IP portfolio that performs regardless of market movements!

Discussion in 'Property Market Economics' started by sash, 28th Oct, 2011.

  1. sash

    sash Member

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    Wehn I put my offer in the one in Annerley was priced at 269k ...so only a 9k drop....the one in Moorooka came down from 280k to 260k...so bigger drop.

    I could see the longer term potential.

    My target is 30 properties...I am only 7 away...now. :)

    I figure if I can retire at 52 (just over 4 years away)...it will take me till 82 to sell of them....the plan is to continue to buy every 2-3 with funds from selling ...this becomes a nevery ending packet of Tim Tams. :)

     
  2. Rixter

    Rixter $uper Investor (Retired)

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    You're doing exceptionally well sash.....I retired on property last year around same age as you.

    You're property havesting phase has the hallmarks of Peastman's. He sell's & buys every 2-3 years using the cashbond model....Did your plans model from him?
     
  3. sash

    sash Member

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    No...just a strategy I have been considering...for a while now. There are others which I am also working through. If I hit 30 properties that is too many..so will want to bring it down and go more blue chip but less properties.

    So you retired ....at 48? Wow well done! What sort of income (broad range will do)...did you get now?

    I want 120k-150k after tax and expenses. When super kicks (whenever that is ;)...that will be a bonus. The reason I need a bit more is I plan to travel quite a bit.

    Would love to hear how you traveling in retirement.



     
  4. New_Investor

    New_Investor Member

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    Well Done Sash

    Hi Sash,
    Thanks for sharing the information. it is really helpful.

    I just started this year, but I had the same concept of buying cheaper properties that can be neutral to positive, so I went away from Sydney and bought in QLD.

    I started my research last year, and this year I bought 2 properties in QLD. one in Logan for 290 renting for 350, and one in Ipswich for 235 renting for 300. both houses. I am earning around 100K's and my wife around 30-40. we have done well with our own PPOR, valued at 550, remaining 165. My LVR is 68%.

    I am not sure if I should go for another IP at the moment or wait for a while. what is the safe LVR?. I am still learning. but until now, all looks good, both houses are rented to good tenants, I am not paying anything from my pocket until now, rent is covering the loan + council rates. also the 2nd house was well below the market value, so it is expected get around 30-40K when evaluated.

    I hope you can have a look and advise, as I want to proceed to purchase more properties, but a bit worried that there is something i am missing.

    Also when will I hit the wall of no more loans for me?

    Thanks
    Ram
     
  5. Deltaberry

    Deltaberry Member

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    What about liquidating at 30 and buying something easier to manage? Like Dazz
     
  6. Rixter

    Rixter $uper Investor (Retired)

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    I reckon you'd have to ask Dazz wife if he's been easy to manage.
     
  7. sash

    sash Member

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    Not a bad LVR. Keep getting solid CF+ deals which have future CG initially....that will set you up for the future.

    If you get this right you should not hit the serviceability wall too soon. I still have not...I planning to borrow another 2-3m if all goes well over the next few years (3-5 years).:D



    How is the old boy....nothing which a clip on the side of head won't fix..
     
    Last edited: 13th Mar, 2015
  8. MsAli

    MsAli www.propertytwins.com.au

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    Well done Sash. Very inspiring!
     
  9. sash

    sash Member

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    Thanks Miss Sind. ;):D

     
  10. remingbi

    remingbi Member

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    Hi Sash
    Thanks for sharing all your tips
    Just wondering
    1) which structure did you buy the IPs in
    personal name, discretionary trust etc etc.....
    2) i know they say structured financing is important.
    which lenders did you use more at the latter stages of your property accumulation when comparing nab, amp macquarie, adelaide bank, me bank etc, and just if u have any preferences on these banks
    3) any recommended areas in brisbane now. it seems to be the area everyone is talking about now
    4) do u see it as a good time still to accumulate property in sydney or would u wait

    thanks
     
  11. sash

    sash Member

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    I like to keep it simple....so better to keep it in your name...just my thoughts.

    I like Westpac, St George and CBA...I like to lock in 15 year interest only period with not financial records updates till this period is up. Suncorp is good but will only go to 10 years with no financial record updates.

    Just came back from the Sydney Somer meeting...have recommended not to buy in Sydney. As for Brissie...buy somewhere in Brisbane where other people are not getting....look at north of Brissie within 25 klms of the CBD. To many people in Logan.

     
  12. k88k

    k88k Member

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    Wow I didn't know u can lock in 15yr interest only with those banks.

    Is there any restrictions if I do this, compared to the regular 5yr IO only.

    Thanks,
    K
     
  13. sash

    sash Member

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    Nope in the contract it will say you pay 15 yrs IO even if fixed. After 15 years you will need to pay PI.

    Be aware that the repayments will be higher as the bank will want you to pay off the loan within 15 years.

     
  14. redwing

    redwing Progress Not Perfection

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    Hi Sash,

    You would have locked in at markedly higher rates previously then.

    15 years is a long time

    Do you regret the 15 year term, or it's all set and forget
     
  15. Blair007

    Blair007 .

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    I think sash is meaning 15 years I/O. Variable or fixed rates would be a seperate matter
     
  16. k88k

    k88k Member

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    Sorry sash,

    Are you not allowed to further extend the 15yr IO period, ie longer than the 15yrs?
    Would the bank not allow this?

    As a beginner invester, and reading from this forum you can have IO for life, but with re-assessment with financials to support which I hope in the future would not b an issue.
    (And never pay off the principal)
     
  17. sash

    sash Member

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    With the new consumer credit legislation...it will be harder. However, if you re-apply for a new loan you can do this. But have an exist strategy as they will consider you age, serviceability, risk profile, etc. If they do...theoretically possible but who knows what the future holds.:)

     
  18. MIW

    MIW Member

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    I just revisited this thread and realised your great progress! I actually like the above two suburbs very much for growth, so well done. A family member even lives in one of them, and I think a friends' bakery is located in the other.
    Thanks, to SS members, and this forum I decided to continue, so have made acquisitions too, and was able to grow the portfolio beyond the 8 digits. In addition, I am now leveraging to seek more opportunities, and selling 2 "bad eggs", the less performing assets, as I call them. Managed to get a golden goose in SYD and added the renovation so increased the rental yield. In addition approved the equity releases in few millions like you suggested you may do in few years time. They may serve as buffers or for new acquisitions, time will tell.
    So will look for opportunities, meanwhile best of luck in your future travels!
    It seems time will do it's thing, as it did for the last 70 years for property in Australia....
    Congratulations and keep picking the apples of your trees! I will miss this site for sure!
     
    Last edited: 19th Jun, 2015
  19. Befuddled

    Befuddled Member

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    Inspired :) Very well done sash

    1. What's your approach for purchasing interstate? Say you have your eyes on one. Do you fly down to have a look then reassess or are you happy to make offers sight unseen?

    2. Did you ever use buyers agent when buying in a new area?
     
  20. sash

    sash Member

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    Thanks Befuddled...I usually go down for 2-3 days and look at every estate and get quotes from builder when it comes to new estates or see about 20-30 houses when down there. You have to be really organised.

    Don't use buyers agents...not a fan of them..