newbie - please be kind...

Yes. It is metro and it is a long way out, but I follow whole metropolitan area for both my investing hobby and for my line of work.

Not about me though, review the resources I linked earlier in the thread.

 

Hi @ozdrjohn
Welcome, it sounds like you have properties in a diverse number of locations. Are you considering other states to avoid land tax?

What's the attraction to apartments in this price range? Too cheap ($170-275k) to mostly play in the big markets Sydney, Melbourne, Brisbane or Perth. I would have thought the other bigger centres especially the major regionals were house markets, whole unit blocks and duplexes the exceptions?

 

Welcome. Do you have any observations from your finance background on what property investors do well and not so well?

 

hi xen

hi xenia - as noted above, low end 2br apartments with yields 7% plus is what we're after for income replacement and happy to look at adelaide. phd in finance? looked at pattern recognition in futures markets and applying blackjack betting strategies to determine position sizes in derivatives markets. tried to solve the problem of if you have a model that makes profits, this was one solution to determine how much money was needed to make that profit, so you could determine percentage returns and compare returns with other asset classes.

 

hi hugh - like the lower end as always easy to get tenants, easy to sell if required and allows for substantial diversification of revenue streams and geographical locations. re land tax, doing this for income replacement with no intention of selling so bought through our company. yes, we forgo cgt exemption on the sale, but we do not plan on selling any (in our lifetimes anyway!). this also means that once we get near land tax threshold we simply set up another company. bit odd but works for us and my jedi knight accountant.

 

Mmmm, not too sure about other investors but what works for us is coming up with a plan and work it. for us it's all about risk mgt - that's why we focus on lower cost properties where we can get good in hand returns each week, must be tenanted with proven current returns (no 'could rent for' allowed for us) with good geo diversification and at a price point where a 10-20% fall in value would be relatively insignificant for the portfolio value. thats our plan anyway...

 

good on you xenia!!! as you know, re phd's, many are called and few are chosen (was 23% success rate in biz when i did mine). med science to real estate, now that is a jump!! for anyone else reading this, if you are considering doing one, there is a big gap in real estate research published in oz and would be plenty of scope to do one on this field.

 

2? that's just showing off!! though still shy of broadcaster robin williams with 3 - mad! what fields?

 

sorry, was there a link posted - i cant see it...

 

Hi @ozdrjohn
I like the sub 300k price point and plenty of diversification as well.
I was just questioning the strategy of 2 bdrm units in regional centres and smaller capital cities. I prefer houses in these type of locations as affordability is less of a problem and that's usually what the demographics demand.

 

Not sure about that one...

 

That would be an interesting field to study and no lab rats .
What is your strategy dr John? I know you said 7% yield and constant cash flow.
This could typically mean continued capital growth. Do you factor that in at all?
Love to hear your views.

 

Hello!!
I am Melanie Smith. I am working as a writer at Binvested.com.au. My focus is Property Investment and Wealth Building and passionate in helping people to live life on their terms through Property Investment.

 

Hi
Hate to tell you but you spelt your name wrong.
the nathan birch thread might be an interesting read for you. say hi to NB for me

 

Hey Bob!
Thanks for pointing out the Name part.

 

What about a block ?

TAS - Tasmania - check post on this to this property

Sold Price for 14 Erina Street East Launceston Tas 7250

oh ... sorry ... it's sold

Cliff

 

Who cares...she's hot...what was this thread even about?

 

Is this a new and improved bayview back with a vengeance
.... and she didn't have that profile when i replied i would have been inclined to let it slide. We can't all have the looks and the brains

 

No worries. Happy to help, how is nb going? Are you back online in stealth mode? I won't tell nb your little spelling mistake

 

Never improved...just; back. Was missing you too much, Bob.

The void in my life away from here was too great.

(sorry to all those who hate me and have me on ignore who would like to see the back of me).