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Is profit the goal?..

Discussion in 'Investor Psychology' started by willair, 6th Dec, 2015.

  1. willair

    willair Well-Known Member Premium Member

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    I don't know that many properties investors,but the ones i do know the only ones that seems to have made bucketloads are from long term holding,in the locations that 20 years ago it was not some safe to walk the streets after dark,now those blocks rezoned over time values go up the streets change development starts,the others health catastrophes ,falling apart relationships that some never come back from,after getting hammered by bad advice and the dice rolled the wrong way during the "GFC"mach one then throwing in the towel,rent and never invest again..

    Is short term profit your goal,or from experience have long term holding payed off,and i don't judge people by the money they make..
     
  2. hobo

    hobo Well-Known Member

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    Our current goal is income, which will enable us to dabble in further (potential capital gain) properties.

    Edit: By "income", I mean "passive income". Just in case that wasn't obvious. :D
     
    Last edited: 6th Dec, 2015
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  3. Rixter

    Rixter Well-Known Member

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    For me the end goal was the passive income amount required to fund our ideal lifestyle with out the need to keep working for income. It took 15 years to do that using our CGA Investment strategy which is a long term buy & hold strategy. Over that time most our property doubled and tripled in both value & rental yield.
     
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  4. MTR

    MTR Well-Known Member Premium Member

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    Different strokes for different folks.

    For me I started with growth and then sold down and most of the properties pretty much doubled, similar to @Rixter

    I then moved on to creating passive income investing overseas and started property developing.

    I have a mixture of strategies.

    But at the moment cashflow is King or Queen:) but developing provides the icing on the cake.

    MTR:)
     
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  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    The goal is to be able to do whatever we want, whenever we want and as much as we want with total peace of mind.

    Short term is to create massive amounts of equity asap. Then use that equity to start a massive cash flow machine, whilst at the same time having the underlying assets continue to grow in value.

    Also having other money/equity put aside for actively making deals and creating more equity. Always growing.
     
    Last edited: 6th Dec, 2015
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  6. willair

    willair Well-Known Member Premium Member

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    That's a very good mixture to have on both side of the water,that's when the difference from property just being a hobby that makes money,it becomes a occupation that give one a job..
     
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  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    The goal for me is keeping money parked in an asset class where it is not subject to deflation.

    Long term strategy.

    I also want to have enough assets to give each of my children when they are old enough - help out my family.
     
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  8. datto

    datto Well-Known Member

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    Long term hold seems to be the easiest method to start out. Just set and forget.

    As a boom blossoms. Sell some of your portfolio. Use the cash for other income producing activities or wait for the property bust and buy up cheap or buy shares or a business or further education. It then becomes all about growth.

    Just don't become a bogan or at least not a poor one. Thank you.
     
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  9. willair

    willair Well-Known Member Premium Member

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    That's all you have to do mate,nothing wrong with starting out as a bogan i did and with red hair,and i always thought compounding was putting more fill in a trench to hold the pipe work in place,,.
     
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  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    The reason we choose property is for the ease of accumulation.
    The main purpose of property is for passive income.
    Don't care too much about the capital value of the portfolio provided they are quality assets.
     
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  11. Tonibell

    Tonibell Well-Known Member

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    Only ever been interested in capital growth.

    The little bits of cash flow never seem to stick.

    Also, have not yet mastered the art of turning that capital growth in to cash.
     
  12. citystar

    citystar Well-Known Member

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    Passive income to replace my salary is the end goal. The profit or equity drawn out during the acquisition phase helps speed things up. Towards the end of the investment journey profit from selling a few IP's will help pay down remaining loans so they are even more positively geared so I can retire with a comfortable lifestyle.
     
  13. legallyblonde

    legallyblonde Well-Known Member

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    Freedom is the goal!
     
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  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Are you currently serving 15 to life?
     
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  15. legallyblonde

    legallyblonde Well-Known Member

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    Choices?
     
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  16. Handyandy

    Handyandy Well-Known Member

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    started out as income to replace the salary. Salary then grew and finally no longer a salary but business owner so just kept growing portfolio.

    Current aim is to be able to support the whole immediate family at a substantial level.

    My aim was always cash flow not capital gain.
     
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  17. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Looking at your portfolio, you must either have a massive family, or definition of substantial is quite different to others.
    Surely you have already made it big time with the current portfolio.
     
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  18. MTR

    MTR Well-Known Member Premium Member

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    your right HA definition is different to the norm on PC
     
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  19. Azazel

    Azazel Well-Known Member

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    A bit of both - short term profit/equity to reinvest a bit quicker earlier on, but holding for the long term.
     
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  20. willair

    willair Well-Known Member Premium Member

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    Must be good on family days when everyone home,and you sit back and listen to all the stories and jokes from the family ,and think back to where it all started..well done..