Why Do Most Investors Stop Purchasing After Two Properties??

[JessP]

Most people (including many so called 'experts') would tell you it is virtually impossible to get more than 2 IPs - in a short period of time anyway. I've just spent the past couple of months trying to find a broker who won't laugh at me (and I have somersoft to thank for that!).

And you are right, not too many people have an interest in property. Most want financial freedom but have no idea have to make it happen. Are we fortunate that we love property? I think so. Not sure you can be successful at something without the passion.

 

[DaveM]

Most people (including many so called 'experts') would tell you it is virtually impossible to get more than 2 IPs - in a short period of time anyway.

I have bought 4 in 5 months so its definitely not impossible

 

[oc1]

I have bought 4 in 5 months so its definitely not impossible

Nice work Dave

Cheers Oscar

 

[kathryn d]

LOL... no, not always.... how about a CIP configured for 5 tenants, or a block of student accommodation or .... use your imagination

We actually did a development that was going to be marketed as student accommodation. (11 unit)
We found there was more of a market when we opened it up to the general population, and were more flexible in our leases, the second year of operation.

 

[hysterical]

I have bought 4 in 5 months so its definitely not impossible

And here i was thinking I've done all right, having bought 2 in a 6 months period....Kudos DaveM.

Definitely not impossible and I am starting the process for my 4th....

 

[Deltaberry]

I never stop. We have more than 20 addresses now on the main streets of this city. My aim is to get to 50 soon.

 

[Rixter]

I never stop. We have more than 20 addresses now on the main streets of this city. My aim is to get to 50 soon.

Well done on your achievements. How many do you need to attain all up and how did you derive at that number?

 

[Deltaberry]

No particular number. I just like buying things if I can afford it, especially prime things.

I think this country has some good legs and a lot of potential in the long term. In the medium term though, I'm waiting for a few Asian economies to falter before I make my move back on Hong Kong and Shanghai.

US/Europe too far/hard to me to understand even though the opportunity is probably there right now.

I think business is the key to getting the cashflow to keep going. Bit of a Harvey Norman/Bing Lee strategy I guess. If all you did was rely on property cashflow, well you'd need to start with a lot to get some meaningful cashflow.

 

[Dan_p]

I never stop. We have more than 20 addresses now on the main streets of this city. My aim is to get to 50 soon.

well done, what keeps driving you?

How long until you purchases start making money for you? or are you putting in a pretty good deposit immediately?

 

[nhg]

I never stop. We have more than 20 addresses now on the main streets of this city. My aim is to get to 50 soon.

Resi or CIP? If Resi I assume land tax would chew up a lot of your profits.

What kind of returns do you seek for each property mind me asking.

 

[Peter 14.7]

Resi or CIP? If Resi I assume land tax would chew up a lot of your profits.

What kind of returns do you seek for each property mind me asking.

FYI We pay land tax and overall it is not that large. It is annoying but only around $100 per property. I would rather have 20 IPs and pay tax then none and watch shares drop like yesterday.

Peter 14.7

 

[nhg]

FYI We pay land tax and overall it is not that large. It is annoying but only around $100 per property. I would rather have 20 IPs and pay tax then none and watch shares drop like yesterday.

Peter 14.7

I have a property, didn't realise I had gone over the land tax threshold.

$249k, rent $320/week, land valued at ~$180k in NSW so 1.6% is $2880/year.

I haven't stopped investing, just changing strategies and looking at interstate. Am liking SEQ a lot more now. 750k threshold, and 350k under trusts from memory.

 

[HotRod]

I'm averaging about $350 per property which is still nothing.

If that breaks the back of your property investing, then you probably should not be in the property game.

 

[Thann]

Back to the OP:

We're up to three now, more or less neutrally geared.

The only reason we are pausing is because She Who Must Be Obeyed has decided it's time for an upgraded PPOR

 

[nhg]

I'm averaging about $350 per property which is still nothing.

If that breaks the back of your property investing, then you probably should not be in the property game.

Agreed,

My point is however:

QLD
https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

and

WA
http://www.finance.wa.gov.au/cms/content.aspx?id=239

Is negligible compared to:

NSW
http://www.osr.nsw.gov.au/taxes/land/rates/#Thresholdandratesfor2013

I'm not talking $300, I'm talking $3000 for a not that great property (10 weeks rent in extra tax) and it goes from 1.6% to 2% after $1M (not that far away). I can see why negative geared NSW investors just stop in their tracks.

I have started looking in SA and SEQ for my next purchases. Also shifting to commercial purchases in the long term.

 

[monalisa]

Agreed,

My point is however:

QLD
https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

and

WA
http://www.finance.wa.gov.au/cms/content.aspx?id=239

Is negligible compared to:

NSW
http://www.osr.nsw.gov.au/taxes/land/rates/#Thresholdandratesfor2013

I'm not talking $300, I'm talking $3000 for a not that great property (10 weeks rent in extra tax) and it goes from 1.6% to 2% after $1M (not that far away). I can see why negative geared NSW investors just stop in their tracks.

I have started looking in SA and SEQ for my next purchases. Also shifting to commercial purchases in the long term.

I think the premium rate kicks in at around 2.5 million in NSW.

 

[nhg]

I think the premium rate kicks in at around 2.5 million in NSW.

Yeah $2.48M my bad. Still plan on getting past that point in the hopefully not to distant future

 

[HotRod]

I think the premium rate kicks in at around 2.5 million in NSW.

But that's $2.5M unimproved value.

Still quite a bit.

 

[Peter 14.7]

I have a property, didn't realise I had gone over the land tax threshold.

$249k, rent $320/week, land valued at ~$180k in NSW so 1.6% is $2880/year.

I haven't stopped investing, just changing strategies and looking at interstate. Am liking SEQ a lot more now. 750k threshold, and 350k under trusts from memory.

Didn't realise NSW was so high. Thanks for the knowledge.

Peter

 

[cimbom]

I didn't even know about this