Home – New Forums Starting your journey Instant consulting cash, property, vs getting long term passion/business up.. Reply To: Instant consulting cash, property, vs getting long term passion/business up..

#1032460
YoungNomad
Member
  • Total posts: 116
Up
0
::

Hey Cisco

Very interesting discussion you’ve presented.

I can hopefully offer some insight based purely on how I have run my business and property development portfolio.

In my first 2 years of business, I invested 100% of profit into property acquisition – bought 6 investment properties in the first 2 years.

It was EXTREMELY stressful, and I WOULD NOT recommend it for someone who is even slightly risk adverse. It was a very fine juggling act – I was constantly pleading with creditors to give me 4 more weeks, because I had stamp duty / development costs to pay.

Looking back, I would do it exactly the same way – I now own 9 investment properties – debt is at roughly 2.8m, portfolio value is close to 4m.

I’d dare say I’m the biggest advocate on this forum for buying property – I own a real estate agency, and my focus has always been to acquire 50 investment properties by the time I’m 35 (and I’m definitely on my way!).

The key is adding huge value to your investments. My strategy is now to buy a 3 / 4 bed in appalling on a good sized block (1000m2+) – I renovate the internals to a high spec, and either convert the double garage to a 1 bed unit, or build a new 1 bed unit

Generally my buying costs are around 500k (420k to buy, 20k stamp duty, 60k development costs).

This investment returns roughly 850pw rent – which provides a positive cash flow of approx. 1k per month.

Times this by 50 and you start to see the inherent value.

Hope this helps …. a bit ;)