do you follow values during the acquisition phase

[TMNT]

Title might be misleading, but for those that aggressively invest, more then say 1 per year,

during the aquisition phase, do you keep an eye out after a year or so, on the value of the purchase? assuming its a buy and hold or a buy, reno and hold

assuming its the bottom of the cycle or starting to rise, and assuming you bought below market or at market, do you check other listings every year and say "oh that one is similar to mine and is asking $20k more" (yes asking price is differnet to selling price, but a good indicator of the market, either the vendors are dreamers or the market is heading towards that direction, like west sydney for example

i have aggressively invested in my first 2 years, and now its been 0-1 year since most of my purchases, I know its the absolute wrong feeling, my mind says im being an idiot, but im feeling a bit "unexcited" since they havent boomed, ( i wasnt expecting it to boom though), however was expecting the market turn around into a hotter market

as I said in a differnet thread, probably about 7-10% growth in 80% of my ips, 20% probably zero movement

somebody shoot me

edit: id be feeling pretty excited had I purchased in west sydney 12 months ago, where prices had just started to turn around, but fast fwd 12 months and its going as hot as anything, but I didnt purchase

 

[MRO]

Its all about time. You have made the first step now just hold on and time will do its thing.

 

[Brady]

Title might be misleading, but for those that aggressively invest, more then say 1 per year,

during the aquisition phase, do you keep an eye out after a year or so, on the value of the purchase? assuming its a buy and hold or a buy, reno and hold

assuming its the bottom of the cycle or starting to rise, and assuming you bought below market or at market, do you check other listings every year and say "oh that one is similar to mine and is asking $20k more" (yes asking price is differnet to selling price, but a good indicator of the market, either the vendors are dreamers or the market is heading towards that direction, like west sydney for example

i have aggressively invested in my first 2 years, and now its been 0-1 year since most of my purchases, I know its the absolute wrong feeling, my mind says im being an idiot, but im feeling a bit "unexcited" since they havent boomed, ( i wasnt expecting it to boom though), however was expecting the market turn around into a hotter market

as I said in a differnet thread, probably about 7-10% growth in 80% of my ips, 20% probably zero movementsomebody shoot me

edit: id be feeling pretty excited had I purchased in west sydney 12 months ago, where prices had just started to turn around, but fast fwd 12 months and its going as hot as anything, but I didnt purchase

I would be happy, you havent had any negative growth...

1 property purchase last year has had zero growth, possible some from renovation... but increase in rent from $240 upto $250 (yay )

Other property purchased 6months ago has gone up $5k as per bank valuation and also increased $10.


I plan to be buying every year at least, I will continue to look at other values... but doesn't phase me to much...

I purchased each property as long term investments which I think will have good steady growth and the rent will look after all of the interest.

Idea being that some had development potential which will be utilised when there is enough equity from that actual property as that will give me a good indication that the market is ready.

 

[travelbug]

I think you definitely need to keep track when you are in the aquisition phase. I'd assume lots of people would be keeping track and revaluing as prices moved up so they could refinance to move ahead.

I don't need to refinance so haven't done revals but I like to look so I know where I stand. I like to see my LVR go down (call me crazy!). Transitioning to retirement soon so it's important to me (as well as cashflow of course).

Also being in the acquisition phase you may find something else similar that's worthwhile purchasing in the same area. That's what happened to me. Checking properties similar to mine, saw a really cheap one that I knew I could reno like mine so bought it.

 

[macca446]

Hi,
I am back into the acquisition phase finally after sitting idle for a few years and for lots of us we can always look back and say wish I did, I purchased 2 properties in western sydney in 2006 and did not see much growth for a long time but i knew in time it would happen and very happy now , I am always measuring up properties similar to mine keeps you alert and feels good when their is upward movement.

Regards,
Macca446

 

[nhg]

I keep tabs. Not to the same extent as when im targetting a specific area, yet if prices have moved say 10% ill consider refinancing.

Im close to. Will wait a few months till Western Sydney market settles a little and see what I can get.

 

[HD_ACE]

you have gotto keep your finger on the pulse during the aquisition fase you need all the equity you can get.

Plus by reviewing the performance of previous ips, you can then tweak your strategy and buy criteria to improve.

cheers

 

[nhg]

you have gotto keep your finger on the pulse during the aquisition fase you need all the equity you can get.

Plus by reviewing the performance of previous ips, you can then tweak your strategy and buy criteria to improve.

cheers

Well stated. Realising how my first investments have gone, I have overhauled my strategy. Posture of learning. Act.Review.Deduce.Implement. (or something like that).

 

[mrmonopoly]

Constantly reviewing your portfolio is essential in my honest opinion both in acquisition phase and on going and something I certainly encourage all my clients to do. Better still plotting the portfolio progress against the initial plan to see how you are tracking.

This serves a number of purposes, firstly it allows you to confirm how well you have bought i.e. negotiated BMV with an equity buffer, which when not properly researched can seem great at the point of acquisition but in hindsight with perspective on the local market trends may not be so good. Likewise if you have bought well and timed the purchase well, you may have unexpected equity to tap into for the next purchase.

Personally I think as an active investor always keeping your eye on the market is imperative so you are both always ready to grab the next opportunity but also so you know when the opportunity cost is greater elsewhere.

 

[travelbug]

Just wanted to add that you also need to keep track of rents.

I had a property rented for nearly a year when someone on here mentioned they'd get a certain amount for their newly renovated property. I thought they were being very ambitious as mine was better so rang my PM (same one they were using) and she told me things had gone up fast. So I put mine up $20pw. NICE!!!

 

[Blair007]

I'm still in the beginning stages of acquisition.

For the areas I'm looking to buy I'll have daily/weekly alerts sent to my email

I'm doing a retain and build in South Lake WA, so what I've done for that is set up a monthly email alert for that area. Changed the search criteria to match that of my house and each month you get an update of where you are at.

I think I'd keep this alert for the duration I own the property because it only takes 2mins of your time to keep you up to date with that particular market.

Also just as a note the only 2 property search engines I've used are REIWA and realestate.com.au. I found realestate.com.au to be much more effective and I had the same searchs set up on both but was only getting half the properties in each alert from REIWA.

 

[Rixter]

Title might be misleading, but for those that aggressively invest, more then say 1 per year,

during the aquisition phase, do you keep an eye out after a year or so, on the value of the purchase? assuming its a buy and hold or a buy, reno and hold

In our property portfolio acquisition stage we were purchasing an average of one property per year over the course of a decade as part of our CGA Property Investment Strategy..some years we purchased none and other years we purchased two.

During that time we kept regular checks on property holding values so as to leverage against and continue purchasing. We used this research as proof to back up our estimations if bank valuation came back conservative.

Another strategy we used was to find out which valuers sat on our lender's panel and used them to conduct our independent valuation prior to purchase contracts going unconditional.

Should a bank's valuation come back short it provided us written evidence to back up our case for property value and also provided us a paper trail of evidence later on down the track for future refinancing & purchases should the need arise.

I hope this helps.

 

[MTR]

Title might be misleading, but for those that aggressively invest, more then say 1 per year,

during the aquisition phase, do you keep an eye out after a year or so, on the value of the purchase? assuming its a buy and hold or a buy, reno and hold

assuming its the bottom of the cycle or starting to rise, and assuming you bought below market or at market, do you check other listings every year and say "oh that one is similar to mine and is asking $20k more" (yes asking price is differnet to selling price, but a good indicator of the market, either the vendors are dreamers or the market is heading towards that direction, like west sydney for example

i have aggressively invested in my first 2 years, and now its been 0-1 year since most of my purchases, I know its the absolute wrong feeling, my mind says im being an idiot, but im feeling a bit "unexcited" since they havent boomed, ( i wasnt expecting it to boom though), however was expecting the market turn around into a hotter market

as I said in a differnet thread, probably about 7-10% growth in 80% of my ips, 20% probably zero movement

somebody shoot me

edit: id be feeling pretty excited had I purchased in west sydney 12 months ago, where prices had just started to turn around, but fast fwd 12 months and its going as hot as anything, but I didnt purchase

As you mentioned you missed out on West Syd, but I don't think you have?? there are still opportunities out there just got to find the right deal.

Its just as important to track your buys as it is watching markets and pulling the trigger when the market is rising. I do this on a daily basis, sometimes I spend 5 minutes sometimes all day. No rules, just keep working it, the beauty is ...... the more you do it - the better you get

MTR