People,
I am currently 24 and I started investing 2 years ago and have since amassed;
1x property in Glenmore Park, Penrith
2x dual occupancy properties in Jerrabomberra, ACT
3x property in Jerrabomberra, ACT
2x property in Dunlop, ACT
2x property in Gungahlin, ACT
1x property in McKella, ACT
My investment strategy has evolved from looking for cash positive deals to deals where i put no money down to deals that just make overall business sense.
I now only build properties, keeping costs down and only purchase when total cost of building\land purchase is approximately 80% of valuation hence all the above properties are 80% of valuation i.e. avoiding LMI. I balance this with rental and projected capital growth but I am in desperate need for hard XYZ measures\rules so I do not make a mistake on a purchase but as you read on its hard to do this.
My general strategy is to buy and hold as many properties as I can and not sell anything. I use the equity in the properties to draw down and purchase businesses that produce an income and use this to fund the current and future interest repayments.
Businesses I have opened include mortgage brokering services, development & sales of construction and a cafe.
My question is! How many people here invest as above i.e. "trully" seing property as just an asset and have a strategy to buy which invovles more than just the typical notions of cash positive, negetive gearing.
My follow on quesiton is what system do you have in place to ensure that the right decision is made, balancing risk and conducting quick feasability study.
In addition what financial controls do you use currently I have someone doing my booking (MYOB) monthly for all my business interests including property (I currently buy property under my own name). I use optimist 3000 to conduct business models to see if purchasing property x over y makes sense.
Basically I am starting to struggle to know what my strategy is for example although I wish to purchase and not sell, selling a property or two may infact provide the immediate cash to allow me to purchase more properties and hence hold onto more than if I had never sold 1?
I am sorry for babbling but I want to know if anyone has an advanced investment strategy here and have enough properties to know that there is a point where a clear, systematic strategy is required for purchases and financial control.
Any help would be appreciated.
P.S I am not rich and hope the above question does not suggest that. Booking keeping costs less than $200 a month. I have been able to buy so many properties thanks to buying on valuation which means money down from my pocket is minimal. In short I have been able to purchase many with relatively little cash. My strategy works BUT and can continue to do so but i want a more conrete system in place and interested to hear from others in my or similar position.
Any help would be appreciated.
I am currently 24 and I started investing 2 years ago and have since amassed;
1x property in Glenmore Park, Penrith
2x dual occupancy properties in Jerrabomberra, ACT
3x property in Jerrabomberra, ACT
2x property in Dunlop, ACT
2x property in Gungahlin, ACT
1x property in McKella, ACT
My investment strategy has evolved from looking for cash positive deals to deals where i put no money down to deals that just make overall business sense.
I now only build properties, keeping costs down and only purchase when total cost of building\land purchase is approximately 80% of valuation hence all the above properties are 80% of valuation i.e. avoiding LMI. I balance this with rental and projected capital growth but I am in desperate need for hard XYZ measures\rules so I do not make a mistake on a purchase but as you read on its hard to do this.
My general strategy is to buy and hold as many properties as I can and not sell anything. I use the equity in the properties to draw down and purchase businesses that produce an income and use this to fund the current and future interest repayments.
Businesses I have opened include mortgage brokering services, development & sales of construction and a cafe.
My question is! How many people here invest as above i.e. "trully" seing property as just an asset and have a strategy to buy which invovles more than just the typical notions of cash positive, negetive gearing.
My follow on quesiton is what system do you have in place to ensure that the right decision is made, balancing risk and conducting quick feasability study.
In addition what financial controls do you use currently I have someone doing my booking (MYOB) monthly for all my business interests including property (I currently buy property under my own name). I use optimist 3000 to conduct business models to see if purchasing property x over y makes sense.
Basically I am starting to struggle to know what my strategy is for example although I wish to purchase and not sell, selling a property or two may infact provide the immediate cash to allow me to purchase more properties and hence hold onto more than if I had never sold 1?
I am sorry for babbling but I want to know if anyone has an advanced investment strategy here and have enough properties to know that there is a point where a clear, systematic strategy is required for purchases and financial control.
Any help would be appreciated.
P.S I am not rich and hope the above question does not suggest that. Booking keeping costs less than $200 a month. I have been able to buy so many properties thanks to buying on valuation which means money down from my pocket is minimal. In short I have been able to purchase many with relatively little cash. My strategy works BUT and can continue to do so but i want a more conrete system in place and interested to hear from others in my or similar position.
Any help would be appreciated.