How is this portfolio looking ?

[parra1]

Hi All,

Hoping some of you fine people can give me some feedback on how my portfolio is going. Wife having some health issues and I am having one of those " what if moments ". In a nutshell :

PPOR : owned outright Valued at $600,000 Sydney

Investment 1 : Medowie NSW Bought 2006 $290,000 Now $ 330,000 almost positive

Investment 2 : Douglas ( townsville QLD) Bought 2007 $ 400,000 Now $430,000 Rent sliding and negative geared

Investment 3 : Burton, South Australia Bought in 2008 $359,000 Now $450,000

Investment 4 : Caddens ( Orchard Hills NSW ) Bought 2014 $550,000 Now $ 600,000


So 4 investment propertys all negative geared. Townsville is very flat at moment, Medowie is rising, Caddens Rising, Burton Rising.

Looking OK or just plodding along. Thinking of selling Medowie and Townsville and possibly getting another one in Sydney ...

Thoughts. Greatly appreciated. Would you consider this a good Portfolio or average or terrible.

 

[D.T.]

Id prob drop the Douglas one, the rest seem ok.

whats your timeframe on wanting a result from this property investment gig though? If its soon then you need to stop just buying stuff for the sake of it and be more decisive and agressive.

Or if its more than a decade away then keep going as you are. Still try to get on each cities wave though.

 

[parra1]

Hi

I have a 5-10 year outlook. By that time , the demands of the kids will kick in and I will be looking at freeing up some cash to pay for UNIVERSITY, cars, houses etc.....

Then again, if they are not likely to jump much further, I may need to cut a few off and look at other options.

Thank you

 

[strongy1986]

I would drop the Douglas one too

We are under contract on a house in townsville.
Realistically Douglas is an outer suburb with newer housing stock so I can't see it going up in value too much

 

[Terry_w]

$30k increase in 7 years and negatively geared? You are probably losing money on the Douglas one...

Medowie isn't much better!

 

[strongy1986]

$30k increase in 7 years and negatively geared? You are probably losing money on the Douglas one...

Medowie isn't much better!

One we will hopefully buy is 400k

Last owners bought for 480 in 2007

Where was the 7 year cycle on that one

 

[D_One]

Is there a reason you are buying in regional areas? The capital growth on that portfolio looks pretty poor. I would be reconsidering my strategy if I were you.

 

[strongy1986]

What sort of properties are burton and medowie?

If they are just normal houses then I would take the money and reinvest in better spots
450 in Adelaide can get you into better locations - under 10k fairly easily for a house
Same in Newcastle

I hope you havnt been buying house and land packages because it looks like you might of been

 

[parra1]

Hi Strongy & others

All my homes are defence housing ( DHA) and we just feel comfortable with that strategy. However, the Douglas one is now local market as lease expired. Been waiting for Douglas ( Townsville ) to take off for a while now. Just bubbling at the moment which is frustrating. Seriously need to look at my portfolio now.

They are all good quality 4 bedroom houses to the high standards set by DHA. Obviously selling them and the costs associated will hurt cash flow but I need to get our future sorted out.

 

[D.T.]

Do you mind me asking how much debt you have against those?

 

[Terry_w]

They are all good quality 4 bedroom houses to the high standards set by DHA.

But this doesn't mean they are good investments or worth keeping. You need to consider what you think the potential growth from now will be and will this return making holding them worthwhile. Think of the oppportunity cost of holding them - where the funds could be invested elsewhere at higher returns and also the proceeds used to reduce non deductible debt.

I think DHA are generally bad investments.