Stratergy That has worked time and time again ???

But Brisbane keeps calling.. its a great place, heaps of potential, many value areas for those who can identify them..i can't help it..

Adeliade is also very tempting if the numbers make sense from the beginning so will seriously look into it with one of the great SA gurus on here

btw love your avatar

 

Simply two separate houses on an un-subdivided block.

Usually basic 3 bedroom houses.

 

I saw the main advantages of residential investing as leverage and compound growth.

Building a large portfolio quickly and holding long term (say 10yrs) allows the magic of compounding.

High LVRs (over 80%) improves the return on what you've invested from savings/out of pocket. The higher borrowing risk its offset by the lower risk nature of residential property.

 

We just tweaked our strategy, now we are buying commercial properties in USA, this is purely a cash flow play.
But it is run like a business, so we employ a book keeper who manages the cash flow, sends invoices to our tenants each month, reconciles bank accounts each month etc etc.

When I started property investing I was continually out of pocket each month, and totally dependent on capital growth.

Now we buy cash flow from day 1, very attractive in comparison, but if you can achieve both even better.


MTR

 

Its also very much dependent on when you purchased and where you purchased, it can take significantly longer or significantly shorter time frame, that's why market conditions, are very important.

I think many investors focus on the product and feel comfortable with this, but imagine if you focused on both what you could achieve in a much shorter time frame.

MTR

 

yes I always hope to get decent growth via timing and location.

Oh no just see Ace in the Hole's comment a year and a half ago is "Compounding combined with leverage is where the magic happens". Worse than a bad investor - unoriginal PC comments