My 2018 investment summary

"buying underrated properties in tough times" this is my long term goal for inner city low rise areas. I want to replicate that Sydney suburbs like kirribilli model of never going to ever be significant development of high rise with limited supply and fantastic location to CBD. Brisbane imo has some fantastic opportunities.

For myself, being also service industry providing building services design(to the low end of the market for developments up to 50units mainly) i just dont like the business model of doing the work now then waiting 3+ months to get paid. Typically once you invoice, even after 2-3 months you may get only a portion of that invoice and they will hold you to the rest for 3-6months again. Current climate making it even worst as builders will be holding money to ride out this down turn.

On the positive i have made alot of contacts and networking in my line of business as i get to work with the developers / project managers directly. My goal is to get leverage off these relationships with business in future.

For your lending "Keep lending excess money and borrowings to developers" what interest rate are you charging?

 

I generally charge 12%
Only for subdivisions in north west Sydney.
I go to 10% if they pay the interest monthly and not on completion of the project.

 

thanks for the insight!

 

Thanks car tart. I am also long term reader here and lazy poster. I am also in building service industry similar to Dsign. Pretty much have common interest like Dsign. Your posts were really helpful, mainly your pathway of investment. I am still in the reno territory and mainly holding them. It appears I need to sell when I reach the target- something I need to start to do after reading your posts. But most of your investment you sold after gaining 100% return- mostly holding over 5 years. Have you sold your renovated properties with such gains too? I am holding them with just 25% gain within 2-3 years. I am also quite tempted whether I can reach my goals looking my current situation. Spent much time with studies, and realized little late so started to sharpened my skills last couple of years. Just wanted play with tall towers in my 50s, just left with 15 -20 more years...

Also, observed most richest people at least have 2 marriages... Congrats for your new wed.

 

No. I did not achieve 100% gains on the renovations I usually looked at 30% increase before selling.
Also I am not proud that I had a failed first marriage, I tried everything to keep it together but as time went on I realised it had failed and I had to start again. I would rather have had a failure in my business than in my marriage. Finally wealth is simply a number. I don’t own a very expensive house, my everyday cars are not prestigious, if I had less than 10% of my current wealth, I could still enjoy the same lifestyle that I live today

 

Owning and renovating tall towers can be pretty risky.
Would you not be better off with low rise buildings with higher land to building ratio ?

 

Yes, renovating highrise towers are risky. I wouldn’t do, aim to build them. I don’t have financial ability to own/ build them yet. Just renovating small houses with land component near inner & middle ring region. Now just targeting within Brissie, will do in Sydney by 2022. Helps me to sharpen my skills.

I like tall towers, designed dozens of them including iconic 280m tall towers. Achieved in my 30s, most people in this field would have achieved in their 50s. I know where to cut costs, not like Opal. I can see where the problem was in opal as I know the team involved- they are reputable. But this will test their credibility if it is not construction fault.

Highrise towers require full planning which could reduce the construction cost dramatically. Currently, there are too many inefficiencies as too many people involves and too many hands change throughout the D&C phase. So mostly things are inefficient designs and no one performs proper cost benefit analyses. The entire industry believes the one who speaks too much is the one who is smart, but actually it is not. I see huge potential there. That will be my play ground.

 

Not sure whether your holidays involve going away/international travel but given the amount of breaks we've taken in the last 3 months (I'm actually exhausted from the packing/unpacking), my personal preference would be say, travel 5-6 months of the year via a 2 month stint (Jan-Mar) and a 3 month stint (Jun-Aug).

Going away too frequently on shorter trips can get a little tedious. A lot of the fun when it comes to travel is the 'looking forward/buildup' phase.

 

I agree. But I miss my kids and grandchild and my parents are quite old so I like to keep in touch. Plus my wife has a 20 and 23 year old and it’s good to see them at least once a month.

 

I was reading about the Grand Hyatt NYC refurbishment by trump ...quite a big project and then all of the $100m" modernisation being removed.
I sort of wonder the economic's and the risks of high rise.

 

"sigh" - every 2nd millionaire in Oz is on PC I feel!!!