My Story 10+ Properties by 30 yo

[Tonibell]

You do seem to be following the Nathan Birch model very nicely - hope the Logan area has a few good years coming.

At the moment it seems you have something like $600K equity - I was wondering how much of that has come from your property investments and how much from other sources ? I'd guess perhaps it is 50 : 50.

We went about it in a different way by paying of a PPOR and then using that equity for property investments. This has meant that we really did not invest any of our own funds to get to a similar portfolio position as yourself (excluding our PPOR) - however it is slower. We also did renovations and granny flats to get the yield up to a similar point to youreself - rather than purchase in a high yield area.

Very interested to see where you go from here.

 

[Michael_X]

You do seem to be following the Nathan Birch model very nicely - hope the Logan area has a few good years coming.

At the moment it seems you have something like $600K equity - I was wondering how much of that has come from your property investments and how much from other sources ? I'd guess perhaps it is 50 : 50.

We went about it in a different way by paying of a PPOR and then using that equity for property investments. This has meant that we really did not invest any of our own funds to get to a similar portfolio position as yourself (excluding our PPOR) - however it is slower. We also did renovations and granny flats to get the yield up to a similar point to youreself - rather than purchase in a high yield area.

Very interested to see where you go from here.

It's closer to 70:30, 70 from property investing.

There are a few ways to skin the cat, and both end up at the same result

I have a good friend who is using your strategy and it's working well for him.

Cheers,
Michael

 

[jwu2]

Thanks for sharing! Great story and very inspiring!

How did you manage the insurance prior to the settlement of your QLD properties?

What is premium of building and landlord insurance like re your Logan properties?

Would you mind sharing your (Logan) property manger?s detail with me please? (via PM would be fine) Many thanks.

 

[Michael_X]

Thanks for sharing! Great story and very inspiring!

How did you manage the insurance prior to the settlement of your QLD properties?

What is premium of building and landlord insurance like re your Logan properties?

Would you mind sharing your (Logan) property manger?s detail with me please? (via PM would be fine) Many thanks.

I purchase the insurance once it becomes unconditional.

Building and Landlord insurance around ~$1,100 per annum.

PM sent.

Cheers,
Michael

 

[jwu2]

Thanks Michael, very much appreciated.

I thought in QLD, the purchasers should consider insuring the properties right after they exchange contracts. I was wondering what would be the best way to organise the insurance prior to the settlement. Do you pay the full year premium when you take out the insurance?

 

[Michael_X]

Thanks Michael, very much appreciated.

I thought in QLD, the purchasers should consider insuring the properties right after they exchange contracts. I was wondering what would be the best way to organise the insurance prior to the settlement. Do you pay the full year premium when you take out the insurance?

Double check with your solicitor That's the advice I was given to get the insurance at unconditional.

There are a few I pay monthly as I was given the option but most I pay upfront.

Cheers,
Michael

 

[Rolf Latham]

Double check with your solicitor That's the advice I was given to get the insurance at unconditional.

Good answer on the legal advice


I guess NSW talk exchange = unconditional

If the place burns down before finance approval you probably have an insurable interest, but I guess the lender would issue a declined letter

ta
rolf

 

[Rixter]

I thought in QLD, the purchasers should consider insuring the properties right after they exchange contracts. I was wondering what would be the best way to organise the insurance prior to the settlement. Do you pay the full year premium when you take out the insurance?

All my contracts, our solicitor advises to include the follow clause: the property remains the risk of the vendor until such time as settlement is effective.

 

[kak]

Hi Michael,

Thanks for posting such valuable information!! I have reached our Land Tax Threshold in NSW and are currently looking at Kingston Qld... I am thinking about a unit in one of the gated complexes. What are your thoughts on these and also can you recommend a good property manager for this area?

Thanks in adavance

 

[Rixter]

Hi Michael,

Thanks for posting such valuable information!! I have reached our Land Tax Threshold in NSW and are currently looking at Kingston Qld... I am thinking about a unit in one of the gated complexes. What are your thoughts on these and also can you recommend a good property manager for this area?

Thanks in adavance

Most those gated complexes have onsite managers that live there 24/7 and dont like external property managers cutting their turf. What's your reasons for Kingston? A part from it being low budget. What are you looking for the property to do for you?

 

[Mick C]

Michael,

* Clap clap* A BIG well done and thank you for sharing! I love hearing about IP stories and the journey/thought process. Best quote " Don't listen to the Goat Herder for advice on Jewellery! Hahah" and " 'The distance between your dreams and reality is action".

Keep it up buddy!.

Question- will you or have you considered selling your 1st IP ( epping studio) given it's performance? ie cut the lost and use the money else where?


Kuddos to Rolf and Beanie girl as well.

 

[Michael_X]

Hi Michael,

Thanks for posting such valuable information!! I have reached our Land Tax Threshold in NSW and are currently looking at Kingston Qld... I am thinking about a unit in one of the gated complexes. What are your thoughts on these and also can you recommend a good property manager for this area?

Thanks in adavance

Hi Kak,

I will send through two PM contacts. One I use and another who has come well recommended from a few others here.

On Kingston and gated complexes - I echo Rixter's post. Why Kingston and in particular gated complexes? That's a fairly tight niche.

Cheers,
Michael

 

[Michael_X]

Question- will you or have you considered selling your 1st IP ( epping studio) given it's performance? ie cut the lost and use the money else where?

Hi Mick,

Definitely have, came close last year. Kept the studio due to a good long term tenant in place and we managed to get an equity pull from it.

Cheers,
Michael

 

[kak]

Hi,

Thanks for the info. Ok there is no real reason behind picking Kingston, its just come up through searches, I'm mindful of cash flow and there seems to be some infrastructure happening in the Logan area. Being gated was just the thought that it might attract a tenant that will look after the place.

What are we looking for the property to do? Most likely a set & forget acquisition with little impact on cash flow and with the benefit of better depreciation being new. I'm open to other areas ... we are in NSW so tricky to sieve through the suburbs of QLD when we don't really know them.

Thanks guys!

 

[Gargamel]

Apologies if this has already been answered. How many properties per company and trust for each of your QLD purchases? Trying to decide the best way to go for my future purchases.

 

[Rixter]

I'm open to other areas ... we are in NSW so tricky to sieve through the suburbs of QLD when we don't really know them.

Not sure on your budget, however I've just returned from an IP fishing trip to Brisbane with another Sydney investor.

Have a trawl around Southside & Bayside areas for villas/townhouses.

Picked up 2 my type fish in each area and there is plenty more popping up on the echo-sounder to be taken.

 

[Nixba]

This is an excellent thread and congratulations for all of your achievements Michael. Plenty of lessons for us young investors and inspiration that it can be done and is being done.

Congrats again and keep the momentum going!

N.

 

[kak]

Thanks Rix I'll check into these areas , this is Russell Island etc yeah?

 

[Rixter]

Thanks Rix I'll check into these areas , this is Russell Island etc yeah?

No islands..its all mainland Brisbane southside & Redland bayside.

 

[kak]

Got it , I found those areas after sieving through a bit more