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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 Finance Strategist

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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.