Investing Strategies:

Discussion in 'Where to Buy' started by jpcashflow, 27th Jul, 2014.

  1. jpcashflow

    jpcashflow Member

    Joined:
    23rd Jun, 2014
    Messages:
    307
    Location:
    Melbourne
    With the property investing landscape ever changing, what strategies are you implementing for either existing properties or new investments?

    In the last 12 months, my strategy in Investing has changed. I used to be the type to buy and hold properties .

    But know I would rather grow my wealth through developing, we have just bought a site in East Keilor (Vic). We will be developing two units at the start of January 2015.

    Im a mortgage and my business partner is a builder and since we have been working together, we have both decided to move into this path.

    What are you guys currently doing???
     
  2. oc1

    oc1 Developer

    Joined:
    31st May, 2005
    Messages:
    1,827
    Location:
    .
    How did you become a MORTGAGE? :D
     
    D.T. likes this.
  3. strongy1986

    strongy1986 Member

    Joined:
    23rd Feb, 2012
    Messages:
    954
    Location:
    Beaumaris
    We look for properties that can be developed or sub divided.
    If the market say doubles in the next 15 to 20 years we can subdivide and pay of all loans
    Or just develop

    Also it's good if it needs a Reno as you can get a large property for the same price as a standard one
    I look at it as doubling the returns
     
  4. Mick C

    Mick C Mortgage Broker

    Joined:
    26th Jan, 2011
    Messages:
    2,048
    Location:
    Sydney, NSW
    First 2 IP were hold for CG...the recent 4 were Rental yield.
    Now looking at development...but small one's 3-4 units.
     
  5. Redom

    Redom Mortgage Broker

    Joined:
    1st Jul, 2014
    Messages:
    1,324
    Location:
    Sydney (West) and Canberra
    I bought my first few properties for C/F (NRAS). Aim is to use c/f from first couple properties to buy CG properties in the future. Bit of the reverse way of doing things, and would've made more sense in a slower market.
     
  6. jpcashflow

    jpcashflow Member

    Joined:
    23rd Jun, 2014
    Messages:
    307
    Location:
    Melbourne
    Thanks for the reply everyone....

    I think its good to share tips and strategies.

    PS how did become a mortgage lol .. I got married lol...
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

    Joined:
    29th May, 2001
    Messages:
    8,506
    Media:
    1
    Location:
    Melbourne
    That makes you a chattel ;)
     
  8. Ace in the Hole

    Ace in the Hole Don't compete, Dominate !

    Joined:
    30th Sep, 2002
    Messages:
    2,180
    Media:
    18
    Location:
    Sydney
    For all my investment properties properties, I've utilised the develop and hold method, never sold and kept them all.
    No more property investing for me, accumulation phase over.
    Develop for cashflow is the next stage, which is not really investing, just business transactions.
     
  9. r3ckless

    r3ckless Member

    Joined:
    31st Aug, 2013
    Messages:
    236
    Location:
    Sydney,NSW
    Said to myself, will be in the accumulation phase until I get married, have children and then wife goes back to FT work. Just got engaged a few weeks ago, just went unconditional on our last property. Loans are 80%/80%/89% LVR, and will wait until there is enough CG where I can keep lvr's at 80% and also get our 4th, and go from there. 5ish years for this to happen is around the number I was aiming for!
     
  10. oc1

    oc1 Developer

    Joined:
    31st May, 2005
    Messages:
    1,827
    Location:
    .
    My strategy is to add value. Doing this through developments and getting permits in place and selling.

    Have also started land banking sites that should/could yield more dwellings.
     
  11. sasjes

    sasjes Member

    Joined:
    27th Mar, 2014
    Messages:
    23
    Location:
    nsw
    ideal strategy

    We built a asset base then just used the equity to develop. We now hold some and sell some. If you think about it you need a massive net asset base minus costs to yield 5k a week cash flow. When you sell some developments as you go AS WELL AS HOLD SOME to continue your base growing, that's the ultimate really. No point just holding all developments when selling some gives massive cash flow, while holding the rest builds your portfolio as well and held stock should at least be neutral. I don't see a better strategy than this and it works amazingly well. This also allows you to enjoy "the life" much, much sooner than waiting for your base to become strongly positive.

    However all this assumes you understand property development. Big assumption for most people.
     
  12. Badger

    Badger Apprentice Investor

    Joined:
    6th May, 2014
    Messages:
    78
    Location:
    NSW
    First two IPs have been units with neutral and positive cash flow, now looking at houses on big allotments with minimal holding costs. plan is development a long way down the track.
     
  13. serendip

    serendip Member

    Joined:
    17th Jun, 2014
    Messages:
    286
    Location:
    Newcastle, NSW
    My strategy is evolving.

    I'm about to buy my first IP (hopefully). It's on a big block so I'll put a granny flat out the back & it will be well & truly CF+. I think it also has the potential for capital growth & is next to what appears to be a double block with 2 very run down houses so potential at some point for a development. Next step will be to buy new PPOR with renovation potential, ideally holding current PPOR as investment. Hopefully end of next year for that step. Going forward a combo of PPOR renovation & hold or sell depending on what's happening, the house etc. would like to do my first development in 3-5 years.