Nope....but getting warm....I would not pay 220k for anything in Elizabeth or Davoren Park.
IP portfolio that performs regardless of market movements!
- Thread starter sash
- Start date
Hrmmm, not down Direk/Paralowie way? This will derail the thread, might PM if you don't mind. 
Hi sash
An inspiring post. Just curious how many properties do you have currently ?
Also, how long did you take to reach 1m in assets ?
Am I right to say that your strategy of at least 7% yield would probably be CF neutral or even positive ?
Cheers
An inspiring post. Just curious how many properties do you have currently ?
Also, how long did you take to reach 1m in assets ?
Am I right to say that your strategy of at least 7% yield would probably be CF neutral or even positive ?
Cheers
I have 16 properties...and it took me about 5 years for get $1m in assets...I was fraidy cat back then!
I have a mate who has bought 8 properties in 2.5 years ...just under $1.85m in assets under management. He used my strategy also....and he just has his second baby!
At 7%...it is still slightly negative...without depreciation...with depreciation it is neutral.
I have a mate who has bought 8 properties in 2.5 years ...just under $1.85m in assets under management. He used my strategy also....and he just has his second baby!
At 7%...it is still slightly negative...without depreciation...with depreciation it is neutral.
A great thread that will add to the 'value' of Somersoft.
Well done sash, thanks for sharing.
Well done sash, thanks for sharing.
Congrats as per usual mate!
Good work with the portfolio, example of how a portfolio should compliment ones lifestyle and not detract from it.
Nath.
p.s. Notice our rate predictions don't seem so silly from 6 - 12 months ago now. Reduction is very appetising, achievable and writing is on the wall for it for all purposes you have highlighted.
Good work with the portfolio, example of how a portfolio should compliment ones lifestyle and not detract from it.
Nath.
p.s. Notice our rate predictions don't seem so silly from 6 - 12 months ago now. Reduction is very appetising, achievable and writing is on the wall for it for all purposes you have highlighted.
Thanks Intrinsic and Nath for the kind words.
Yes...the rates are looking to head down soon...if it happens in Nov...I would have been a month off in my forecast!
Hey...is that the Trumpster on the photo in your profile! Did you tug on this hair to ensure it is real???
Yes...the rates are looking to head down soon...if it happens in Nov...I would have been a month off in my forecast!
Hey...is that the Trumpster on the photo in your profile! Did you tug on this hair to ensure it is real???
Congrats as per usual mate!
Good work with the portfolio, example of how a portfolio should compliment ones lifestyle and not detract from it.
Nath.
p.s. Notice our rate predictions don't seem so silly from 6 - 12 months ago now. Reduction is very appetising, achievable and writing is on the wall for it for all purposes you have highlighted.
Great read, sash, thanks for sharing. Exciting times ahead, for sure.
Geez Louise....you are lean and tall....but the Don being taller than you??
Was that the recent seminar where they had Richard Branson and others there?
Thanks Travelbug
I keep it simple and buy under my name.
Thanks Cherry Pro
Was that the recent seminar where they had Richard Branson and others there?
Thanks Travelbug
Great work Sash (as usual).
I've been buying. Plan was for 2 per year. This year done but may 3 this year.
I keep it simple and buy under my name.
Thanks Cherry Pro
Sorry guys ....these are new suburbs...and there is a caveat. They are near Eliabeth and Salisbury - I have stayed for any new ones in Davoren Park or Elizabeth suburbs. Munno Parra also has a lot of vacancies.
The purchase price was based on 3-5 purchases with mates. We have pushed for the developer discounting the block, paying the stamps, and pay less than half of the finishing costs. We are still haggling as there are not moving anythinh quickly at the moment.
They are not off the plan so you need to allow for interest costs during construction.
The finished product is probably worth about 270k-290k.
If you proceed directly it would probably cost you about 230-235k with a bit of haggling.
Oh another thing most of the blocks are small 300-350sqm with about 10-14m frontages. And the house are about 120-145sqm....so in the small side. This includes garage and carport. If you pick the right house to fix on a block make sure the backyard is 5-7 metres from the back door to the fence as most are only 3-4 metres.
My agent believes she can rent them easily for 300-340pw due the demand at the moment. My old Paralowie house which I bought for 190k in late 2007 is now rented for 275pw. But is worth about 270k but is neutrally geared due to IR going from 5.69% to 6.8% so I am happy. My interest cost on this is about $11,300 and the other costs are about $3100. If I include depreciation is definitely $10-25pw positive.
Though the returns are likely to be in the very high sixes or low 7 sevens the amount of depreciation makes up for this. The plan I was working to was to use the high depreciation to reduce my positive CF.
The purchase price was based on 3-5 purchases with mates. We have pushed for the developer discounting the block, paying the stamps, and pay less than half of the finishing costs. We are still haggling as there are not moving anythinh quickly at the moment.
They are not off the plan so you need to allow for interest costs during construction.
The finished product is probably worth about 270k-290k.
If you proceed directly it would probably cost you about 230-235k with a bit of haggling.
Oh another thing most of the blocks are small 300-350sqm with about 10-14m frontages. And the house are about 120-145sqm....so in the small side. This includes garage and carport. If you pick the right house to fix on a block make sure the backyard is 5-7 metres from the back door to the fence as most are only 3-4 metres.
My agent believes she can rent them easily for 300-340pw due the demand at the moment. My old Paralowie house which I bought for 190k in late 2007 is now rented for 275pw. But is worth about 270k but is neutrally geared due to IR going from 5.69% to 6.8% so I am happy. My interest cost on this is about $11,300 and the other costs are about $3100. If I include depreciation is definitely $10-25pw positive.
Though the returns are likely to be in the very high sixes or low 7 sevens the amount of depreciation makes up for this. The plan I was working to was to use the high depreciation to reduce my positive CF.
Sash, are these places in the Barossa (not responding to you JWR
JWR: Highly deceptive in costings. The Playford area is notorious for its reactive soil, so add a potential $10k onto costs. Low 200's you could get yourself a simple place on a small block.
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