Strategy over the next 12-24 months

....thinking what an amazing ride property investors have had over the last 4 years, bull markets, in particular Syd and Melb

In general property is making Australian investors rich.... where from here? how are you going to continue making money in 2017/18, can you repeat what you have achieved over the last 4 years...thoughts on this?

MTR

 

Sit on my hands.

 

lol, ok, I think I am going to have to work a tad harder for my money

 

I've got a relatively simple strategy, based on the belief that CG that we have witnessed over the past 20 years may be way more subdued going forward.

My small fry strategy is to quickly pay down the PPOR offset enough so it can be positively geared.....

Then buy PPOR 2 and rent the old one out. Move the money around so I'm paying mostly tax deductible interest and keep shoveling money into the offset untill I'm in a safe position to buy PPOR 3 and turn PPOR 2 into an IP....

Should be able to do this every 4 years? And end up with a few IPs?

Not exactly a barnstorming strategy but the SANF factor is high and it doesn't depend on CG.....I'm not going to say no if any CG happens but if it doesn't... well, that's ok too....

 

Considering I got SFA done in the last 4 years, I am planning a lot more. We are nearly finished the 3x1 to 4x2 conversion so that should be rented out soon. Pre-start is nearly complete on the townhouse build so that will be our focus for 2017. Once that is rented I will get my borrowing capacity checked again and see how much I am allowed to do in 2018

 

Gonna be a flat out year with 2 separate projects building at once (tried staging them but with council delays on one and late land titling on another means they'll both be building together).

Expecting permits on another to come through in Feb, but not planning a start on that until the second half of this year.

Also about to sign up on another H&L but that wont title until 2018 sometime.

Planning on selling 1 possible 2 also this year.

Business as usual I guess....but keeping a close eye on the market sentiment

 

Establish on call anytime credit facilities, accumulate cash, yet purchase any property deemed attractive enough an investment funded using sustainable debt levels.

 

I am inately lazy....waiting to collect my $3m off Brissie....outer Melbourne ....Maitland/Gong... and evetually Adelaide. Its all apples....

 

Next 12 months will be reducing PPOR as much as possible.
Also currently studying within my job to increase my salary 20-25k by September.
Wife will also finally pay off her HECS debt come tax time.

The 12 months following, HOPEFULLY buy another property, servicing dependent. Otherwise get back into shares. So many missed opportunities I've been watching.

 

In the last 12 months I worked hard to considerably reduce my PPOR debt (currently 5 months ahead in repayments).

Offset is currently sitting at $82k, should be $100k come June. The plan was wait out this year and see what the market will look like early 2018. But as plans change so have mine. I am now confident enough to acquire my first investment property this year. There's just too much opportunity in Melbourne at the moment to let it pass me by and not get in on the action.

Bring on 2017!

 

Finish reno on current house over next couple of months, design new kitchen for new PPOR (gonna be amazing, with gas strut windows and servery - can't wait!) revalue and possibly look for a dev project after that.

Also focus on paying down PPOR as quickly as possible.

 

Work on business. Hoard cash.

Won't look at buying any more IPs for another 5 years.

 

How did your maitland investment go?

 

How come no more?

 

Where do you buy for solid capital growth in Australia? We're at the top of the market in Sydney and Melbourne or already in dangerous territory at the least. Brisbane is a possibility but yields are already so low and rates look to be moving up. We had the opposite of that drive Sydney and Melbourne.

You can go regional and maybe get something cashflow positive but how positive is it really? 1-3k a year? Boring. Then if rates move up your cashflow is gone anyway.

IMO now just isn't an attractive time to enter the market with a view that you will buy and hold. Anything in Sydney / Melbourne / Brisbane is going to be negatively geared, you'll be losing money for a long time before you see growth. Then you will need to do a renovation to update the place before the market bottoms out, rents increase and green shoots start to reappear....In around 5 years from now.

 

Makes sense @Biz. You have 5 years to be ready to make money in the next round of booms. You should do very well

 

Sell another Sydney property in new financial year. Sold one at the end of last year. Paying out remaining non deductible debt, investing in shares. 6% dividends with no tenants, property managers, repairs and vacancies to deal with.

 

Continue buying property in USA, will increase holdings

Flip at least 3 properties every 4 months and reinvest profits into USA property market

Developing 5 townhouses in Atlanta, build and sell in 2017

Continue buying commercial properties in USA/Atlanta

Also investigate other opportunities/markets in USA, perhaps Chicago, Indiana

 

Build capital to put towards future development. Buy @Bran a beer if one play works out well. Wait for market growth in Brisbane.

Expect to see another $50k to $100k growth in my PPOR in Sydney. Qtr 1 2017 will be a good indicator if this is realistic.

Continue learning.

More travel. Itchy feet again.

 

About to settle on land in Brisbane and start building so that's 2017 covered.
Already paid deposit for OTP townhouse in inner Melbourne that will settle in 2018.
Wait out 2019 and CG build up on other properties then dive back into acquisitions in 2020