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Buying Houses Strategy

Discussion in 'Real Estate' started by helloworld1, 6th Aug, 2015.

  1. helloworld1

    helloworld1 Member

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    I went to Mark Rolten (sp?) seminar a while back. It was free, I had no intention of buying whatever he was selling but thought it would be a good starting point.

    One thing I picked up from his seminar was that you should buy at least 1 house every year with the intention of holding the homes for a 10 year period and then selling half to pay off the others...This obviously assumes they all double in price.

    Is this a realistic goal? Has anyone else done this? Cheers
     
  2. Tropo

    Tropo Well-Known Member

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  3. helloworld1

    helloworld1 Member

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    Thanks, but more so asking about the technique not whether he is a scammer or not.
     
  4. Tropo

    Tropo Well-Known Member

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    If you can save for deposit each year (required amount of money say 50K~100K), the technique may be good for you but it is not realistic for most of the people.
    Also double the price every 10 years it's a dream in most cases. You can check statistics on this one.
    Read some books and talk to property investors (I'm not a big fan of IPs).
     
  5. Corey Batt

    Corey Batt Member

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    The timelines may be a bit enthusiastic - but the overall premise is there. A portfolio expansion and consolidation phase is a tried and true method to growing a retirement income stream.

    The consolidation phase doesn't necessarily even have to involve a sell down point - it could end with diversification into other asset classes (shares), a smaller sell down and maintain a low level of debt or retaining all debt and switching to principal and interest (assumption of no non deductible debt) and allowing inflation + repayments to erode the debt down.
     
  6. michaelmaloney

    michaelmaloney New Member

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    I think it does seem feasible but only provided that the market prices do not plunge drastically during that whole 10-year tenure. Else, you might even suffer a huge loss on several of the houses. Another factor to consider is the condition of the house which needs to be maintained regularly especially if you rent it out even for storage purpose alone.