News.com.au 4 homes by 32

so we were due for one of these.

‘Throughout the whole process I’ve put very little savings in’

But how do people who are more focused on real estate feel by the looks of what she has. Looks like 4 interest only city apartments to me?

Now having to deal with increasing costs, would love to have a close look at her finances. She much be 2-2.5 mil on debt. I can’t imagine her business pays more than 100k.

Are these the ones we worry about in a slowdown?

 

Time to cut this tall poppy down!!!

 

As an owner of 4 apartments surely she should know these costs are built into the rent she pays?

 

I was hoping to get some balanced responses to see what people thought. But sure - we can do that.

 

Lifetstlye blog
Wedding something
Crypto currency trader
Digital consultant
Jewelerely desginer


These all seem occupations/hobbies/titles hat could be earning nothing. And the fact that she is claiming to be all of thrm may mean she doesnt earn much

Edit: "While Ms Rossi does not describe herself as a real estate expert, she said she believed there was still money to be made in property despite an expected downturn in some parts of the country."

I love it how she says she isnt an expert but the next line she is dishing out expert opinion

 

Although that is somewhat true. Most people I know in life who really make it work a lot of angles. Try businesses, houses, etc. all different ways to make bank. I don’t have any issue with any of that. I’m sure that the article is also an attempt to get traffic to her blog. Good on her for that.

I’m mostly interested in how she seems really confidant about her 4 apartment strategy. 1 is in Canberra. By the looks 1 at least is Melbourne city.

Also, for those who run yield strategies - do you do interest only or p and I? What’s the point of being cash flow positive on a yield property if you don’t pay the debt down? If it’s yield focus you are unlikely to free up new capital?

 

Her position is probably better than what the bears think (probably decent growth on the earlier Canberra stuff) and worse than what the newbies think (body corp fees, etc). So no one will be happy. Except her as long as she gets past the next cycle.

A lot of unknowns. What does her partner make, for example?

 

I have no issue in what she does too. Ive done multiple things before too. Unfortunately i sucked at most of them.

Her 2011/12 purchaes depending on where they are may have shot up in value. Which can be refinanced or pulled out.

LOR was a term used a lot a few years ago on ss.
I too thoguht it was pretty cool and tried to go down that track but i have found with maintenance vacancy rising insurance costs rate rises even with rental increases (i havebt raised my rent on hardly any of mine)
Unless you have very low lvr then its not something you csn live off easily or retire on and the income is very sporadic

 

Standard buy, reval, extract equity, buy next one, repeat strategy. Easy to do in the pre apra days, not so easy to do now with servicing rapidly running out after a couple of buys.

 

I would say so. She does admit she is a "high risk" investor.

Her portfolio was positively geared when it was IO. She has been forced to switch to P&I, and she now says she is negatively gearing. This means she needs to have capital growth to offset the lack of rent.

This is potentially why her last property she brought last year is for "capital growth". I don't think she brought in Tassy, and every other state and territory, property prices are falling......

All we need now is a couple of interest rate rises. There will be a limit to how much her other businesses make to prop up the cash flow on these properties.

 

I love when these threads come up. You get 2 kinds people

1) The people on here who will hate and try to rip apart her story. There seems to be many that hate seeing young people do well.

2) The people who will congratulate her for having the guts to do the investments and her accomplishments on raising a child + have numerous income generating businesses. Not easy to do for a young person.

 

I don’t think my post was either of those two. I’m not really interested in her. Just the strategy.

I do agree with the above about her husband though. He could be a doctor making shedloads which changes the whole game.

 

Switching to P&I can put you in negative cash flow but won't make you negatively geared.. I think she was talking about her IO loans being penalised with higher interest rates.

 

Im all for people getting out there and making a success or at least having a go vs bleating about how its all impossible.

Much of the negativity/skepticism is these articles are 9/10 times advertorials for whatever investment group, buyers agent, broker etc business they operate or work at (disclosed or otherwise) with numbers that dont make sense and wishy washy information which doesnt stand up to scrutiny.

 

She features in this article from the Australian Financial Review with more information:
Property investors squeezed by interest-only credit crackdown

 

Perhaps you need to out yourself....you claim to have the runs on board...why not come to Taku's city meet-ups that way I am sure you can pass on your wisdom at such a young age.

It is not tearing people down..but also being able to back up your claims...and not only in instance but over years....that is what brings cred. Otherwise it is just a flash in the pan.....I have seen lots come and go...

 

4 properties by 32 is 1000x better than zero properties. There's no reason to criticize people for having a go and working towards financial freedom. You might be successful but it doesn't mean that someone doing it differently will not be.

 

Can we step out of discussing the individual. Focus on the effectiveness of the strategy and structure or the setup in comparison to the current fiscal environment?