My Story

[JIT]

Hi JIT,

Have added the figures of holdings at that time again I wasnt taking in all factors.

First House $248k loan $192k val $350k
T/H $140k loan 125k val 250k
House $234k loan $222k val $360k
House $246.5k loan $202k val $310k
Unit $160k loan $160k val $210k
TH $137k loan $132k val $195k
th $130k loan $125k val $220k
TH $173k loan $164k val $240k
Unit $165k Loan $150k val $230k
Loan $1472000 Val $2365000

These were actual numbers from the period, also take into consideration my portfolio was purchased in sydney and there was movement in marketplace where it fell in price between 2004, and 2008.

And this was limited to holdings at this point in my investing period, not ones which were sold, and not including other asset classes I was purchasing at that time (I held a signifigant number of Centro shares too which I got raped on) and I invest in coins too, along with surplus cash holdings.

Thanks for the clarification Nathan.

At 25, you've done exceptionally well.

One more question if I may... I'm wondering what sort of net income your property portfolio now generates after interest and property expenses/vacancy, that allows you the choice to work or not?

Regards.

 

[chasethesun]

Congratulations Nathan on your achievements so far, it's quite amazing what you have accomplished at your age and all of it through hard work and determination.

 

[WASP]

Agreed an inspirational read

 

[ansaurieng]

HI Nathan,

Thanks for the very inspirational story.

What is your thought on the Western Sydney market at the moment. I have had mixed opinions.

Cheers

 

[vaughan]

I have mixed opinions: glad I just bought one; sorry I didn't get more.

Note that not everybody is doing well with real estate: was chatting with owner occupier of house across the road, he paid MORE for it in 2007 than we did for ours in September and his is 4 bedder (ours 3). Prices are inching back up again now. Rents are increasing too.

 

[Deltaberry]

Haha it's hilarious you guys are asking him for his net income.

Such a personal question.

 

[Terryw]

Nathan

Great read and thanks for sharing.

May I ask if you use trusts?

 

[Nathan]

It has good upside in medium - long term.

Strong cash-flow which enables you to hold onto much more property holdings.

Easier to buy below market value % wise. - eg. $50k below on a $200k prop is 25% on a $500k prop is 10%.

Minimised risk.

Short term, I see it staying stable with the gradual rise. There is peaks and troughs but think were all well over the 2005 - 2007 bad times and won't see until the west and southwest experience another boom.

 

[Nathan]

Nathan

Great read and thanks for sharing.

May I ask if you use trusts?

Early days no, now days yes.

Its all a personal thing for each investor but for me its a minimisation of risk and estate/tax planning.

 

[Deltaberry]

Agreed - can't see much catalyst for growth in the 24 month horizon at the moment. Although 24 months is a long time and much could change, so I say this only based on what I know now.

 

[dredfern]

Hi Nathan,

Congrats on your amazing progress! Reading this thread now I can see your portfolio today has a very very strong cashflow, however I noticed when you began the thread 3 years ago you had quite a large cash shortfall.

Have you changed your strategy much over the years and would you do anything different if you were starting over again?

 

[Nathan]

I started my portfolio in Syndey with house and land where I targeted growth and instant equity, cash-flow was important but was difficult to get cf+ (Today its easier).

Today I buy anything based purely upon the numbers. Needs to be below market value, strong cash-flow + room for solid capital growth.

Only few things different, I am very conscious of cash-flow and tweak everything I can to maximise this on each property.

 

[Deltaberry]

Very good mindset.

 

[Melbournian]

of all your portfolio - have you ever sold anything or are you purely going with the equity reinvest etc? in those 5 odd years.

 

[sfulop]

*bump*

Hey Nath,

It's been a little while since there has been activity on this thread, however I'm sure a lot of people (including myself) are keen to see where the portfolio is at 12 months on...

Thanks for sharing all the information. It is an inspiration for all, especially those in their early 20's...

Regards,
Steve

 

[DaveM]

It's been a little while since there has been activity on this thread, however I'm sure a lot of people (including myself) are keen to see where the portfolio is at 12 months on...

In a post from Nathan in another thread a few weeks ago he is at 72 properties. He is also running a buyers agency.

 

[BHK]

i am glad i read this story

 

[Dazz]

In a post from Nathan in another thread a few weeks ago he is at 72 properties.

.....superb stuff Nathan....

I still remember that ABC show a few years back when you had 8 properties and all of your young bleating whining contemporaries surrounding you on the programme (fully encouraged by the ABC bleeding hearts who would listen to them) were constantly moaning about how hard it was to buy a property - just one - and how they'd given up.

When you mentioned you had 8 under your belt and you were reaching for the stars, they mocked you and made snide comments behind your back. I reckon the majority of folks are like that.

To be a stand-out, you need to do just about everything differently to what the others all do.

You're an inspiration mate - top stuff !!! Whatever you do, don't crash and burn, that'll just encourage them to moan more.

Onwards and upwards.

 

[JohnA]

Just read this old thread after it was bumped. Sorry if this question is obvious to experienced investors.

As for how quick, paid 234 for house 4/12/07 had reval @ 300 by april this year. Quickest will be 1 i paid 130k for currently doing a reval for 175k 3 days after settlement.

RE: buying under market value and then revaluing.

Trying to get my head around this.
You get properties revalued so that when you go for a new loan the LVR on your portfolio is lower (than before revalue) which means bank will lend you money to go again.

If you want your deposit back though - does this mean you must refinance using the new valuation so that equity can then be used to buy more.

If you do this with every property within a short time doesn't this affect your credit rating?

You mentioned your income was at the time 80-100k - how did you overcome serviceability, continue getting loans for the properties? (Is it because single male, no PPOR, no dependents at the time?)

 

[Hornsby Reso]

*bump*

Hey Nath,

It's been a little while since there has been activity on this thread, however I'm sure a lot of people (including myself) are keen to see where the portfolio is at 12 months on...

Thanks for sharing all the information. It is an inspiration for all, especially those in their early 20's...

Regards,
Steve

What's your story Steve?