How long term are you willing to look when investing in Resi Property?

[oracle]

If these posts highlight one thing, its that resi IP is not a passive income solution, some of you seem to have almost full time jobs in keeping on top of all this!!

All investment asset classes has it's ups and downs. What I have found in my experience of investing in Resi IPs is what Murphy's law state. There are times when all investment properties require some maintenance done around the same time and then you get several months of lull with only thing you need to do is ensure the rent money gets paid on time.

I also invest in sharemarket. It gets very busy during the reporting season where you need to see how the business is going from the financial reports, what's the dividend going to be. Do you continue to hold, add or sell?

I guess you just have to invest in something that you like doing. There is hardly any passive investments out there that provide you with satisfactory returns.

Cheers,
Oracle.

 

[jingo]

If these posts highlight one thing, its that resi IP is not a passive income solution, some of you seem to have almost full time jobs in keeping on top of all this!!

I'd have to agree, Trogdor,

There comes a point (and I'm there now), when holding more resi just won't cut it. Not saying to sell and I won't be, but certainly looking at other asset classes - com prop and shares. No doubt com has it's issues, but a 10 year lease with all expenses paid by the tenant sure looks attractive to me at this point in time!

Shares - Keithj's strategy of using equity in his resi portfolio to buy into shares was certainly ingenious and the results over time are very attractive.

A combination of all asset classes isn't a bad way to go. No doubt others have managed to achieve financial independence through resi property and I'm not saying it isn't a viable strategy.

I just think there are other alternatives as well and an investor has to choose those that will suit their situation/personality and skill. I don't have renovation or any handy man skills - so obviously, the ongoing maintenance is more of an issue to me than those who may have these skills.

Have appreciated hearing HandyAndy's view as he obviously has an amazing portfolio built up over a long period of time. As has MTR - so their views are certainly appreciated and respected.

I like hearing from the more established investors who have been investing for 20+ yrs. This sort of experience is just hard to come by and is highly valued!!

Regards Jason.

 

[Trogdor]

All investment asset classes has it's ups and downs. What I have found in my experience of investing in Resi IPs is what Murphy's law state. There are times when all investment properties require some maintenance done around the same time and then you get several months of lull with only thing you need to do is ensure the rent money gets paid on time.

I also invest in sharemarket. It gets very busy during the reporting season where you need to see how the business is going from the financial reports, what's the dividend going to be. Do you continue to hold, add or sell?

I guess you just have to invest in something that you like doing. There is hardly any passive investments out there that provide you with satisfactory returns.

Cheers,
Oracle.

Not sure i agree. A big equities portfolio split across AFI, ARG, and MLT and a few CIPs.

No need to do anything for the LICs but bank the dividends. A bit of stress for the CIPs come option renewal time or reletting, but otherwise zero. And reletting does have its benefits, like a repaint and refit at somebodys expense.

And the LICs in the smsf get to compound at 15pc tax rate rather than 47pc for reinvested divs. And contributions are tax favourable. Of course doind the same outside the smsf as well, as who knows what rules will change, but too much of a free kick to pass up to run a parallel smsf strategy.

This is exactly what i am doing.

 

[Trogdor]

Shares - Keithj's strategy of using equity in his resi portfolio to buy into shares was certainly ingenious and the results over time are very attractive.

.

Agree, keith has done it brilliantly, and "gets it".

Would be good to get a post from him, he seems to be off SS these days......?

 

[handyandy]

If these posts highlight one thing, its that resi IP is not a passive income solution, some of you seem to have almost full time jobs in keeping on top of all this!!

I think I can safely say that I have tried just about all approaches over the years and have not found one approach that is passive.

IMHO the investment that would be the most passive is money in the bank (loosing to inflation) and then scaling up from there, both an increasing involvement required and the returns that are available.

Cheers

 

[CHAOS]

Jason appreciate your post. There are so many positive and success stories on here that make property investing sound easy / passive. These posts are inspiring in that they help you believe that you can do it too which is great.
However, I equally like to hear the other side. Your post keeps it real - especially for me. It is not all smooth sailing. Hearing the down sides from time to time helps because you know it is not just you experiencing challenging times. Furthermore, seeing people overcome the hard times is equally inspiring.

 

[Jacque]

Kudos to all the posters on this thread for their honesty and support.

Jason, I know exactly where you're coming from- holding and maintaining IP's can really be a drag sometimes and especially when the bills start rolling in! Recently I've had to pay for a HWS upgrade to gas ($3K) another HWS electric ($1800) new screens, door locks and new fencing. But, that's the downside of property investing. Properties age, they require funds spent, tenant rollovers, allowances for vacancy periods and grotty tenants- it's all part of the investment game.

Since we bought our first IP back in 1991 we have learnt a tremendous amount across the years and we've now dabbled in everything from resi to land dvpt to commercial (latest venture) - obviously my love of the whole industry spilling over into a new career from my previous one of teaching.

Sure, it can be frustrating some days but nothing is easy these days- my teenagers cause me far more angst and grief than property ever will
It's not really about the problems in life- it's how you deal with them that count. And always remember, this too will pass

 

[Oscar]

I look very long term with property, and all my investments.

My Sydney based properties are just about passive with 3 PM's doing a pretty good job. My properties in the US require more oversight, but usually just involves a few emails back and forth.

My share funds are completely passive, apart from checking the size of the quarterly dividends, I do nothing.

Despite all this, at some point in the distant future I will want to liquify all property investments and enjoy the simplicity of equities and cash.