Making money from property in 1-2 years

Discussion in 'Investment Strategy' started by Magic, 9th Aug, 2016.

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  1. Magic

    Magic Active Member

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    Hello everyone,

    If you were given a challenge to make a profit investing in property with a tiny 1-2 year time frame, can it be done?
    If so, what's your strategy?

    Goal is to achieve a 10% profit after all buy in/sales costs.
    You have 500k to spend on your strategy.
    Walk away with 50k minimum.

    What would you do?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Invest it in listed property trusts.
     
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  3. Redom

    Redom Mortgage Broker Business Plus Member

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    This is speculative type investing, but some like to do it. I don't think its worth the risk, but you can do this via:
    1. Land purchases in new estates, and on sell
    2. OTP - i'm not sure where you can find the returns.

    In Sydney there's a bunch of foreigners who can't settle at the moment. Their still comfortably making 50k+ profits from contract value on their investments inside 2 years.
     
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  4. Big Will

    Big Will Well-Known Member

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    greater risk = greater rewards but also greater losses.

    As you are after a greater reward you will need to take on greater risk.

    Buy in a regional town before it booms and you will easily get your 50k, however it nothing happens you get nothing.

    If it was that easy to make 50k (after costs) from 100k investment (or less), everyone would be doing it....

    I find the quicker you get rich the quicker you go broke :)
     
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  5. Joshwaaaa

    Joshwaaaa Well-Known Member

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    subdivision?
     
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  6. hash_investor

    hash_investor Well-Known Member

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    This is not what people on this forum do. Property investors enter the market for a long run building their asset base and that is what they advise others to do. They exit when they see right / better returns else where.

    If you have to exit in 1-2 years time, property asset trading is not for you.
     
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  7. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Buy shares in REA Group (realestate.com.au)
     
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  8. bobbyj

    bobbyj Well-Known Member

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    Start with 100k, lose 50k

    Walk away with 50k

    Much easier
     
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  9. JDP1

    JDP1 Well-Known Member

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    I would agree, property is suited to a significantly longer timeframe than 1-2 years. The shorter its held, the higher likelihood its seen as speculation.
    If the timeframe is 1-2 years time, I would suggest shares maybe.
     
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  10. Travelbug

    Travelbug Well-Known Member

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    Buy in Sydney in 2012. Sell in 2014.

    Buy/reno/sell?
     
  11. Magic

    Magic Active Member

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    Do you think the process could be repeated today, and still make a profit?
     
  12. Magic

    Magic Active Member

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    maybe, good idea
     
  13. Magic

    Magic Active Member

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    Anyone that bought in Sydney would have made profit just holding. Did this method work for you?
     
  14. Magic

    Magic Active Member

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    Didn't think of this. Thanks
     
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  15. The Falcon

    The Falcon Well-Known Member

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    Buy WBC stock. 8.6% grossed up yield and a little growth. Perhaps. Roll the dice.
     
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  16. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Rezone...
     
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  17. Sackie

    Sackie Well-Known Member

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    Its not my kinda thing but its actually not that hard, if you were obsessed to achieve it.

    I would choose the strategy of big time BMV + cosmetic reno and sell. Maybe 2 deals in the 24 months. Not impossible at all. You'd probably end up with more than 50k profit imo if you were obsessed with it.
     
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  18. Redom

    Redom Mortgage Broker Business Plus Member

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    Sure, somewhere in Australia. Not sure where though. I don't think so in most parts of Sydney.
     
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  19. Magic

    Magic Active Member

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    Interesting. Happy to put time into a strategy that works. How difficult would this be, where do you start?
     
  20. Magic

    Magic Active Member

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    Surely people here buy and profit in shorter time frames than just buying and holding.