Stretch Target of $20m gross by 2022

You can still replicate things...but asset quality is more paramount. Here is what I would go about doing things:

1. Find out how much you could borrow.
2. Develop a strategy to buy balanced assets (6% CG, 5-6 yield)
3. Do not buy in lower socio areas....it will take longer to get CG
4. Consider buying H+L in good areas near transport or proposed infrastructure in Stages 1-3....
5. Develop a strategy that will work with you
6. Finance is the main game....property is only the vehicle.....

Things not to do:

1. Follow the herd - lots of young people following other young ones who are yet to see one cycle...how are they going to go when the market turns. You can't put an old head on young shoulders
2. Advisors - ask what is in for them?
3. Listen to people who have had a track record for 10 years plus...they would have seen on cycle
4. Assuming that any market will continue growing....EVERY market has cycles..what goes up must come down at sometime. Different markets work differently. For example Sydney/Perth are boom bust markets, Melbourne/Adelaide are steady growers - exception is some of the inner areas, Brisbane is somewhere in the middle.
5. One more thing...as you get more successful people will troll and attack you...get used to it. They will also do their best to discredit you...for example a constantly get bailed up for not buying more in Sydney. Sure i could have bought more here...but was also mindful over the longer term I did not want a 20k plus land tax bill and wanted some level of tax relief when I sold. I chose suburbs in Wollongong and Central Coast. I bought one for 241k and other for 263k (houses). They are now pushing 570k plus and 670k plus respectively...but people still focus on that I did not invest in Sydney.
So above all run your own race!

 

Killing it sash! I was looking into Central coast back in 2013/2014 but ended up in Brisbane instead. If only!

 

Ta, yes...but I still get regularly get pillared for buying in CC and Wollongong...they don't see the growth equivalent to Sydney. As a matter of fact on detailed analysis they went up much more than places like Mt Druitt, St Marys, Penrith or Campbelltown for a similar house.

The same thing is the case for my Maitland property.....

The last meet-up...some young Turk confronted me on this...my response was to say .."Look I don't want to be rude"....but if I have got to xxx in net assets...do ya think the strategy is working? No response to that one.....

 

Depends on your friends. True friends encourage and are happy when one of their own succeeds in life, money, family, kids or anything else really.

Like I said I grew up with all mine since we were doing stupid things like wagging school. Now we are all adults and trust each other 100%. We even lend each other in excess of $50k when needed by others.

If your friends have tall poppy syndrome for your success its time for new friends.

 

Question?

How many property cycles have you seen? What makes you think cycles have changed?

I heard this last 2 cycles...gues what happened? I thought this too before on the hard lesson after one cycle.....

 

Whats cycles got to do with tall poppy syndrome?

 

Nutin...other than...don't count your chickens before they hatch

 

LOL - I'm not but I would like to think I am fairly smart individual so to me that's all that matters.

 

I'll definitely give you that...the question is whether you are a tortoise or hare?

 

I've just started using such a strategy. Do you have any tips on when equity is plenty, but serviceability becomes a problem? Thank you

 

Be persistent...look past the majors....think people like Choicelend....RAMS...Liberty....etc.

It is hard...but persistence will pay off....

 

@sash do you own all your properties ? I mean do you have any structures in place like trusts, companies, partner's name etc?

 

no bank own most.....about 70%.....

 

Hahah, a good way to answer the question without answering it! I'm interested in the answer too, so are you comfortable in telling us if its all in your name or do you use partners or trust/company to purchase properties?

 

Being cheeky in my name..........or my bikie mates.....

Call me a paranoid pr^ick as some trolls on here post my info.....i'll have to get them knocked off.

 

Probably should have asked you this at the CBD meet up. Next time!!

 

I'm still learning and hoping to do similar to you...new property in outer growth suburbs, near transport/infrastructure in the early release stages. I can see how one could grow a portfolio quickly this way

BUT I don't understand how it works once you want to stop working. I've read that living on equity only works in theory but not so well in real life. So what does one do for the "ready to retire" stage? Sell some to pay off debt? Thanks in advance.

 

I know Sash is branching into H&L packages etc but if you're just starting out, I'd opt for ****** properties in better suburbs as close to the city as possible and doing a cheap, cosmetic reno post purchase.

 

Would you be able to expand on this a bit?
The yield in many places is very low these days due to the low interest rates and consequential quick price rises, so that cuts down a lot of areas, especially close to Syd/Melb/Bris CBD's.
That leaves slightly further out suburbs, but then how can you know which slightly further out suburbs are likely to have reasonable growth? Any tips on how to find this out?

 

@sash thanks for sharing and truly inspirational.

When I started my finance business first goal was to turn over 250k. This at the time seemed very lofty from someone earning circa 100k at the time from a job.

I achieved that and decided to 10x it and next goal is 2.5 mill turnover which seems lofty but I believe it as much as I believed the first "lofty" goal of 250k turnover per annum.

I didnt really know exactly how to achieve goal 1 but took massive action over an extended period and pulled it off so figuring the journey to 2.5 mill turnover will be just as doable.