How many Properties in your Portfolio?

Hi everybody,

Well I'm new here and have been reading through these forums for the last few weeks and have managed to glean a significant amount of information about IP's which is incredibly helpful in planning my long term investment strategy. However one thing that I have found a lack of was numbers on how many properties do people have in their portfolio's.


So, who wants to take the plunge and say some numbers? In saying this I can see this in some cases being quite personal and understand this, it is just that I have taken quite a top-down approach in understanding this investment field, and would like to gauge what sort of scale you guys are taking.
 
Gee u don't muck around CP. First post straight down to business.



Can't we have dinner and a movie or at least a coffee after work first? It's not RSVP.
 
Well thats me Bigtone, I'm well known for being straight to the point and quite frank. :)

Just another question to pose while I'm here, I've noticed a lot of people here reno/wait for equity increases from market and then top up their loans, why is this? What benefits does this create opposed to loan reduction?

Thanks in Advance.
 
I can also be frank and say:
What bizness of yours is it?
Why should anyone tell you?
And there's plenty details and numbers on this forum if you want to search.
Imagine going up to a table at a bar and asking that same question to a bunch of people you never spoken to before.
And "Please" and "Thank you" always helps when asking for something.

There's a lot of good stuff round here, but don't be too demanding on your first posts or act as if the world owes you anything, cause one of life's lessons is that "nobody owes you anything". Even if the people employed by the gov may have different views.

I'm well known for being straight to the point and quite frank too.
 
Well thats me Bigtone, I'm well known for being straight to the point and quite frank. :)

Just another question to pose while I'm here, I've noticed a lot of people here reno/wait for equity increases from market and then top up their loans, why is this? What benefits does this create opposed to loan reduction?

Thanks in Advance.

major benefit, OPM Other People's Money, when Other People will give you more money, take more money
If you have no need for it right now, take it anyway, when you do need it Other People may not want to give it to you

ideally :: given $x is the value of a "property" and properties return $.333x each year (highly simplistic)

now
reduce loan, ==> $x in equity and 3 properties
Use gains to get OPM, ==> $x in equity and 3 properties​
later
reduce loan, ==> $2x in equity and 3 properties
Use gains to get OPM, ==> $x in equity and 4 properties​
later
reduce loan, ==> $3x in equity and 3 properties
Use gains to get OPM, ==> $x in equity and 6 properties​
later
reduce loan, ==> $4x in equity and 4 properties
Use gains to get OPM, ==> $x in equity and 9 properties​
later
reduce loan, ==> $4x in equity and 3 properties
Use gains to get OPM, ==> $x in equity and 13 properties​
later
reduce loan, ==> $5x in equity and 3 properties
Use gains to get OPM, ==> $x in equity and 18 properties​
later
reduce loan, ==> $6x in equity and 3 properties
decided 18 is enuf ==> $6x in equity and 18 properties​
later
reduce loan, ==> $7x in equity and 3 properties
decided 18 is enuf ==> $12x in equity and 18 properties​
later
reduce loan, ==> $8x in equity and 3 properties
decided 18 is enuf ==> $18x in equity and 18 properties​
later
BUY BUY BUY, ==> $8x in equity and 3 properties = 8 properties +$x cash
decided 18 is enuf ==> $18x in equity and 18 properties = 18 properties and $6x cash​
later
retirement, ==> 8 properties $3.666x cash
retirement ==> $18 properties $12x cash​
later
retirement, ==> 8 properties $6.333x cash
retirement ==> $18 properties $18x cash​
later
retirement, ==> 8 properties $9x cash
retirement ==> $18 properties $24x cash​
with apologies for a very broad brush​
 
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Interesting first post CJP. Rather a blunt first up question and not likely to build rapport terribly quickly, however in the spirit of sharing, here's a poll I found for you from not too long ago that may give you an idea to the info you're seeking:

http://www.somersoft.com/forums/showthread.php?t=40683&highlight=properties+poll

Have a navigate of the search function on the main SS home page and also every sub-forum that may be relevant to your query.....this forum is a veritable font of information and experience. :)

Welcome by the way.
 
Just remember, its not the size that counts, it how you use it :rolleyes:

This is very true, i think many people don't realise it. You can have 10 really poor investments whereas someone else could have 5 (or less) and be much better off.

CJ, not many will openly tell you exactly how big their portfolio is.

Personally though, i have nothing, zip, zero..well for the next month or so! Then i'll hopefully have IP 1 :D
 
Thats what I thought Lil Skater, most people don't like to divulge much on their financial situations, unless they're doing exceedingly well of course! :p

Also thanks Player for searched thread, that was exactly what I was looking for. It was just getting a bit hard seeing a rare comment here and there to the varied sizes of portfolios, was having trouble grasping to what extent people are investing.

AlmostBob:

So are you saying that it is better to take advantage of the OPM instead of paying down, and then using this to buy another property when the loan is reduced?

Brick wall of information! Thanks guys :D
 
Well thats me Bigtone, I'm well known for being straight to the point and quite frank. :)

Just another question to pose while I'm here, I've noticed a lot of people here reno/wait for equity increases from market and then top up their loans, why is this? What benefits does this create opposed to loan reduction?

Thanks in Advance.

Don't mind Bigtone, I think he likes being chased and courted. He's a top bloke!
I follow the above strategy. I'd rather put those funds to work in another asset that increases in value over time. Paying down the loan is a valid strategy, but a different game altogether.
I'm trying to build an asset base by controlling (not owning) as much real estate as possible.

In answer to your first question ... 7 properties. $2.5m.

I also like: Walks on the beach, dogs.
Fav Movie: Shawshank Redemption
TV: Life, Sopranos, Bones, Castle
Sport: Karate, Boxing, Running and RPM classes at the gym
 
Hi Welcome to the forum.

If you are looking for inspiration I recommend you read the interview section as there some great stories in there.

If you want more juicy stuff I recommend going to one of the meeting point meet ups as people are usually more open once you meet them face to face for a chat. I believe that the Adl members have regular meetings/seminars they meet at, not sure however, as I pay more attention to the Melb meet ups.

If you are after some dirty laundry stories here is a quick run down of my dirty linens.

PPOR: 2bed 1bath unit in Chelsea Melb. Bought in ~2003 by my wife. Current market value ~$340k paid off completely, but used as collateral for our most recent purchase.

IP 1: 2bed 1bath townhouse Seaford Melb. Bought by me in `06 current market value ~$300k we have ~40% equity, it is negatively geared after all costs. Bought originally when single as a PPOR, but rented once married. Aim is to sit on this for the foreseeable future. It currently cost ~$3000 per annum to hold.

IP 2: 4bed 1bath weatherboard house Chelsea Melb. Settled Dec 09 ~520K, Bank gave us 110% loan due to using PPOR as collateral. It is negatively geared. This beast costs us ~25k per annum to hold. Aim is to plow our saving into it until hits positive. If we are lazy it will take us ~6years to get it to positive. If we hustle we aim to have it positive sooner.
 
Gee Thanks Robbie W!:)

CJProperty

loan reduction = hard work

growth = easy! happens in your sleep, u make more $$ at night when
asleep than u do during the day at ur job

Jonril -

I hope paying off that Chelsea property ( great purchase, will be a big winner i think) is into an offset account and not directly onto the loan?
 
In answer to your first question ... 7 properties. $2.5m.

I also like: Walks on the beach, dogs.
Fav Movie: Shawshank Redemption
TV: Life, Sopranos, Bones, Castle
Sport: Karate, Boxing, Running and RPM classes at the gym


ROFL!!!

To the question of having less higher value properties or more lower value ones, I have 6 IPs. total value approx 1.2mil, gross rental about $3Kpa less than total interest.
I like gardening and cooking, The Simpsons, The Matrix and Fightclub.
 
Jonril -

I hope paying off that Chelsea property ( great purchase, will be a big winner i think) is into an offset account and not directly onto the loan?

Yes we have an offset CBA call it a MISA account. Thing is with our MISA we have been told it is only 50% offset when the loan is IO. It will be 100% offest when the loan goes P&I... I think we are a being duped by the in house CBA broker. When a few things settle down I think it will be time to head down to the branch and kick up a fuss :p
 
In answer to your first question ... 7 properties. $2.5m.

I also like: Walks on the beach, dogs.
Fav Movie: Shawshank Redemption
TV: Life, Sopranos, Bones, Castle
Sport: Karate, Boxing, Running and RPM classes at the gym


Now there's Somersoft's most eligible bachelor if ever there was one. ;)
 
Starting to get the gist of your guys planning.

So essentially then you focus on working on a LVR and managing your risk, than paying down debt. Then at a later point when comfortable you just stop buying up?
 
PPOR and 1 IP, total value around $740K with LVR of 69%. Plan to buy IP 2 end of next year bringing my LVR to just under 80%. I'm fairly new at it, but am taking the slow and steady approach.
 
Starting to get the gist of your guys planning.

So essentially then you focus on working on a LVR and managing your risk, than paying down debt. Then at a later point when comfortable you just stop buying up?

I think there are too many different people who make up this forum, each with different plans to narrow it down like that.
 
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