Poll: I have x Properties now
- Thread starter Blixsem
- Start date
G'day jack...sounds like you're serious. Absolutely use max LVR while building the flock. We started our IP journey in '96 (age 44) while still raising four kids, so don't use 'kids' as an 'out'. And kids ARE life...so don't miss the experience. Clearly you're young. Keep going. Many years ahead. LL
No ...what ever I do I end up within 33-42% LVR.
Thanks. No my story is not there but LL is...his is more interesting....
Thanks. No my story is not there but LL is...his is more interesting....
Sorry.
There ain't no official interview and never will be. But lots of posts. PM me if you need any specific info. I'll do my best for anybody who's giving it a good go. But we didn't do anything special. We just worked it bluuddy hard and kept our focus. It's all in Jan's books. Read them and re-read them. THIS IS the only game in town !!! The lady is an absolute treasure !! LL
There ain't no official interview and never will be. But lots of posts. PM me if you need any specific info. I'll do my best for anybody who's giving it a good go. But we didn't do anything special. We just worked it bluuddy hard and kept our focus. It's all in Jan's books. Read them and re-read them. THIS IS the only game in town !!! The lady is an absolute treasure !! LL
Was there a strategy LL, or just buying what you could, when you could over a long period of time?
Good question ...
I guess if there was a basic strategy it was buy/renovate/hold. And to be fair, that is not Jan's way ...she is pure buy & hold, and let the market cycles do their thing. Buy/renovate/hold came from (early) Peter Spann seminars. Renovated IPs are easier to rent and it ups the depreciation which helps cash-flow. We bought quite a few deceased estates (I love the smell of urine in a carpet ...especially if it's covering up some lovely old floorboards ) . Then, start near home if you live in an average suburb. Buy near infrastructure ( rail stations, freeway extensions etc). Then you need a mix of "cash flow" IPs ( we found some rundown small blocks of units that we reno'd ) and CG IPs i.e. capital cities. One helps feed the other. We started late, but the benefit of that is we had a heap of equity in our PPOR so we were able to fund lots of deposits when we found good IPs. Revalue regularly DURING the cycle and don't be backwards in changing banks. You will ALWAYS get a better deal as a new customer. And learn how to paint ...nothing adds more value. And keep doing it for 10 years every weekend..... LL
I guess if there was a basic strategy it was buy/renovate/hold. And to be fair, that is not Jan's way ...she is pure buy & hold, and let the market cycles do their thing. Buy/renovate/hold came from (early) Peter Spann seminars. Renovated IPs are easier to rent and it ups the depreciation which helps cash-flow. We bought quite a few deceased estates (I love the smell of urine in a carpet ...especially if it's covering up some lovely old floorboards
) . Then, start near home if you live in an average suburb. Buy near infrastructure ( rail stations, freeway extensions etc). Then you need a mix of "cash flow" IPs ( we found some rundown small blocks of units that we reno'd ) and CG IPs i.e. capital cities. One helps feed the other. We started late, but the benefit of that is we had a heap of equity in our PPOR so we were able to fund lots of deposits when we found good IPs. Revalue regularly DURING the cycle and don't be backwards in changing banks. You will ALWAYS get a better deal as a new customer. And learn how to paint ...nothing adds more value. And keep doing it for 10 years every weekend..... LLI'm guessing FI ... means Fixed Interest ...and IO ..means Interest Only. If not, I'm about to screw up. We tried FI once. TOO INFLEXIBLE. CAN'T CHANGE. CAN'T GROW .... Cost us HEAPS to break the deal. HEAPS. But we actually did it anyway as the deal from the new bank compensated plus plus. Hence forth always variable. Bank knows if you are variable you can jump ship in a flash. Also I once read a book by Mark Bouris (one smart dude !!) and he pointed out all the smarts behind FI deals. The punter ( you & me) rarely wins. Always IO ...yes yes ....even today when we are LOE. Any bank talks P&I rubbish just pick up your papers and leave. Nicely of course. LL
LL
Fully fledged slumlord
Nah theyre cheap. The first 3 combined worth the same as my ppor
I'm guessing FI ... means Fixed Interest ...and IO ..means Interest Only. If not, I'm about to screw up. We tried FI once. TOO INFLEXIBLE. CAN'T CHANGE. CAN'T GROW .... Cost us HEAPS to break the deal. HEAPS. But we actually did it anyway as the deal from the new bank compensated plus plus. Hence forth always variable. Bank knows if you are variable you can jump ship in a flash. Also I once read a book by Mark Bouris (one smart dude !!) and he pointed out all the smarts behind FI deals. The punter ( you & me) rarely wins. Always IO ...yes yes ....even today when we are LOE. Any bank talks P&I rubbish just pick up your papers and leave. Nicely of course.
Nah, you're spot on with FI-IO
Interesting to see the rationale behind your financing strategy also
Are you looking at Capital Growth as well as Yield, or predominantly yield plays to progress and any CG is a bonus?
Cap growth and or dev potential.
Serviceability is fairly easy because of yield, but need the above to generate "down payments" on subsequent.
Not really, the IP returns a return based on current market price????
Whats the return based on cashflow???????
Maybe in different periods of time your business would have generated a different return if you could flog it off for a much higher price.
Not comparing apples with applies.
To many people making similar mistakes on this forum.
Value is what I get, price is what I pay.
Far too many people extrapolating 'value returns' based on current market pricing of assets, as opposed to income returning returns.
If that market price changes, the results become doodoo.
Yet the income return might not fluctuate that much.
sorry mate no it doesn't.
Doesn't show much at all, except who is trying to show a bigger weener (and worse doesn't know the difference between size (quantity) and how to use it (quality/future returns).
Lol
