strategy thoughts.

[Aaron Sice]

Exactly my point Bobby..some had to start from scratch through the higher risk and up into the lower risk big end. Catch 22 cant stop at the top without enduring the higher risk lower at some time.

We all have to start somewhere, I guess. I'd rather start clever than the path most travelled and use what I have already as a stepping stone advantage.

These resi deals I'm putting together now are pretty juicy but they generally require presales. One or two of these and I could buy a small comm prop outright. So many options, but I just need a heads up on whether the strategy is feasible long term or not.

Cheers for the responses everyone.

 

[Rixter]

Aaron as you already know with most things one needs to conduct their DD then make a decision based on it. If the Pro's (benefits you obtain from it) out weigh all the Con's (risks) for you personally then its a goer.

Whats right for one person wont be for another because we are all different - having different goals, time frames, financial starting points all based around our own personal risk profiles.

Best of luck in what ever you decide. I know you are committed to you & your families future no matter what you decide!

 

[BV]

I mean the best yield I've seen, off the shelf, is 6.2%, which in no way reflects the risks involved at the bottom end of the Market

Aaron
Then why do it?
Considering the vacancy risk and the low gearing there is no way I'd look at CIPs with such low returns

 

[Aaron Sice]

Aaron
Then why do it?
Considering the vacancy risk and the low gearing there is no way I'd look at CIPs with such low returns

My point exactly, which is why I plan to boost the yield to nearly double that with a zoning and use change.

I can only manage it against acceptable development provisions in the structure plan, so it'll be about a 120-180 day process to have the change passed. It only works against a couple of properties in any designated general industry area, so like I said, it's a painful wait.