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Discussion in 'Introductions' started by Harris, 29th Jul, 2007.

  1. Harris

    Harris New Member

    Joined:
    29th Jul, 2007
    Posts:
    2
    Location:
    Melbourne
    Hi everyone,

    Been a somersoftian for a while.. thought I would register here and check out some of the articles/posts relevant to my situation.

    Some of the artciles I browsed through here seem to have excellent content..!


    I am 34, from Melbourne and a buy and hold investor. Started my investing journey through buying in Kew and Mont Albert (VIC) in 2002. Since then I have digressed into Rockhampton, Cairns, Harvey Bay and lately been quite active in Frankston/ Frankston Nth and South.

    Also started building a share portfolio without any gearing so far and plan to learn more to digress into share side of things more actively.

    Have some development blocks that I intend build on in the next 2 years, however keen to find out ways to be able to keep all the finished units without selling.

    Have a massive out of pocket expenditure every month with my negatively geared portfolio (touching $10k/ mth) that I am currently financing through my income, however a key area that I want to address soon and to find out strategies from fellow forumites to mitigate/ reduce that exposure.

    Look forward to being in good company here..!

    Cheers,

    Harris
     
  2. Liverpool St

    Liverpool St Well-Known Member

    Joined:
    21st May, 2007
    Posts:
    96
    Location:
    Sydney
    Navra fund

    You're going pretty good for a 34 year old. Well done. Maybe look at investing in the Navra income fund with margin loan to offset the 10K per month neg gearing on the properties...

    Good luck
     
  3. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Harris and welcome :)

    No doubt some of those dvpt blocks you mention are restricting your cashflow? I would imagine your strategy is to develop them soon with the aim of keeping the finished product?

    Looking forward to hearing your stories- you must have quite a few, being such a diversified investor at least in property. What was the impetus for selecting those particular suburbs/towns?
     
  4. Harris

    Harris New Member

    Joined:
    29th Jul, 2007
    Posts:
    2
    Location:
    Melbourne

    Hi Jacque,
    The development blocks are giving me just under 3% yield on-average and are the most expensive by value and by serviceability out of my portfolio. I have just started the process of getting the DA organised and would look at building in the next 18 months or so for the first couple of developments.

    The challenge I see is getting the right finance which would allow me to keep all the units on all blocks.

    First 2 IP's in Kew and Mont Albert were purchased, because I bought into the myth that inner blue chip suburbs are the safest bet when it comes to good cap growth.. however those prop have given me the least growth out of my entire portfolio in the last 5 years !

    Digressed into Rocky off the back of the discussions we were having at somersoft in early 2003 and the high rental yield. Had about 250% increase in value there... same with Cairns with high yielding prop.. and increase of about 220% in 4 years.

    Chose Hervey Bay after doing some research on the fastest growing councils in S E Qld growth corridor and coupled with Residex' national future CG regional suburb reports (has Eli waters/ hervey bay in top 10), along with huge infrastructure growth and net increase in population with majority of professionals with high income settling in the area. A lot of significant devleopments all around the esplanade and new hospitals/ shopping centres being built to cope with increased demand.

    Frankston has been a totally different kettle of fish. The market has started kicking as of Feb this year and off the back of my research comparing Frankston with almost all growth corridors nationally, it seems to have the highest sales activity than any other (non-auction dominated) suburb in Aus. For the prop I have picked last year and this year, I am already up around 25%. Being bayside suburb with low entry points and rental yields in excess of 5%, Frankston marina in the pipeline, upgrading of frank pier, East link reducing commute times drastically and massive number of new development projects along Seaford, Frank & Frank Sth, and with the cleanest beaches in Victoria, I was convinced that it was simply a matter of time before it kick starts seriously.

    so there it is :)

    Harris