Strategy - need to change ??

[molly1a]

HI All

Just wrote the longest thread and went to post it and lost it hear I am starting it again.

We started investing in the year 2010 we have 5 investments plus our PPOR . We originally had a strategy of buy and hold thinking we would but 12-14 propertys sell a few in a few years and pay some debt down living off the rent.
As time has gone on we feel that this may not be fast enough for us now as we are in our 50s and would like to retire in approx 5 years.

Currently we are thinking we need to make growth happen, we have considered the following
Buy house put Granny flat at the back this will create cash flow not sure about growth
Buy house do a reno which should create a better rent and be revalued at a higher price ( currently our purchases have been approx 280k - 320k not sure if we would have to buy in a higher price bracket to create a better profit ????

Not sure what other strategy we could use any suggestions from this forum is appreciated ??

We have been looking in the Newcastle, Central Coast area, but both have either had growth or are experiencing growth ( if only we had bought there 2 years ago.. we would have made a profit . Timing is obviously very important We have looked at Queesland, the areas have been Woodridge , Redbank Plains etc . I also read on the weekend that Morayfield and Banora Point have a 10% predicted growth in the next 5 years any thoughts on these areas ?

The only negative thing is that we live on the Central Coast and if we were to do a reno I am not sure how easy this would be if we chose Queensland
Any thoughts, suggestions regarding the above post is appreciated

Thank You

 

[thatbum]

So in summary, was your original strategy "buy and hold", and now you want to try something else?

 

[molly1a]

Hi

Yes thats right we were all about buy and hold. We feel that when we started in 2010 buy and hold was right for us just not sure now.

I feel that it may not be the right strategy, due to needing good growth in a short time frame 5 years.

Thanks

 

[thatbum]

I feel that it may not be the right strategy, due to needing good growth in a short time frame 5 years.

Fair enough. If you wanted growth though, I'm not sure why you thought a GF build was one of the options?

Have you read about some of the other strategies here that people use?

 

[Aaron_C]

The only way to accelerate growth is development. Granny flat is more a cashflow strategy as you are not 'growing' your asset base more than what you put in.

 

[LeoT]

" The only way to accelerate growth is development"

Thumbs up to that!

 

[ellejay]

I don't think there's an easy answer. As you know, there isn't a place that is certain to provide the growth you need in five years. If there is chances are people have already been buying there and pushing up prices. In any case properties fitting that spec are likely to be negatively geared, which sounds like not a good fit for you. Have you thought about other strategies such as semi retirement/EER to reach your goals?