Money money money

Discussion in 'Introductions' started by joel, 11th Aug, 2016.

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  1. Beano

    Beano Well-Known Member

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    Yes I agree too
    Curious but what do you consider "large" ?
     
  2. Bran

    Bran Well-Known Member

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    As the wise members of the forum say, property isn't about property. It's all about finance and making that money work for you. There just happens to be a house in the middle.
     
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  3. Bran

    Bran Well-Known Member

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    I need $10m unencumbered with a 5% yield to achieve my goal (passive 500k pa). Cant see it happening :/
     
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Commercial property ;)
     
  5. Bran

    Bran Well-Known Member

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    Working on it, next month ;)

    But I'd love you to elaborate!
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Mindset I believe
    Many different streams of recurring income make this more likely than a sole focus on one asset class

    Ta

    Rolf
     
  7. MTR

    MTR Well-Known Member

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    Yes, agreed, but you are a developer, growing a largish portfolio $6-10M+ resi property holding forever will be far more difficult today for investors with current financial climate. Unless investors do something outside the square, or buy in the right markets and the right product its just going to take a lot longer to reach financial freedom. The mentality of continuing to accumulate will only make sense if you have growth IMO, yields are currently at an all time low, scary stuff really and those cash flow cows somewhere in whoop whoop are really not going to make you rich, unless you are Nathan Birch of course
     
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  8. MTR

    MTR Well-Known Member

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    I wish you would start a thread on your CIP journey:)
     
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  9. Eric Wu

    Eric Wu Well-Known Member Business Member

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    it really depends on one's goal. if one wants $100k/y passive income, with 5% return, it means one will need to have $2m cash on hand. In order to have the $2m cash, a very simple way to explain is that " build a $2mil portfolio, wait for it to double to $4m, then sell them, pay down the debt, then you have $2mil cash". however, they are much more variables to consider if you research a bit more. that is part of the reason why we are all here to learn from each other. at the same time, pls always have fear in mind, which will help to keep head cool, and potentially make less mistakes.
     
  10. Beano

    Beano Well-Known Member

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    The easier way is not to sell down but to be patient and hold
    Rents do rise
    It is just as easy to increase your surplus from $500k to $1m as $50k to $100k
     
  11. Beano

    Beano Well-Known Member

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    Higher yields (substantially) are achievable!
     
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  12. Beano

    Beano Well-Known Member

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    My journey has a lot of luck involved that can't currently be repeated (buying when yields and interest rates were high ...and still holding when interest rates fell) in this low interest environment.
    But this year i have still achieved 6.5pc Net Yields with a interest costing of 4.21pc so a profit margin of 35pc (of the rent) so i know it is possible
    Rather than a boring story I would rather show recent actual deals !
     
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  13. Beano

    Beano Well-Known Member

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    But I do suggest investors not to be scared of large deals but certainly do the "what ifs" (interest rises, tenant vacancies etc) ..this will guide you into the investments
     
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  14. MTR

    MTR Well-Known Member

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    Thanks
     
  15. melbournian

    melbournian Well-Known Member

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    This is true - accummalation to say i have 10 or 20 properties, chasing yields for numbers buying in areas that you think will take grow like sydney or melbourne will take much longer etc. i don't see buying without a purpose or possibily to offload with plans or develop. Having property portfolio is all about chopping and changing with what fits. Within last 4 months, i already purchase 1.1 million worth of properties which i is now valued at 1.4 million approximate. if i went to queensland to do that, would i have gotten the same just to chase yields and because it is cheaper ?
     
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  16. regionalpropertynsw.com

    regionalpropertynsw.com Member

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    I've had trouble getting finance too... I found a great broker who was willing to look at things differently to get me what I wanted. I also had to target positive cash flow regional property for a while.
     
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  17. MTR

    MTR Well-Known Member

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    RAMS Lo doc
     
  18. Flipper

    Flipper Member

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    What an intro!

    Eerily familiar to my background.

    Are you sure you aren't me?
     
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  19. joel

    joel Well-Known Member

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    I do have a long lost twin, we were separated at birth..
     
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  20. Beano

    Beano Well-Known Member

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    Yes i agree with you
    The difference (between small and large property ) can becomes very large in $$$ after a few years
     
    Eric Wu likes this.

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