How Will You Grow Capital over the next 5 years?

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

Join Australia's most dynamic and respected property investment community
  1. Username86

    Username86 Well-Known Member

    Joined:
    31st May, 2016
    Posts:
    139
    Location:
    Perth
    Cosmetic reno on one, maybe two, IP's. Purchase PPOR for renovation and maybe look to add some cashflow by dual occ..
     
    Perthguy likes this.
  2. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    6,675
    Location:
    Mt Druuiitt
    Money does not grow on trees!

    It grows on plants lol.

    Every 12 week cycle if you're good at it.

    Primary production also has great tax incentives (if its legit).
     
    Last edited: 10th Sep, 2017
  3. Gavin Ng

    Gavin Ng Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    198
    LED's are the way to go now mate, runs cooler, no need to change bulbs, less fire risk and burns less power ;)
     
    Perthguy likes this.
  4. Melbpositivegeared

    Melbpositivegeared Well-Known Member

    Joined:
    23rd Jan, 2016
    Posts:
    114
    Location:
    Melbourne
    For me it's buying, renovating and possibly strata titling unit blocks in regional towns or areas that have hit the bottom of the market.

    Future growth is great, however I feel it's always a gamble and should just be treated as a bonus.

    I'm specifically focussing on high income strategies that have large manufactured growth potential in areas that haven't seen much growth in the last few years.

    If I can increase the value by 6 figures and get an income in the 5 figure range and get delayed settlement terms meaning low cash input then I'm onto a winner.

    I guess I'm saying there's no specific natural growth strategy for me- I'm manufacturing it- However as I'm mastering this I'm starting to look toward cities at 5-6 o'clock on the property clock
     
    Gypsyblood and Perthguy like this.
  5. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    I don't know. I have finished one reno and nearly finished another. This puts me in a good cashflow position. Early next year we will finish the townhouse development and cashflow will be even better. After that I need a break, regroup and pay down some debt. I don't know what my next project will be after that. I will need to assess the market and my borrowing capacity at the time. Possibilities are: unit development, reno to sell or PPoR.
     
  6. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    At this point in time I am thinking PPoR.
     
    Gypsyblood likes this.
  7. TreeChange@50

    TreeChange@50 Well-Known Member

    Joined:
    31st Oct, 2016
    Posts:
    125
    Location:
    Australia
    Combination of private company (definitely), buy & hold equity (hope they keep going), development (newbie, so we'll see) and super (been a good l/t performer so far).
     
    Perthguy likes this.
  8. Gypsyblood

    Gypsyblood Well-Known Member

    Joined:
    12th Dec, 2016
    Posts:
    522
    Location:
    Melbourne
    I am going in with some risk but I feel like saving into offsets is not a good enough option for me now. Seeing the magic of investing and capital growth where buying 1 property in 2015, another in 2016 and finding that selling the 2015 one can get me 2016 one right away, I'm inclined to keep investing whatever savings I manage to get together with the belief that that outcome will be better than just saving into offsets. Because I'm at my servicing limit for a leveraged product like property, I'm going with shares now.
    Plan is to invest as much as I can in a growth portfolio, check wether that portfolio has built up enough to be able to sell it in 5+years and get enough money to put into a subdivision on one of the IP.
    Not a very safe strategy cz I might lose the lot.
     
    flyhere and S1mon like this.
  9. Lawrence Barnes

    Lawrence Barnes Well-Known Member

    Joined:
    13th Sep, 2017
    Posts:
    280
    Location:
    Brisbane
    Easy, buy good quality properties in high growth area's of our major capital cities, namely Sydney, Melbourne and Brisbane. Add value through renovations or development. If you buy well the market will do the hard work for you.
     
    adam duckworth likes this.
  10. tc8

    tc8 Well-Known Member

    Joined:
    1st Nov, 2016
    Posts:
    62
    Location:
    Melbourne/ Hong Kong
    I have been selling shares & ETF now (mainly in the US and Hk). But after reading this thread I think I will slow down the process.

    I plan to sell everything by end of the year, and start investing in Australian property. Hopefully the Sentiment in the property market will be very exuberant next year.
     
  11. ttn

    ttn Well-Known Member

    Joined:
    9th Sep, 2016
    Posts:
    557
    Location:
    Sydney
    Send the kids to work to pay for boarding, utilities & clothing expenses and food :D