Why Portfolio Diversification is Important to a Growing a Portfolio....

Discussion in 'Property Market Economics' started by sash, 15th Nov, 2015.

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  1. sash

    sash Well-Known Member

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    Yeah mate...some people are still relying on the chalk, slate, and smoke signals...and the occaisional drum beat...;)

    On a more serious note...I haven't visited some of my properties for over 10 years..wonder whether they are still there...hang on they must still be there...someone is still paying me good rent!

     
    sash, 15th Nov, 2015
    #21
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  2. melbournian

    melbournian Well-Known Member

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    lucky you (10 years not one visit)- i've been to europe in 2013,14, 15 just to manage some switchovers/renos and view and just about had enough
     
    melbournian, 16th Nov, 2015
    #22
  3. skater

    skater Well-Known Member

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    I've got several that I haven't seen in over 10 years.
     
    skater, 16th Nov, 2015
    #23
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  4. sash

    sash Well-Known Member

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    Yeah...was hard initially..letting go...now..I just can't be as bothered
     
    sash, 16th Nov, 2015
    #24
  5. melbournian

    melbournian Well-Known Member

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    @sash i need to learn from you. i've been self managing a few in the west side of melb(and they're busting me for pest treatement, security doors etc) luckily i have been able to talk them out of it.
     
    melbournian, 16th Nov, 2015
    #25
  6. D.T.

    D.T. Specialist Property Manager Business Member

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    I'm curious, why?
     
    D.T., 16th Nov, 2015
    #26
  7. melbournian

    melbournian Well-Known Member

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    @D.T. not sure maybe bad choice of tenants and i'm looking to offload. My friend had the same issue in wydham vale (have to evict the tenant who refused to move). i have used agents for others. i know i should be pushing more to agents to manage - maybe 6-7 years ago i was dating this girl and then offered one of my apartments for lease to her (thinking if was an easy transanction). Let's just say it didn't turn out well.
     
    melbournian, 16th Nov, 2015
    #27
  8. skater

    skater Well-Known Member

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    Managing properties (properly) is hard. Rather than offload, get a gun PM onto them & your life will be a lot easier. A good PM does a lot more than just collect the rent.
     
    skater, 16th Nov, 2015
    #28
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  9. sash

    sash Well-Known Member

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    Western Melbourne has a lot of ordinary and lazy agents.

    You need to filter through and find the correct agents....
     
    sash, 17th Nov, 2015
    #29
  10. flyhere

    flyhere Well-Known Member

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    Hiring a good PM is much easier and a lot better than doing everything yourself. And can help with properties running smoothly in other states too.
     
    flyhere, 17th Nov, 2015
    #30
  11. flyhere

    flyhere Well-Known Member

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    Diversification into different states is a good way to help the portfolio healthily steadily grow all the time
     
    flyhere, 17th Nov, 2015
    #31
  12. JDP1

    JDP1 Well-Known Member

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    Agreed..however how does one go about this selection ? They all say the same and give a proactive impression.. And once they have your business.. Not much more than rent collectors.
     
    JDP1, 17th Nov, 2015
    #32
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  13. skater

    skater Well-Known Member

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    Move onto the next one, if they are useless.
     
    skater, 18th Nov, 2015
    #33
  14. C-mac

    C-mac Well-Known Member

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    Anyone know any good PM's in regional Victoria? If so, can you please PM me?

    Also, I agree re: the 'letting go' of needing to visit your properties If you have a gun PM in place. One of mine in Sydney hasn't been visited at all since I purchased it in 2010!
     
    C-mac, 18th Nov, 2015
    #34
  15. melbournian

    melbournian Well-Known Member

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    Only done 2 in the west as in rentals but current tenant is OK maybe late once in a while but still pays (which i overlook sometimes). I used manage more as in apartments in melbourne but that was a while back and i lived like 5-10 minutes away from those so if there were issues it was easy to deal with. With the west, it takes good 30-40 minutes to drive there 1 way.
     
    melbournian, 18th Nov, 2015
    #35
  16. sash

    sash Well-Known Member

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    Yes..I can see your quandry...just need to appointment someone competent and let go. :)
     
    sash, 18th Nov, 2015
    #36
  17. Richard Taylor

    Richard Taylor Well-Known Member

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    Managing properties (properly) is hard. Rather than offload, get a gun PM onto them & your life will be a lot easier. A good PM does a lot more than just collect the rent.

    Totally agree. Alternatively employ your own and get them to do everything.

    I employ a lady full time and she does everything from the advertising for tenants to the quarterly inspections, paying my insurance, Council rates etc etc.

    She sends me a weekly spreadsheet of what has been received / spent wherever I am in the world and once a month we have a face to face get together.

    An property agent will promise you the world to get you in and then forget you 10 minutes later and treat you merely as a number.

    This way I never stress about the properties and can focus on other matters.

    Cheers


    Richard
     
    Richard Taylor, 19th Nov, 2015
    #37
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  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    and that is a Business approach to your investing .............. most PAYG folks cant see that until someone sits them down and shows them, OR they learn the hard way


    ta
    rolf
     
    Rolf Latham, 19th Nov, 2015
    #38
  19. melbournian

    melbournian Well-Known Member

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    good comments. been doing both agent and self managing for 10 years and acting as power of attorney for few other things. obviously i have agents in UK to manage my IPs and business managers to manage my restaurant overseas. u can be a payg and still have other ventures.
     
    melbournian, 19th Nov, 2015
    #39
  20. melbournian

    melbournian Well-Known Member

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    it's not the management i am more concerned about but i need to free up capital. the land and builds were mainly funded in cash. i haven't taken a home loan since 2010.
     
    melbournian, 19th Nov, 2015
    #40
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