Shopping Spree Hunt

indeed

 

Congrats and well done! A great effort.

Have your offset accounts nicely armed up with funds, when you go shopping be sure to leave some decent buffers in the offsets for rainy days. But, while money is this cheap and we aren't (yet) in any recession (though that looks likely), adding a couple more sounds like it is well worth it for your strategy.

 

Thanks. Most likely Brisbane inner to middle ring development sites. I usually focus on niche markets that I understand well so I'll be sticking to that for now as I know there are more deals that stack up out there. I don't really look anymore for deals, when my town planner and architect know I'm ready to buy they just drop deals in my lap that they know are likely to be good deals but they cant develop themselves. Its a win win really, they provide the deals for me to look at and if I decide to go ahead I just engage them for their respective works. Also a good way to build a team with strong relationships I've found.

Thanks @House, no not yet mate. Haven't really had any time to relax just so much going on at the moment but we plan to relax on NYE big time.. not long to go...

Yea I guess so but buying retail stock is not really my thing.

 

@albanga haha cheers! I remember last time we spoke you were doing just that, having a nice mojito Taking a holiday now mate is out of the question just up to my eyeballs in things to do but not long to go before I'll have some time off. With regards to debt we're very conscious our overall debt and we have a lowish LVR with large buffers so we should be ok for now.

 

Thanks @Tony Fleming. Looking at Brisbane still mate. No we haven't done any value adding to those deals yet but in the works very soon. Three of those deals are sites, so when value is added to them, the further return will be magnified by approximately, 1.6-1.8m.

 

@Eric Wu great stuff mate. Those puppies would have done really well for you! Having the GF option makes your place more valuable too. Ours is also GF potential, we made sure at the time by buying homes where the land content would allow for this.

 

Banks are usually conservative with their valuations and most often value property below what it most likely could get if it was for sale (to reduce their risk). So all the valuations, I think were either on the money or a little under, when compared to recent sales for similar stock, ie the actual market. I guess we all have to invest according to our risk profile. I do think though that the mindset share investors have and property investors have is very different. Usually the people I meet who come from very strong stock market backgrounds/mindsets, often I feel approach property investing in a way that perhaps hinders their approach/outcome. I think the psychology of the stock market and the psychology of real estate is two different beasts.

 

@Shankiedoodle My approach to buying , whether for long term B&H or for development is pretty much to buy 7-9 oclock, BMV (I am very tough on this point, I will turn down 20 deals until I get the right one), and must be able to add value in the future. This strategy suits my situation, risk profile and goals. Also purchase deals in areas with good drivers for growth, eg infrastructure, employment, population growth, transport etc.

 

Thanks mate, appreciate your advice. We are acutely aware of the importance of buffers and risk mitigation measures in place. Each deal we have has at least 2 exit strategies with a cash buffer allocation for an emergency.

 

Also, I'm about to do the final write up with numbers/pictures on my "City of Parramatta duplex development" thread. I don't have valuations done yet but it's looking very likely that that deal will have another 1 million dollars in equity to extract...

I'll update that thread soon.