My Victoria Sub-Portfolio

I have had a few people ask me how my places in Victoria are going.....so I thought I would do a quick post. Victoria represents over 22% of my portfolio..and is the jewel in the portfolio. Currently I have the following via combination of straight purchases and H&L.

Melb North - 3x2x2 house H&L built for 301k..current value 460k
Melb West - 3x1x1 house bought for 130k...now 480k......3x1x1 bought for 170k now 550k
Melb Northwest - 3x1x1 bought for 155...now 450k
Geelong - 3x1x1 H&L being built for 257k now worth 360k........build 3x2x2 buit for 337k now 445k
Melb Southeast - 3x2x2 being built for 325k....worth 460k
Land yet title - 1 in Western Melbourne and 3 in Geelong...one is JV with my partner.

So that is total (on already settled land) of $3.2m...on a spent of $1.68m.....I am happy with that!

I am expecting the value of the total portfolio to hit $5m plus in Victoria once the 3 land settlements and builds are done. The numbers should still keep my LVR at about 50-55%...as the total debt should be $2.5m vs $5m in assets......I am not too unhappy as this was done in about 10 years.

So the moral of the story is people overestimate what can be done in 1-3 years but underestimate what can be done on 10 years.

 

Well done and thanks for posting

 

But Sash haven't you heard?? you can't make $$ doing H&L... Too much land available.. Have you google earthed these areas you're posting about?? Surrounded but paddocks

 

that's a good representation and also can concur that it is happening Melbourne wide. the H&L markets are booming with many queues lining up to buy from my previous visits.

Though lot of ppl will keep throwing stones - will just ignore it.

For the pro stimulus theories - hospitals, underground stations. Even the westgate expansion to egate ,Tullamarine expansion, railroad crossing removals will see billions spend in at least 5 years. By the way transurban is paying 5.5 bil for the westgate tunnel to egate . Education - the economic output from Melbourne University is 1 billion annually which is far more than most other universities aus wide.

The most stupidest comment I saw was someone contesting of a place in Werribee with similar stats prices 2009 -2015 without thinking that maybe the werribee didn't boom till 2016 same like many places such as Pt Cook which din't really move till 2016 as well. It doesn't matter if you bought it 1917 and sold it 2017 - you can't just normalise the growth over the period and say it took a 100 years to grow. that's basic year 10 maths.

Moral of the story - many can't handle the truth and start to throw stones at other places without proper reasoning.

 

Yes mate.... ......lucky that message was in a bottle..........it has not reached me yet.....

 

Well.....some truth to it...issue is that getting land to market is an absolute nightmare!

It is taking about 18 months to get land titled....they will tell you it will be ready in 9-12 months...but the reality is different.

So yes lots of land....but try getting past the Mohican gauntlet of councils and demand does not keep up with supply...the smart investors know this....the people who don't understand this keep bagging it like @melbournian said

 

I think I recall the conversation. Some just don't get that growth is not linear. Markets can be flat for years and suddenly make 20-50% gains in 24 months.
Those that got in 10 years ago, it would've taken them to 10 years to see those 20-50% gains. For someone who got in 24 months prior, they would of seen the same gains in 24 months. Pretty simple really.

 

I dont like you sash but i must admit that is fairly impressive. Well done. Go and enjoy your retirement!

 

Bahaha!

@sash people don't like what they don't understand. It's been that way since the start of time.

 

Brilliant work Sash

 

Its okay..I am pretty thick skinned....you have to be in this business.......not quite ready to throw the hat in...thought it is starting to enter my mind...but I don't think...the forum could handle me on it 24x7.

Once Brissie and Adelaide...that would be the game changer.....it been very Sydney/Melbourne centric...but in the next 5 years...it change...

 

Ta MTR....Melbourne is one of your favorite markets also...twice from what I understand.

 

Retirement on the cards?

PS
What's this someone does not like you....LOL

I guess they dont know how many people you actually mentored/helped over the years free of charge.....

 

Nah...to much fun to the moment...that could change....

Perhaps you should post your deals..Broady....Ringwood....Reservoir.....they were pearlers.....too! Huge amounts of gain in less than 2 years....

 

I'm one of those @sash has mentored. Provided some excellent advice.

 

Thanks for the post Sash.

Sorry I don't really know of your history as I am pretty new on here. But from your post, is it correct to say your general style is new areas with H&L packages off the plan? Thanks.

Out of curiosity, what was your selection criteria in buying those houses (and land)?

 

No only of the strategies..if it is OTP is only for land.

H&L in the right spot on the cycle is very profitable...a lot harder now...

 

So H&L you bought established houses?

With land only... assuming they were new estates...did you use any specific builders?

I'm looking at H&L packages and thinking about a 3/2/2 style house.

 

Nice work Sash!

 

Beautifully executed, well done! Do you mind sharing the years of construction/buying and the yields?

I really don't get when people talk about luck with investing, if it were luck you would be stumbling and falling as much as you are rising and possibly make big mistakes along the way. But seasoned investors like you have made measured calculations in areas the worth of which others questioned at the time. You went against the flow and made good calls.

You have done well!