How we bought 20 IP's in 5yrs

[addicted]

hi brenda
one question
have you a certain number you want to reach in ips
or are you just gona keep on going ?
i told my partner ,that i think 10 ips would be just fine
and we would stop ,,BUT i dont think i was very truthful to my self
i can,t stop if i dont buy for about 6 months i get the craving
after i fix my money for my new house ,,,
i am going to get the biggest loc i can ,and the next one i will put 20% down for my daughter ,i just gota buy


i would like to know ,say 2 years from now ,how many you will have
we should have a guessing game you know like how many jelly beans in the jar ha ha ha after 2 years and the grand prize could be !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
you get to meet and speak with
THE QUEEN OF IPS !!!!!!!!!!!!! BRENDA !!!!!!!!!!!!!!

 

[Aceyducey]

Originally posted by Teresa
Wow, my head is spinning from reading all this.

We are just about to invest in property (made the decision about a month ago when we paid off our home), and it looks like we should have started years ago. You guys are so inspirational that it makes me feel like forgetting the research and just get out there and buy.

Teresa,

Good luck with the investing - but don't neglect the research!!!

Remember, anything that a performer does that looks easy took years of training.

Property investment is no different..the key to being able to make it look easy to find great deals, negotiate fantastic prices & create enormous wealth is to do your research properly!

Cheers,

Aceyducey

 

[brains]

addicted,

I think the point is not how many IPs but what total value of IPs does one want. If you go to the west coast of Tassie you can buy 20 IPs for about $300k. While in Sydney you would be lucky to buy a 2 br flat for that amount if youre within say 15km from the CBD.

Originally posted by addicted
hi brenda
one question
have you a certain number you want to reach in ips
or are you just gona keep on going ?
i told my partner ,that i think 10 ips would be just fine
and we would stop ,,BUT i dont think i was very truthful to my self
i can,t stop if i dont buy for about 6 months i get the craving
after i fix my money for my new house ,,,
i am going to get the biggest loc i can ,and the next one i will put 20% down for my daughter ,i just gota buy


i would like to know ,say 2 years from now ,how many you will have
we should have a guessing game you know like how many jelly beans in the jar ha ha ha after 2 years and the grand prize could be !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
you get to meet and speak with
THE QUEEN OF IPS !!!!!!!!!!!!! BRENDA !!!!!!!!!!!!!!

 

[addicted]

yeh i know brains,, trust me i know how much the prices are in sydney i.ve been watching them grow ,,,,i was asking just for fun ,,, i just sold my house for 580k , i bought it 20years ago for 66k ,,and 5 years ago we nearly sold it for 320k so the last couple of years have been great

 

[hwd007]

I am indeed also impressed.

That said, the one thing that does concern me about buying all these old IPs that are positively geared, is the maintenance bill over the coming years.

Have you done forward projections on this to see if the cashflow you are making now, wont all be consumed in repair bills a few years from now ?

I mean surely with old property things are always in need of repair.

 

[Brenda Irwin]

Well done addicted! I'm trying hard not to buy at the moment and your addiction post nearly tipped me over (it is fun tho isn't it.)

I think I'd like the rental return from 20 ip's in Tassie as opposed to a unit in Sydney but that's just me.

Hwd007 if maintenance looks like it may be exxxy on an ip in the near future what better time to sell & take the capital gain than in this hot market? There are always others prepared to do the major work to fix up a house to their own taste.

How many ip's? Who knows? Some I keep and some I sell to pay down debt (and avoid exxy maintenance). The important question is how much do I want to live on? Let you know when I get there.

Cheers Brenda

 

[bbg2003]

Net worth is what it's all about.
How much can you improve your networth with the least amount of effort.
I would never buy a unit in Sydney, but I would'nt swap 1 of my Sydney IP's for 20 in Tassie.

Why? Because compound cg in the long term will far exceed your (although very good) rental returns. Do the maths.
Just like monopoly its good to swap houses for hotels.

viva the "big smoke"
bbg2003

 

[hwd007]

Brenda, do you use estate agents to handle your properties ?

Also how do you deal with repairs ? I guess through the agent if you have one.

Do you make many insurance claims on damage to the property ?

thanks
007

 

[XBenX]

Originally posted by bbg2003
Net worth is what it's all about.
How much can you improve your networth with the least amount of effort.
I would never buy a unit in Sydney, but I would'nt swap 1 of my Sydney IP's for 20 in Tassie.

Why? Because compound cg in the long term will far exceed your (although very good) rental returns. Do the maths.
Just like monopoly its good to swap houses for hotels.

viva the "big smoke"
bbg2003

bbg - I would come to the same conclusion as you....

but I think we need to consider that some people may be in the income stage of their retirement plan and accumulation doesnt interest them...

 

[bundy1964]

Hi

The big trick is to go from CG to income with out a big tax slug especialy if you got your starting structure wrong.

bundy

 

[hwd007]

Yep I'm still quite new also, but have gone for brand new properties. now I am developing the theory similar to above in that even though I'm negatively geared, because I have bought brand new in good areas, I get high CG, thus my net capital worth appreciates more rapidly, but my liquidity gradually diminishes.

However even though I'm negative cash flow, my net capitalization outweighs the holding costs almost 10 fold. Thus in effect I'm really positively geared, just that I'm not liquid. I could sell for a cash win fall profit which would realize my liquidity and liquefy my cash losses. Now because I bought brand new in high CG areas, demand for my property would be expected to be high, so my ability to convert to liquidity would strong.

Thus I guess this could be seen to be reflective of a buy, hold then sell approach to cash up to then pay down some non IP debt and restructure some IP debt on older assets or use some to fund new IP purchases.

Anyway I'm still learning and its early days. One day I may have a go at an older rural IP with liquid positive cash flow.

cheers

 

[MarkB]

You certainly picked the right properties in the right area Brenda.

Lets hope you inspire us to do this as well.

You've certainly inspired me.

Sincerely

MB

 

[quoll]

Brains?

Brains said:
--------------------------------------------------------------------------
I think the point is not how many IPs but what total value of IPs does one want. If you go to the west coast of Tassie you can buy 20 IPs for about $300k. While in Sydney you would be lucky to buy a 2 br flat for that amount if youre within say 15km from the CBD.
--------------------------------------------------------------------------

I think it depends on what you want, if CG is it then lots of little +cf high yeild places might be considered bad, but on the other hand if you need cash flow they are great.

There is never just one path to a destination.

Quoll

 

[annE]

Hi Brenda

thanks for all the inspiration!!!.

do you have a trust or company for all your IPs? if not yet are you planning to do so at some stage?

thanks

ann

 

[Brenda Irwin]

Firstly, let me thank the people who came along to our BIG meet on the 26th Aug in Brissy. Les and I were guest speakers and I let Les do most of the speaking (he's got a better financial brain than me) and we thoroughly enjoyed the nite out.

Next to answer your question, anneE, of whether we have a trust or company setup, the answer is no. We didn't really expect to turn our investing into a large portfolio so never set up any trust or similar.

As none of our rellies have ever invested like this, there was no financial advice for us. Our accountant and our bank didn't think we'd stick to our investing without caving in and selling everything up for the capital gains so didn't suggest any structuring either.

So far, as joint tenant owners, we are doing quite well without a trust or company but maybe in the future it may well be advisable for us to look into a trust or a company setup.

Cheers Brenda

 

[Donna]

Hi Brenda and Les

It should be us thanking you two for your time and openess in speaking to all the Lucky Brisbanites who came along. Very Inspiring.

One question I thought of later (as you do) is, How did/do you estimate when you have enough equity to get your next purchase. Do you rely on personal knowledge, Real Estate Agents etc or do you actually get professional valuations on the properties periodically.

The other question (I know that's two). You showed us a book that you were using to educate yourself on the taxation bit. I forgot the name of the book, can you remind us all please.

Thanks Again

 

[asy]

Hey, Brenda and Les,

Thanks again for coming and sharing so openly.

For those who missed it, it was fantastic, no turn was left unstoned... (or is that stone unturned?) hehe

Les and Brenda brought their famous photo album and went through it in detail. How Les remembers all those details... wow.

Thanks again guys!

asy

 

[Bob Lambert]

BIG meeting

Thanks Brenda and Les.
Its so good (inspirational) to hear success stories like yours.

This was our first visit to the Brisbane Investment Group meeting. To meet and talk to people like yourselves and other property investors was fantastic.

Hope to see and hear you speak again soon.

Bob
Homebuyers Hotline

 

[ella]

And thanks to Brenda and Les from me too - it was also my first BIG meeting and it was really inspirational! Thanks for sharing your journey (so far!)

cheers
ella

 

[roughana]

Originally posted by bundy1964
Hi

The big trick is to go from CG to income with out a big tax slug especialy if you got your starting structure wrong.

bundy

I am very interested to hear more about what structures are "wrong" for this type of migration. As well as what structures are considered "right".
Would you care to elaborate on this topic please?
This probably should be an entirely new thread and may already be discussed elsewhere, in which case please point me towards the proper direction.

Thanks,
Andrew