FHB market, get in now, sell in a few months

[coastymike]

Agreed James. I have a number of property developer clients who have no intentions of ever holding their properties. They are selling all the time.

 

[sparky23]

In the current climate with rents covering interest costs in many cases it makes good sense to hold property on long fixed rates.

Not everyone can be a developer and many people have put their developments on hold anyway at the moment as there are no guarantees as to where prices may be by the time the developments are finished. I am looking at other options for my land right now instead of developing.

But yes you are right everyone should figure out what works for them.

 

[stumunro]

Agreed James. I have a number of property developer clients who have no intentions of ever holding their properties. They are selling all the time.

I've met too many developers that are always having to sell to move onto the next project as quick as possible. And alot of the time look back and think - could I have held onto a little more?

While i absolutely agree that buy & hold isn't for everyone, at this early stage of the game and given the markets, I think it's the right starting point.

Sharpstone, my little piece of advice, it's never too late / or early to sit down and work out a sound investment plan - what are you trying to achieve?

For alot of people the end result might be commercial investing or big developments. But most of the time they need the assett & equity base to start off with before they go down these routes.

Good luck and feel free to PM if you need help.

 

[josko]

With all due respect, I've gotta disagree with this concept.

The 'buy-and-buy-and-never-ever-sell' strategy is one strategy; it's not the only way to make money from property. This whole game is about finding a method that works for *you*, not just re-using someone else's ideas without adapting them to your own preferences and risk profile.

But then, you wouldn't be a property "investor" if you followed this strategy would you.

You would be a property "Developer".

Regards JO

 

[sparky23]

But then, you wouldn't be a property "investor" if you followed this strategy would you.

You would be a property "Developer".

Regards JO

Yes that is true aswell.

My strategy had been to develop and hold which has been a good strategy. My strategy now is to sit tight and protect what we have until I can afford to decide what my next strategy will be.

Thats the other point always keep your mind open to changing strategies as and when required.

 

[Sharpstone888]

This post and a few other posts have changed my views, I now view my goals as accumulating properties over the years and then later using the properties as a means to fund my lifestyle and cut back on work (hopefully full cut back).

This new view has mainly been inspired by Rixter and a few of hid posts, including a thread a few years ago.

Chris

 

[JamesGG]

But then, you wouldn't be a property "investor" if you followed this strategy would you.

You would be a property "Developer".

Selling doesn't necessarily mean developing. That was just one example provided by Mike.

I've been talking with these three people in the last few days;

- Person had 3x properties in Kalgoorlie; each doubled within about two or three years. Couldn't see that repeating so sold all three, used proceeds to purchase a single waterfront property in Brisbane.

- Person bought a strata deal, 4 units in a block. Within about nine months; arranged the separate titles, sold three and used proceeds to pay off one completely along with putting a deposit towards another similar project.

- Person has a strategy (going for three years now) of buying three properties per year. One blue chip to hold, two value-add properties to sell, which offsets the negative gearing on the blue-chip and provides deposits for future deals.

I dunno about you, but I consider all three of these people to be investors. Even if they regularly sell properties for a profit

There's any number of ways to make money from property. Holding (and hoping) with negative / neutrally geared property isn't always the best - and certainly not only - way to do it.

But as I said before... to each their own.

 

[Mindmaster]

5. refi deposits out of it when the value has increased, with a lender you are OK with and a good IR to buy another IP

Hi Propertunity, I've come across this step before several times but don't understand it properly. Could you please explain or give a link to a thread/page that explains.