It's OK to SELL

I gotta admit i too am not that into his methods ...Just never resonated with me much

 

No real need for CG when the net rental income is more than enough to fund any lifestyle you wish to have.

 

I am not sure that is factually correct. What percentage of Australians actually own investment property? And of those, how many have more than 1? I was reading about 80% of investors have one investment property only? I can't easily look up the stats on my phone but many investors buying up a 2nd and 3rd investment property seems completely wrong to me.

 

Cant say I agree with much of this.

Sure, the 'elite' may have properties everywhere, but most that is lifestyle as much as it is 'investment'. They dont know where the peak is, as much as anyone else. Dont let 'wealth' fool you for being an expert in everything, everywhere.

Elite - the real money and wealth in families is often inter-generational. It is bought and held in forever type scenarios. Compounding has just done its thing forever and a day.

Sure, the BRW has lists, but this often ignores the other half, if not more - the complicated trust structures of genuinely wealthy families and individuals.

How else does inter-generational wealth work so well? No tax events are created. To sell in any speak would often mean a significant tax situation - these are avoided at all costs and Id dare say the wealthy would be working the tax system just as much as they working the investment system. Heck, probably more-so.

This is one place where property has an advantage over equities. In Australia anyway (probably everywhere), it is significantly easier to extract equity and re-deploy from property than equities.

 

Looking for social permission for individual financial descisions. Humans are funny.

 

I see. The question is, does a crash hurt the elite or do they profit from it?

 

You're correct, majority of investors own 1 ip. I was thinking of investors I know, they all have/had 3 or 4 ips and they are just middle class.

 

if it's causing you grief for such a long time you should cut your losses and move on. successful investors don't put themselves through hell for a tiny scrap of extra profit. Find something to invest in that you're confident with and doesn't keep you up at night.

 

It would be interesting to know how many investors are actually at risk. On paper, I am in the "at risk" category but have spent the last 3 years building a portfolio that will still be solid after all my remaining loans revert to P&I in 2 years time. I will be looking at taking on more debt by then, probably more P&I like the last one. Investors who actively manage their debt will do well in the next few years.

 

I agree!

I reduced the price. No one showed up at the home open. I won't reduce it again. It would be giving it away.

I've decided to rent it out again and try to sell again in 12 months. Hopefully I can afford to hang on that long.

 

Must be in one of the slow states?

 

Oh ooops. Only just saw this reply sorry

Yes. Perth.

 

For some I think a lot of it has to do with fear too and stress. I would like to have done something more proactive than purchasing a buy and hold back in 2014 but I got cold feet and in the end fear ruled me. I bought a new 3x2 villa.

I'm thinking I might be able to by employing a ba to manage it. I'd have to make sure I did my own DD. All I know is I can't afford to make the same mistake I did before. Holding properties for 10 years with no growth and with cash flow problems at times as well. So the next time I pull the trigger I have to get it right. Can I trust a BA... splitting a block and subdividing and selling off the back. That kind of stuff sounds exciting to me.

 

I can only speak from my experience and that of my close friends. Many people would like to do the above you mentioned but havent first laid the foundation of developing a certain mindset, knowledge and commitment to making many sacrifices. That's why many run into trouble and fail or achieve sub par results with investing .

Developing real estate (profitably) is 100x harder and requires a much greater level of commitment imo.

 

Bump

still OK to sell...... even more important to strategise today in current environment, Resi yields around 3%

 

I think the best time to sell is to maximize the gain at one place and catch the rising tide of another.

 

Yes
Now we are seeing the tide turn for Perth. Its flying under the radar, this is the time where money can be made with little work, the trend will be your friend

 

How long Perth rising tide will last? I need your crystal ball.

 

I wish I had one

Going to develop and hold all this time, as they will be cash flow positive and just access equity

 

Where are you looking in Perth at the moment?