It's the portfolio $$$ that counts not the number of properties

Discussion in 'Investment Strategy' started by Property Twins, 13th Sep, 2015.

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  1. Sackie

    Sackie Well-Known Member

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    Counts for overall growth potential, imo.

    Id rather have a portfolio comprising of 8 properties totaling 5 million than 15 properties totaling 3mil. Larger asset base growing plus less assets to manage,less maintenance, tenant issues etc.
     
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Property Chat bragging rights :p
     
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  3. HUGH72

    HUGH72 Well-Known Member

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    Its actually the net equity position that means something not just gearing to the max. Anyone can just buy a few properties and say they have an asset base worth $xxxx built on valuations with shoe string equity at best.
     
  4. Redwing

    Redwing Well-Known Member

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    Acquiring future Portfolio $$$$$ :D
     
  5. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Thanks for the input guys.

    Some peeps took it as if their chosen investments were being put down. But the point was buying trinkets instead of treasures. I admit everybody's definition is different.

    A "good" investment need not be bought in the city and lets accept, not everyone has the funds/help from family when starting out.

    After I read TMNT's thread, timely enough, we were in the Hunter Valley for friends' wedding. So we went past Cessnock etc. Now I don't know a lot about those areas, but it reminded me why I wouldn't buy there.

    I know people can and do, do well in the lower entry areas. We certainly did in Mounty County (aka Mount Druitt). Though I must point out someone starting out in early 20's may not always have the funds for value add.

    For the record @monalisa and I started with $41k at 24 with a family (mum and younger brother) to support with not much with us.

    @2FAST4U - there is a difference between working for an investment bank and being an investment banker :). When we started investing our income was below the average Australian income. May I also add, I have seen people use low(er) incomes as an excuse. Yet there are others who have done very well with the low incomes. This is certainly subjective. What I want people to understand is, they need to take responsibility for those incomes. The reason being @monalisa and I started with not much...heck we came to this country 14 years 352 days ago! We just went and worked hard every single day of arriving in this country. So call it ignorance, but I don't get why people don't do something about their incomes? Career choices are personal responsibility and certainly cannot be an excuse. Sure now the game is different, APRA is affecting most people...but it hasn't been the case all along.

    So I say, make it happen :)!

    Happy Investing!
     
    Last edited by a moderator: 14th Sep, 2015
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  6. Sonamic

    Sonamic Well-Known Member

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    DT got it. PC bragging rights. 6 x $1 mill properties is better than 20 x 300k properties to who? They're both a 6 mill portfolio. Still good no? It's your overall LVR/ Equity Position/ Net Worth that counts for "trophies". If you're into that. Each to their own. Horses for courses. Do what you're comfortable with risk wise, and choose the path you think best for you. Simple. Even a single 200k IP is a start and better than none. Work your way up. The CHOICE is yours. Who knows one day you may cross to the other side of the equation. The common factor is,

    SUCCESS IS ADDICTIVE!

    We all on here, to some degree, are greedy. You'd be lying if you said you're not. Why work your whole life for a single property when with some effort and education you can own multiple properties? There's nothing wrong with wanting to better your life and that of your family. At all. We all share the common goal of financial freedom and a comfortable retirement. Be it in your 20's or 70's it's the same. We're all here to learn/ teach/ share regardless of whether you're a multi millionaire or don't have two $1 coins to rub together.

    Love you PC Community, apologies if I offend.
     
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  7. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Not offended Sonamic :). Think you missed the point. The point is it's easy for newbies to be impressed and swayed and hence the risk of buying properties that won't help much. We started in Mount Druitt so not suggesting one shouldn't. Someone on the forum bought in one of the worst suburbs of Tamworth because they thought Mount Druitt will have the same demographics...now to me that's naive and buying for the sake of it.
     
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  8. Sonamic

    Sonamic Well-Known Member

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    Of course. But even Newbies need to realise it's not a competition. Asking questions here can help avoid "non beneficial" decisions. Everyone's here to help, yes?
     
  9. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Of course. Who said it was a competition. We are going off topic. Suggest you go back and read the original post.

    May be that's your perspective.
     
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  10. cheekykoon

    cheekykoon Well-Known Member

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    Does it depends on which stage of your investment lifecycle it is? At an expansionary early age, a little bit more numbers of properties work than a little bit more numbers of cashflow.
     
  11. Sackie

    Sackie Well-Known Member

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    Well in the accumulation phase for me, I would want to grow a base as large and as fast as possible but it will need to be sustainable ie not too negative. But if your asking should you focus on growth rather than positive cashflow in the accumulation phase my answer would be yes. That's my opinion.
     
  12. Befuddled

    Befuddled Well-Known Member

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    I wonder if it's because people generally are uncomfortable with talking about $$ with others, hence choose to use number of properties as an alternative unit of measurement? People here are a bit of an exception of course
     
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  13. JDP1

    JDP1 Well-Known Member

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    Yup..same trend in other state capitals... With the exception of Glen Waverley - which is the first point of call for a certain cashed up ( often in suitcases) demographic. :)
     
  14. JDP1

    JDP1 Well-Known Member

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    Yes, I agree. It's just too tough to say x is always better than y etc...just too many variables.
    By the way, being a postcode snob isn't a bad thing per se (not suggesting you are one); as long as one respects others and other properties in different postcodes. A mansion in potts point provides the same fundamentally basic utility as a dog house in struggle st druitt - namely a roof over your head.
     
  15. Mumbai

    Mumbai Well-Known Member

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    It's the good night's sleep that counts, not portfolio $$$ OR number of properties!
     
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  16. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Is that for you Raj or for everyone?
     
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  17. Jingo

    Jingo Well-Known Member

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    Digging deeper into an investor's figures provides a clearer picture than number of properties. For what it is worth, I think diversifying into higher yielding asset classes leads to a more efficient income stream than simply holding countless amounts of resi properties.
     
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  18. Ace in the Hole

    Ace in the Hole Well-Known Member

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    vs whoever dies with most debt wins.

    Some people sleep badly when exposed to relatively little risk.
    Others may be quite comfortable taking on big risks.
    Some may sleep uneasy if they are under performing.
    I don't think anybody would ever sleep badly if they were over performing, unless they were obsessed about it...

    Having said that, a good nights sleep probably indicates you are happy/satisfied/content where you are, wherever that may be.
     
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  19. jaybean

    jaybean Well-Known Member

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    Many when successful will look back in regret and think "if only I had bought more of that".
     
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  20. Ace in the Hole

    Ace in the Hole Well-Known Member

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    I think you would only regret it if you actually knowingly made bad decisions.
    It's always easy to look back in hindsight and say if only I did this or that, etc.
    If you made the best decision at the time, based on your experience, research, skills, and did the absolute best you could to enhance your chances of success, there's really nothing to regret because you did all you could do at the time, regardless of the result.
    If you keep repeating this process, things will go your way sooner or later.
    Results in life are not always immediate.
    There may be something you did 10 years ago, where you put in a massive effort, but didn't get paid off at the time, but sometime in the future you will get rewarded in one way or another if you keep pressing on.
     
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