It's OK to SELL

Its kind of fun getting the money back in the door.

I sold out too early from Melb and Syd but I guess what would be worse would be getting stuck at peak and not being able to sell.
After boom comes bust or correction or slow down....what we are now seeing in some markets.
A profit is a profit

 

No right or wrong but what suits.

I started as a buy and hold investor never sell and then life happened and I could no longer hold the bleeders/negative geared properties. Something that you cant plan for, you don't know what can happen, ie divorce, recession, job loss etc.

I had no choice but to look at ways to improve cash flow via developing property and USA property cash cows. It certainly pushed me out of my comfort zone,

No regrets, the strategy of being an active investor has allowed us to retire early and continue growing asset base with less risk.

MTR

 

You mean a revolving cash register where you keep nabbing the cash.

 

Yep...in the process of doing this on some of mine....

@Lacrim ....

 

Still digging in.

 

Are you an ANZAC are you....LOL....

 

Real estate is a global game. That's why the elite have properties all around the world. squabbling over whether Sydney has another 5% CG left in the tank is silly. You need to sell everything you have invested in an exhausted market and transfer it into a booming/stable market. That's how the elite remain unharmed during a downturn.

Of course, global real estate isn't for everyone and that's why the elite stay elite and the plebs stay plebs.

 

My unit is on the market. Having second thoughts about selling it though as i won't make much money on it.

It's shame to have held it for 10 years though and for it to be valued and selling it for less than what I paid for it. The question is do I try to hang on for a few more years with hope it goes up in value or do I sell now and have a more enjoyable life and better mental health. I've had to be so careful with my money, haven't had a holiday in like a decade for instance as my cash flow isn't flash hot and I've been worried about possible unexpected expenses. Especially since the rents dropped a couple of years ago I've eaten into my savings.

I don't think I want to put up with it for a few more years. I feel I'm at the end of my rope. I want that noose around my neck to loosen. I'll come away with at least $55k from the sale. I can put it in my offset against my ppor and will have $65k sitting there against my $200 k loan. Just a small mortgage will take the pressure off. Maybe then I can look to invest in a few years time after having a breather and saving for a while.

You make a good point about cashflow MTR! It's important to have it. I'm going to do things differently from now on and make sure I have good cashflow. It's too stressful otherwise. It's no way to live. If it means I have to slow down my speed of buying ips then so be it. At least then I'll have some balance in life. So I'm looking at the silver lining here! The positives to take out of this. Time to liberate myself.

 

Imo Your wrong . The elite recognise value in challenging markets and hold good real estate in long term high demand areas and keep holding . During the GFC did you see all the elite real estate moguls sell up in the US? Quite the opposite. Many bought more assets at rock bottom prices.

 

What's the point of capital gains if you don't sell at the peak?

 

Depends on goals. In terms of building wealth cg can be extracted and redeployed while you retain great assets. I have nothing against selling but I dont believe in constantly selling quality assets which will continue to grow in time.

 

Former bank boss David Murray warns of disastrous property crash | The New Daily

I think this guy states the most significant risk. There's too many investors. Every man, woman and child is buying a 2nd and 3rd IP property. Like I said earlier, when the masses start getting involved that's when things get too risky.

 

Extracting CG (selling in one market) and redeploying (buying in another) is pretty much what I was alluding to. Holding onto great assets makes sense but are majority of assets great?

 

Extracting equity doesn't mean selling the asset. It means asset revaluation and taking out any increase in value to invest somewhere else, while you STILL retain the asset without incurring selling costs etc.

I would agree that a lot of stock out there is NOT great, but isn't it the investor's responsibility to be able to do DD and choose good stock for their situation?

 

So you buy assets when they are low and leverage against them as they increase to buy other assets in other markets so you're diversified which insulates you against losses in one market as the other market increases, which means you're not pressured to sell except for the low quality assets which won't rebound in value or provide solid cashflow, and you continue this process until you end up with a portfolio of high quality assets? Is that the broad idea of it?

 

In very simplistic terms, yes, that is what I used to do for a long time, plus also add value to the asset with renovations to further manufacture equity and increase the buffer of safety from market fluctuations. What I do now is somewhat different. But in essence you have it, though there is a lot of work which goes into that and its not quite as 'easy' as it sounds, but essentially yes.

 

Saw the title and thought. Awesome thread

Hugely disappointed and stopped reading as soon as i saw steve mcknight

 

I will happily admit what you said didnt even come into considerarion when i started buying

 

I guess what led me to have that thought process was all the reading/networking I did and things just clicked bit by bit over time. I was obsessed with reading everything I could and Imo its made a big difference because i avoided so many simple mistakes ppl can make early.

 

Really I am a fan of SMcK