Stratergy That has worked time and time again ???

Building businesses, you need cashflow not equity for financial freedom.

If you want to do with property, it would be trading property (developing, renovating etc) that would do it - these are also businesses and they create cash flow.

If you want a buy and hold property portfolio, you need cash to hold it and more cash to hold it through down turns.

 

The biggest issue I found with dual occ's were that most had unrelated tenants and didn't have evidence of meeting building code requirements on fire proofing. One place had a 7.5% yield but was two seperate tenants, detached dwelling built within 900mm of boundary but no fire proofing. We only found one place with related tenants but only a 5.5% yield.

I would have gone down the dual occ route had we been confident of finding related tenants each time the property became vacant, my concern was we would be narrowing the tenant pool too much and just starting out we want to reduce the chances of a high vacancy rate.

Yes we were looking in Brisbane, thought about renovating but too hard to manage from NSW. It really comes down to the stage of the process we're at. We have a fair bit of reno experience, last place in NSW was a dual occ but this is first interstate purchase so we are playing it a bit safer. We'll take on a bit more risk further down the path.

 

Thanks mate, it's all good, almost there. by mid May I should be 100% back to normal and living life (like really living, not existing like I used to) .

Edit: And we are getting all our ducks aligned so loans are moved and ready to go, I want to be in a position that the day I come out of hospital after the final surgery, I can get on the phone and start buying, I don't want to just start the application process at that point because that will be more delays.

 

Your inspirational. Honestly you are. Going through all that and in the end STILL passionate, making proactive plans and still going for your dreams.......inspiring.

 

I wish you the very best. Yes, experiences like these change your life.

 

Thanks guys, your thoughts are appreciated, I approach it the way I do out of my own need, it's not strength its my own needs. See, when I was diagnosed my world literally fell apart, this illness took so much away from me. Everything I do now is about me taking back control, not letting it stop me. Its all about me making the choice to live, and not let this beat me . Every time I make a decision for my future which sort of assumes I will survive, I kill the cancer off a little bit more .

I don't want to turn this thread into a "Dan's unwell" thread though so lets get back to strategies . If you want to keep up to date on my journey, I put public posts on FB after each round of Chemo to try and raise awareness (end encourage people to get a camera up their rear end ) here Dans Facebook

 

I'm a tortoise investor: buy and hold. I just got lucky.

 

Yah. I met @Dan Donoghue for coffee and was greatly encouraged by his outlook in life.

 

Don't want to sound negative, but for me I feel that sometimes when we are aggressive with our acquisition phase, we lose sight of what is so important. No money in the world can replace a breakdown in a relationship or with a family member.

 

I HIGHLY doubt you 'just got lucky' doing so well.

 

Agree @larrylarry. The people we mix with can have a significant impact on us, both positive and negative. I only socialise with people (not counting family) who are positive, going for their dreams type people. Not interested at all in the eternally pessimistic, half glass empty type people who take pleasure in criticising others who go for their dreams.

 

I find 90% of the people telling you how to do it, are the ones who haven't done it, That's why I like this board, everyone on here is of a similar mind set on investing and making a good future for themselves, basically this forum is the other 10% .

It's that 90% that also sit there and complain how you were "lucky" when you made it happen.

 

If I had to guess, I'd say more like 1-2%.

 

As far as dual income properties go you need to be selection regardless.
What starts off with a cashflow play can quite quickly turn into negatively geared proposition..... if you chose the wrong location it will take longer to rent, longer to find suitable tenant.
Same.....if you get the configuration wrong it could also end up in disaster. Two separate entries, privacy etc.

From my experience buy in areas where there is a demand for this product and income.

MTR

 

Just had a quick look, fantastic stuff Dan you seem like a very strong person. I will get rid of some people on FB to add you- reached limit so can't add any more unless I get rid of some of the ones I have.

 

You're too kind Xenia, My purpose to documenting (via FB) is to raise awareness and hopefully help prevent other people going through this, I also hope it can be a resource for anyone just starting this journey, I didn't really find anything that would discuss the ins and outs of treatment, everything was very medical and matter of fact, I hope my personal experience can guide someone through what is to be expected as treatment continues.

 

Hey Dan,
I'd love to see the 10yr plan as I'm in a similar situation (10yrs or so to passive income but just started). I'm having trouble with the 10yr part though - buy and hold appears to need much longer to get the passive income going from simple growth of rent, yet APRA changes seems to have stymied the buy-reno-hold-reval repeat cycle and limited to a much smaller number of properties which then limits the 10yr sell-off opportunities since one may only have 3 properties!
So I'm keen to see the 10yr plan if you have any thoughts and details?

 

Start young, buy a house that can be dual occed, rent it and pay it off as fast as you can.
As soon as you can save a deposit and costs after it's paid off, buy another house that can be dual occed.

Use the excess rent from the paid off first house, plus the rent from the second house and pay it off as fast as you can, repeat, repeat. As each house is paid off you then have two tenants paying one off, then three tenants paying one off then four tenants paying one off, see where this is going..............

Now, when you think you have half the places you need to LOR, you go back through these properties and build the second house to complete the dual occ using the rent from the existing (paid off) houses to assist paying them down.

No need to subdivide (saving costs) if you want to live off the rent and no extra stamp duty applicable as you paid that when you first bought them.

It worked for me and I have lived mortgage free on the rent for over 15 years.

Hope that makes some sense.

 

This is good I agree with it, I have three that are dual occ and you get more bang for your buck, people talk about entrance, power and privacy issues but I have never experienced any of those and also there is increasing demand from people that don't want to share so they are always popular. You can also create stronger cash flow with less properties which means you don't need to buy as many... And if your smart you can pick them up for the same price as single occs, depending on timing obviously.

 

It can also help to live in a dual occ as well, potentially saving 1000 a month on rent if you set it up properly, but that's not for everyone