STRATEGIES on the road ahead

[Brenda Irwin]

To date, Les and I have not established a strategy for the future.

Sounds silly when we already have 23 houses. We were so busy jumping in boots n all that now, with cashflow properties harder to find, we are now considering our options.

We have tried to structure our portfolio so we have the most options on what to do next but this may have been a mistake. Now we have choice, which way do we jump?

Options we have been considering: Stop buying and just concentrate on paying down the loans; sell one or two of our houses each financial year until the loans are tiny; branch out into commercial investment, go looking for a capital growth property close to CBD and hold it; keep picking off the occasional cashflow positive or neutral property which may also yield a reasonable capital growth; or just sit and do nothing.

Sitting and doing nothing seems in the present market to be safer but I don't know if I have the fortitude to do that.

 

[Jacque]

Originally posted by Brenda Irwin
Sitting and doing nothing seems in the present market to be safer but I don't know if I have the fortitude to do that.

Hehe!
I know exactly what you mean by this, Brenda. But you've heard others say "Sometimes the best investment decision is to do nothing at all"?
Well, I agree here in that, at times it's necessary to sit down and merely think. Work through your plans, look at your options (like you are already doing) and map out your future.
As you know, the bargain of a lifetime comes around once a month/week/day (depending on where you read it from!) and RE works through cycles. Timing isn't everything, but it sure makes it easier to make a profit when you pick it accurately!

Why not write your own renovating book? You sure have developed the know how and stamina!

 

[Robyne]

"best advice I either got was to MOCK BUY... NOW it sounds stupid but it is rewarding . Buy 10 homes at a time ..follow the growths of them & rents for 3-6 mths. You them pick up the feel of what is important in buying & making the most of the situation."

I think Ocean View was talking about following up properties you could have bought to get an idea of the growth trends, rents and other issues rather than practicing negotiating techniques by "low balling".

Robyne

 

[BV]

I agree with Robyne here,
OCEAN VIEW with the MOCK BUY comment meant
he pretends to buy the properties and follows them up to see how they perform.

 

[ocean view]

..

BV...correct ghost buying

Thats how I started in the IP area,, and have thanked my mentor everyday since/

There was a reason for it, to learn.. to follow & try to understand why a certain property will rise 40% cg this year & why the others will not. I still do this even after 15 yrs of investing. I am not ashamed of it, quite the opposite.Though it was a bit frustrating buying only one unit in toaster in 95 at the operahouse & mock buying 5 others,,,hehe

This method has taught me plenty when I have been stuck for ideas over the years.

People have many ways to gain confidence in their decisions,,this was way is mine.

Another example was,, buying 15 blocks of dirt on a golf course at once.. following the values & stats on these was an eye opener to say the least. It helped me to buy in future golf estates for years on,,, helping my confidence on knowing what sort of block does better than another in short term cg.

The list goes on... subdivisions..units,,marina berths,,car spaces ect.. One thing I never take for granted is knowledge in investing..

KNOWLEDGE.....
Always respect someone that has it & continue to always look for more of it..
just another point of view

OV

 

[BV]

Ocean View,

Thats an interesting list of investment options
Are you doing this full time, or do you have another full time job?

It can be very valueble having the ability to find potential winners
Have Shares ever attracted you?

 

[ocean view]

work?

BV

As an investor and like most of the forum..we work in at least one other field +. investing.

That field maybe developing land & building spec homes ect...Its all hard work & takes up a lot of our time.

In regards to shares,, yes I do trade but only when I feel safe to
do so. knowing that a (company will increase in share price)

Since shares are alot volitile ,My portfolio would not ever have a share % of more that 5%..Hey that's my way & I am happy.

Friends of mine seem to trade 50 ? 50 ,, bUt over time the ones who have more property have the bigger portfolios on average & sleep alittle easier to add.

There are always people who seem to do it easy when it comes to investing. But over say a 10-15 yr period luck does not have much input. Hard work & research secures good performing purchases.

ov

 

[see_change]

quote:
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Originally posted by Brenda Irwin
Sitting and doing nothing seems in the present market to be safer but I don't know if I have the fortitude to do that.
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I think it was in "Retire young , Retire RIch " that Robert Kiyosaki said , once he'd decided cash flow properties were the way to go , it took him five years before the market conditions were right so he could start buying.....

Personally , along with many other thngs I am updating my share soft ware

See Change