When did you branch out from "normal" property investing

Discussion in 'Innovative Property Investment Techniques' started by Niche, 12th Feb, 2020.

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  1. kmrr

    kmrr Well-Known Member

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    Great story and an interesting pivot to the USA. What are the challenges of investing in USA property and how do you do your DD?
     
  2. Sackie

    Sackie Well-Known Member

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    My goals haven't really changed much from the beginning, but I had to 'stratagize the strategy ' according to my risk tolerance relative to my portfolio.

    My progression was

    purely buy and hold to
    buy, reno sell to
    buy develop sell some/hold some to
    Buy/invest in commercial businesses + develop residential real estate.

    I don't see it so much as 'branching out' but rather increasing my equity invested and strategy progression to get closer to my goals as my overall position grew stronger. This allowed me to take on larger risk/reward numbers without necessarily having to increase the magnitude of my risk.


    If always been obsessed with being mindful of risk and how it relates to my investment decisions. I've seen too many people go belly up over the years and lose everything or close to it. It also may possibly be a contagious trait I contracted from my mentor.
     
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  3. Investor1234

    Investor1234 Well-Known Member

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    When you hit your serviceability wall, what did you do to overcome it? I have hit my wall too with an OO and IP. Did you get into shares, SMSF, etc.?
     
  4. Investor1234

    Investor1234 Well-Known Member

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    Great for cashflow, but what was the growth story? I rather pay out of pocket for a few years (negatively geared) and reap the rewards (capital growth) later on. Not chasing cash flow for now.
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    Yep - just branched out into shares, managed investments, options trading, trees..... some of these went v.bad....

    The Y-man
     
  6. Investor1234

    Investor1234 Well-Known Member

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    You reckon investing in residential properties is the safest bet then? Safest way to get capital growth and decent income? Curious about the trees! Haha…
     
  7. Beano

    Beano Well-Known Member

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    It's a bit hard to tell you the actual growth story as I have not sold any of my commercial.

    Investments are not a simple yield and growth.

    Low yielding properties need support from other income where as high yielding properties allow you to continue your growth of your portfolio and reduce debt rapidly.

    Not possible to quantify but I believe my total portfolio is a lot larger and produces more income today than if I stuck with just residential.

    If I could turn the clock back I would have still have gone the commercia high yield way .

    Anyway I am happy with the initial high yields and the growth.
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    See my story:
    Hi from The Y-man

    The Y-man
     
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  9. The Y-man

    The Y-man Moderator Staff Member

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    Much better off doing AREITs and commercial prop (direct + indirect) for income.

    The Y-man
     
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  10. jins13

    jins13 Well-Known Member

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    Don't forget the exclusive use condition and if the valuer is willing to value all of the commercial property ie valuers dislike PODs and detachment structures.
     
  11. New Town

    New Town Well-Known Member

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    Thanks but can you clarify that a bit? Is it regarding industrial build types and tenant types?
     
  12. jins13

    jins13 Well-Known Member

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    Industrial build types. If you have say a cafe in a warehouse, the structure of the cafe or part of it may not be permanent per se and may have an exclusive use granted ie the use of the carpark space for customers in the common areas. A potential issue with this is that the valuer may value the property lower than the contract price because they may feel it's a risky venture especially if an exclusive use was taken away.
     
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