Opinion on Metropole

[JIT]

That's much better than doing nothing and definately much better than buying a passive buy-and-hold in the same postcode over the same timeframe.

I still think that's debatable.

If I change my strategy and start buying outside my local area of knowledge to time the hot markets then I take on a different sort of risk.

Yes, I wouldn't change now, stick to your plan.

There's many different strategies and some are better suited than others depending on your personality and style as an investor.

Yes, very true.

 

[GoAnna!]

Except that I can't afford to buy $2M worth of completed properties with only $125K down. Also, I get the yield on $2.6M worth of property having only paid $2M for them.

I do understand where you're coming from though, and I think once this ones done that I might diversify a bit and look at buying a lot more higher yielding lower price point properties in identified growth corridors. Just seems to make more sense. But so far this development has been fairly low stress despite what the thread reads like. And the build process should be relatively low stress too. We've done that all before, but time will tell.

Put simply though, buying this IP in Sydney will realise me a $500K odd profit. That's much better than doing nothing and definately much better than buying a passive buy-and-hold in the same postcode over the same timeframe. I'm happy with that. If I change my strategy and start buying outside my local area of knowledge to time the hot markets then I take on a different sort of risk. There's many different strategies and some are better suited than others depending on your personality and style as an investor.

Cheers,
Michael.

Michael I think it's good to keep an open mind. In a rising market you can take equity out and buy again....and again......and again. In my last Melbourne purchase I had gained $100K in equity before I settled. Don't knock it until you try it ! You can trade if holding medium to long term is too painful. And holding land is not the stressful part.....trust me Holding at the end of a development with rising interest rates AND falling prices. Now THAT'S painful. Obviously there have been recent posts on that very scenario.

I am not saying you won't make good money on your current plan...but just keep a mind open to all the opportunities

 

[Bill.L]

Hi all,

Michael, It is obviously a leverage play, you get more bang for your buck if the banks will finance your development.

But if you had the starting equity to do either??? For example you talk of making $500k, but if either of us had taken the same amount of risk (I know hard to define), on some inner suburb Brissy property a couple of years ago that we were talking about, how would this compare??

My opinion (and without ever going down the route you have) is that the buy and hold works best(hands off). (I'm sure Frank Lowry would disagree).

bye