
  5. DowntownBlock

    DowntownBlock Well-Known Member

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    be UNDERinvested in Sydney property (avoid capital losses anyway) . . . renovations in coastal locations for lower end of market rentals . . . buy more shares..
     
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  6. Tonibell

    Tonibell Well-Known Member

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    Expecting Brisbane to do the lifting for the next 5 years - Sydney has done its bit and can have a rest.
     
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  7. Biz

    Biz Well-Known Member

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    [​IMG]
     
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  8. sash

    sash Well-Known Member

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    already turning the ship will sell 3 and buy 4

    the plan going forward is to be more active focusing on people with money like baby boomers....coastal locations are the go...but require serious dollars
     
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  9. xactly

    xactly Well-Known Member

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    Sold a non performing unit. Settled last week.
    Non performing in terms of Capital Gain (Brisbane inner ring. not quite the CBD no-go zone but it won't move for years with poor rent increase prospects) or opportunity cost.


    Portfolio was neutral after tax. Now is 20K positive per year.
    All offsets are full.
    saving and stashing away in LICs and direct share portfolio. as usual.
    No margin loans. paid them out 2-3 years ago.

    will do that until the next crash, its been 10 years, Im sure it will be here within 5 years.
     
  10. Sackie

    Sackie Well-Known Member

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    Add value deals, reduce debt, add value deal, reduce debt, add value, reduce debt. I have 4 projects planned plus looking forward to getting into Perth over the next 18 months.
     
  11. datto

    datto Well-Known Member

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    Inheritances.

    With an aging population it's a growing industry.
     
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  12. TMNT

    TMNT Well-Known Member

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    I was at a gathering recently, and a fairly young motivated guy comes up to me and says , I heard a bit about you..

    My initial thought was "oops what have I done, and am I going to die"

    anyway, this guy wants to get into the property market
    and his question was what would you buy looking at a 5yr time frame,

    I actually couldnt give him a straight answer of what id do,
    in fact I told him what I wouldnt do

    I told him, avoid sydney,
    melbourne has done most of its growth, it could continue to grow a bit more or it could slow down, I dont know, im not good at predicting
    Brisbane and surrounds seems to be a bit of a winner
    perth has done most of its falling,
    different areas have different markets, and there is always an area thats doing well or about it

    we discussed a bit more, and when we parted I realised on real estate alone, if I was starting out now i reckon id struggle to decide

    it seems many markets are at peak or peaking
     
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  13. MTR

    MTR Well-Known Member

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    Heard Gosford is going nuts???? Anyone know???
     
  14. splatters

    splatters Well-Known Member

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    Yep all of the central coast is going crazy. I thought about Gosford about 12 months back and enquirer on a few properties, spoke to some agents. They said it was hotter than it had been in years. So many people priced out of Sydney were looking to buy there, and there is a bit of an exodus of people escaping sydneybfor a better lifestyle.

    I haven't done any significant due diligence, just some quick research and a few phone calls.
     
  15. Stoffo

    Stoffo Well-Known Member

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    You need to know who your parents are first :p

    Moving forward, taking time to build up offsets, looking for opportunities outside of property :rolleyes:
     
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  16. MTR

    MTR Well-Known Member

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    The ripple effect
     
  17. datto

    datto Well-Known Member

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    Well I've met about half dozen stepmothers. Surely one has turned their life around and made a squid.
     
  18. DaveM

    DaveM Well-Known Member

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    @datto grows capital and cashflow under 40 halogen lights in his mate Robbo's garage (windows blacked out with plastic of course)
     
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  19. RetireRich101

    RetireRich101 Well-Known Member

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    @DaveM KFC is overrated...

    Los Pollos Hermanos fried chicken have much better cash flow ;)

    upload_2017-9-9_22-11-50.png upload_2017-9-9_22-15-56.png
     
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  20. jins13

    jins13 Well-Known Member

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    Get married and have two incomes. But not going to let fate do the work and will do renovations on current properties to extract maximum rentals, granny flats/ conversions and consider buying cash flow properties to balance the books. The other thing I am working on is increasing my knowledge and skills to apply for a higher paying role and safeguard myself for the future.