My journey so far

Discussion in 'Investor Psychology & Mindset' started by Omnidragon, 17th Nov, 2015.

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  1. Omnidragon

    Omnidragon Well-Known Member

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    Hello - haven't been on.

    Had 2 property booms (09-10, 14-15) plus 4 stock market booms (3 local, 1 offshore).

    Property-wise bought CBD commercial, and very inner city places such as Collingwood, Carlton, North Melb. Started with resi, had a bit too, but resi only a small part of holdings at least value wise now.
     
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  2. Omnidragon

    Omnidragon Well-Known Member

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    Yes more zen lately... you don't like it?!

    As can see from post on top, we buy pretty different things too I think.
     
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  3. sash

    sash Well-Known Member

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    Yes mate...still buying the slums.... :)
     
  4. skater

    skater Well-Known Member

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    Interestingly, Hubby & I were discussing an older lady that we know recently, when she was lamenting how they (her & Hubby) would survive on the Pension. He's 56, worked in a Corporate environment all his life in several different Countries earning (and spending) a very high salary. No investments, & currently renting. They've always rented! She's now cleaning houses as she's aware that they've got nothing to fall back on.
     
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  5. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    That is scary stuff :O
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    I don't think so Omni-Delta.

    I suspect the business instinct runs in you pretty deep, and luck was probably a small part of it.

    The Y-man
     
  7. Omnidragon

    Omnidragon Well-Known Member

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    Thanks Y-Man.

    skater - that's scary... on the flip side I have a colleague who's got around $10m unencumbered properties and doesn't like to spend. Got to strike a balance somewhere.
     
  8. skater

    skater Well-Known Member

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    It is very scary. If I had a choice of being option 1, or option 2......I'd like to be your colleague. No cleaning houses for this little black duck!
     
  9. Honeydew

    Honeydew Well-Known Member

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    Hi Omnidragon,

    How did you manage to get 6% yields in such blue chip inner city suburbs? Was this for the residential as well or the commercials ones ?
    Could you share some tips on how you achieved these great results please ? particularly the resi ones ? Thanks muchly :)

     
  10. Omnidragon

    Omnidragon Well-Known Member

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    Every deal's quite unique.

    An example was a commercial. This guy owned the place for many years, charged himself $10k net rent, ran his own business there (these are fake numbers). The agent thought that was about market rent too. Anyway I ended up buying the place for 250k because I really liked it (fake number). The owner-occupier left and went to retirement (in fact I got the place with vacant possession).

    I went out, got a few agents to compete on leasing - gave none of them exclusitivity - ended up leasing it for $15k net a month later (again, fake number, but the proportion is correct). Now it has been a few years, so my net rent is $16-17k (commercial rent tends to go up by 4% pa in strong locations).
     
  11. Honeydew

    Honeydew Well-Known Member

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    Oh that is so smart ! I'm very surprised that a professional agent would not know what the standard market rent would be for a product that they're selling and getting a commission for based on the % of the sell price !

    Is this common for commercial IP or was it a buyer's market with very little competition?

    Also, if you don't mind sharing, what strategies did you use to turn a blue chip resi deal in melb to yield 6% ?

     
    Last edited: 22nd Dec, 2015
  12. Omnidragon

    Omnidragon Well-Known Member

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    It was probably a so-so market. The agents only go by comparables, don't always have a good grasp of the market.

    Re resi as I said each deal is unique in its own way - some are simply a function of buying in much softer markets. Anything bought pre-2010 is probably 6% net yields quite easily. You think about the fact that you're now buying at double/triple the prices, and you're still getting 3% net yield. Reno is important. Don't think I've ever had a buy and not reno situation.

    Another example I've encountered was being able to subdivide/develop in resi is another big factor. Some of these 80sqm backyards with rear access I have - you could build say a 3-storey townhouse for $300k and sell it for $1m easy. Some sell for $1.3-1.5m in hot market.

    Ocos, not sure if the same still applies today - function of me not buying much in this market either.
     
    Last edited: 25th Dec, 2015
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  13. Honeydew

    Honeydew Well-Known Member

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    thank you for sharing :)