Taking the next step

Hi all,

This is my first time back on somersoft for a long time. I've been busy building/developing and watching my family get bigger for the last few yrs so excuse my absence.

I have finally found myself in the position i was aiming for when i first joined the forum, or a lot further down the road that is. I will finalise a development of 11 apartments in Brunswick (of which i intend to post a new thread as its been quite the experience) in March next yr. It's currently being fixed out/kitchens going in so it's nearly there.

Anyway the wash up of this project will see me retaining 5x 2BR & 1x1BR (total val $3m) with a total debt of around $1.2m as i sold the other 5 off the plan. It's been a slog but it will be nice to see my hardwork start to pay off!

Annual cashflow will be around the $80k mark (very roughly) and it's this aspect that i am wanting some advice on.
I am on the hunt for another development site but in the mean time i was wanting to diversify my holdings and do what a lot of wise people on this forum have done and put my cashflow into shares for a while.

I was thinking of a monthly direct debit into a high yeilding share fund ie Vanguard Inv? Or would i be better off into directly paying down the mortgage and keep the pressure on there rather than spreading things around?

I know this is a very open question but i thought there may be someone out there with a very specific strategy that i could learn from.

Also too some may say just push it all into the next deal, which i intend to do but looking long term i want to have a finger in both pies as the passive nature of share dividends looks oh so appealing compared to the full on (ie stressful!!) nature of building/developing!

I guess my question relates to an overall strategy for long term growth of my portfolio and i am quite prepared to pay for specific advice with someone but where to start? There're so many "experts" out there but what a jungle!

Anyway thanks for reading and i hope the post isn't too vague.

Cheers

Morty
 
Hi all,

This is my first time back on somersoft for a long time. I've been busy building/developing and watching my family get bigger for the last few yrs so excuse my absence.

I have finally found myself in the position i was aiming for when i first joined the forum, or a lot further down the road that is. I will finalise a development of 11 apartments in Brunswick (of which i intend to post a new thread as its been quite the experience) in March next yr. It's currently being fixed out/kitchens going in so it's nearly there.

Anyway the wash up of this project will see me retaining 5x 2BR & 1x1BR (total val $3m) with a total debt of around $1.2m as i sold the other 5 off the plan. It's been a slog but it will be nice to see my hardwork start to pay off!

Annual cashflow will be around the $80k mark (very roughly) and it's this aspect that i am wanting some advice on.
I am on the hunt for another development site but in the mean time i was wanting to diversify my holdings and do what a lot of wise people on this forum have done and put my cashflow into shares for a while.

I was thinking of a monthly direct debit into a high yeilding share fund ie Vanguard Inv? Or would i be better off into directly paying down the mortgage and keep the pressure on there rather than spreading things around?

I know this is a very open question but i thought there may be someone out there with a very specific strategy that i could learn from.

Also too some may say just push it all into the next deal, which i intend to do but looking long term i want to have a finger in both pies as the passive nature of share dividends looks oh so appealing compared to the full on (ie stressful!!) nature of building/developing!

I guess my question relates to an overall strategy for long term growth of my portfolio and i am quite prepared to pay for specific advice with someone but where to start? There're so many "experts" out there but what a jungle!

Anyway thanks for reading and i hope the post isn't too vague.

Cheers

Morty

Congratulations on your awesome development! I know the feeling your talking about... when you can finally exhale deeply and smile at your results from all the excruciating hard work. Well done mate!

Just be careful that by 'diversifying into shares' you don't unnecessarily risk your hard earned equity. I'm not saying you will, but just ponder that.

Personally I would just put it in an offset account until your ready for your next (bigger) development. IMHO I think the term ' asset diversification' (especially before a large amount of equity is made in the first chosen asset class, say 3-5m) into other asset classes is to a large extent overrated. This is just my opinion.

Well done again mate. Your options are many.

Leo
 
Yes, well done Morty, congratulations and welcome back.

If I was looking into doing what you are, Id be asking KeithJ, he's the man in the high yielding arena.

Once again welcome back.
 
Thanks for your comments guys.

LeoT good point mate and i absolutely won't be throwing all my equity that way! It's been too tough a road to build up and i want to keep pushing now that i'm seeing some results. Its just an avenue id like to explore.

Rixter thanks for that. I knew someone had mentioned this before i just couldn't remember who? I might send KeithJ a pm and hopefully get some advice.

Cheers

Morty
 
Rixter thanks for that. I knew someone had mentioned this before i just couldn't remember who? I might send KeithJ a pm and hopefully get some advice.

Btw..... I like the philosophy behind your team jv. How have you found it to be in relation to implementation & the system mechanics overall?
 
Hi Rixter,

I have successfully done a number of these now and it has helped considerably in leveraging into bigger projects. it is however a complicated process and now that i have some equity behind me i think i will move away from it a bit.

There's just a lot of legals to consider, as well as having so many interested parties to keep happy. I think that it;s been great to get me to a certain point and there's huge potential to take it further but i prefer the freedom of doing my own projects.

I am a bit the same with client work however have been very lucky lately with some fantastic clients.
The dream for me is only doing my own stuff and i think i'm nearly there.

Cheers
Morty
 
Hi Rixter,

I have successfully done a number of these now and it has helped considerably in leveraging into bigger projects. it is however a complicated process and now that i have some equity behind me i think i will move away from it a bit.

There's just a lot of legals to consider, as well as having so many interested parties to keep happy. I think that it;s been great to get me to a certain point and there's huge potential to take it further but i prefer the freedom of doing my own projects.

I am a bit the same with client work however have been very lucky lately with some fantastic clients.
The dream for me is only doing my own stuff and i think i'm nearly there.

Cheers
Morty

Yes thats the issue I was thinking it could have.... the issues brought about with just a one partner jv would be head ache enough, let alone bringing 15 of them into the equation. Nothing beats being the one who makes all the decisions and collects all the fruits as well. Keep it simple is my motto.
 
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