My Story 10+ Properties by 30 yo
- Thread starter Michael_X
- Start date
Have you hit a servicing wall yet?
Personally I would find it hard to sit back after the acquisition phase after going so hard for 2 years to wait for the growth. Do you expect to be purchasing any more properties in the coming years? How long do you expect until you move into the next phase?
Very interested to see how the next 2 years goes for you Michael.
I am pretty close to hitting the wall, might have one more purchase left.
After that, I will sit tight for a few years and focus on starting a business around mortgage broking Pending how this goes that will allow me to move onto the next phase.
This could be property developing or like some other experienced investors have done, diversify into shares.
Congrats Michael!!!!
Your determination and focus will reward you handsomely!!!
Love hearing stories like yours because often as an investor we come across bumps in the road, like I am sure you have, and its great to see that your determination has helped you get over your bumps.
I read that you used a BA initially, but for your rapid expansion in to qld, did you use a BA or did you go alone?
Best wishes to you!!
Tgan
Your determination and focus will reward you handsomely!!!
Love hearing stories like yours because often as an investor we come across bumps in the road, like I am sure you have, and its great to see that your determination has helped you get over your bumps.
I read that you used a BA initially, but for your rapid expansion in to qld, did you use a BA or did you go alone?
Best wishes to you!!
Tgan
In the end I did it myself but did explore the option of BAs when I first started looking in Brisbane.
There are so many experts on Somersoft so I leveraged their expertise. Spent quite a bit on airfares and alot of time on the ground.
If time isn't on your side then BAs can be a good option. I had a few chats to Andrew Allen and he was always very helpful.
That is great Michael...I too have been traveling to Brisbane since 2003 and have just returned from an IP shopping trip there with an investor from Sydney teaching him.
My philosophy as well - hand a man a fish and feed him for a day, teach him how to fish and feed him for life.
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Xia pronounced 'Sha'
We've been pronouncing it as 'Zia'
Thanks for sharing your story. Always interesting to see how others have gone about it.
Are you nervous about having such a large debt? This strategy obviously works well when house prices go up and interest rates are so low. Have you gone down this path with the assumption that prices will rise indefinitely?
Are you nervous about having such a large debt? This strategy obviously works well when house prices go up and interest rates are so low. Have you gone down this path with the assumption that prices will rise indefinitely?
Agree, Rolf is great, very smart man
Not stupid at all! That was one of my big questions when I started.
Best advice is speak to an experienced accountant as everyone's situation is different. Paul@PFI has made some good posts on this topic.
Personally, I maxed land tax in QLD before looking at purchasing in trusts. After I hit the $600k threshold then I created Trusts for future purchases. Each trust comes with a $350k threshold.
My NSW properties are under my own name.
I don't mind having a large debt. To me it's good debt as opposed to bad debt. If the debt was on non-asset loans then I would have trouble sleeping at night.
If prices drop I actually don't mind. As long as the cashflow/rent is there to support the portfolio. If interest rates go up then it will certainly hurt but that's also why I have focused on decent yields to allow for that buffer.
Vacancy rates is another concern with the buy and hold strategy so I only purchase in areas with less than 3% vacancy rates.
Looking back, I would say
1. Wouldn't have purchased off the plan studio.
2. Spent less on my first renovation. The key question I should have asked myself is 'Will this dollar I spend on renovation increase the rent?' If no, then don't do it
3. Wouldn't have bought in a regional area. It may come good but feel metro areas have more potential for capital growth.
