What would you do differently if you could start over again in Property?

[ENP]

If you could wind back the clock and start all over, what would you change about the way you invested in property?

What would you keep the same?

It's pouring outside this weekend so thought I'd get an interesting post started.

[halfempty]

Marry better....

[Davo36]

Lol, I laughed at that halfempty!

I would hold everything and basically never sell. I'd be a lot better off.

And of course I wouldn't have ever developed if I'd known in advance all the pitfalls/hassles.

[halfempty]

Lol, I laughed at that halfempty!

I would hold everything and basically never sell. I'd be a lot better off.

And of course I wouldn't have ever developed if I'd known in advance all the pitfalls/hassles.

Thanks Davo....

If can get back and make a post later I will expand on my explanation but at the moment Mrs Empty is very unhappy with my previous answer.

But for the moment, the Question was what would you differently if starting again?

Not what would you do if you had the investors almanac 2020 edition.

Let's face it if we thought we could have gotten a better return over the last few years we would have done it.

OK I've got to go back to the closet under the stairs now.

[buxlo122]

And of course I wouldn't have ever developed if I'd known in advance all the pitfalls/hassles.

What about adding minor dwellings to properties?

[MarkButThis]

If you could wind back the clock and start all over, what would you change about the way you invested in property?

What would you keep the same?

It's pouring outside this weekend so thought I'd get an interesting post started.

I would have leveraged the cr*p out of myself while I was young and free and earning loads of money in London. I bought two houses in NZ while doing this and eventually ended up with a free house as a result of the boom and the capital gain. But with the UK salary I was on, I could've probably sustained six rentals at the one time...

...Now I am back in NZ, working for a half a pittance and have a family to support too...

...Ahhh but retrospect is such a twisted bedfellow.

My mother probably would've expired though - she was the one looking after and cleaning the rentals!!! For a whole decade

I owe them more than I could ever repay...

[Rosco]

Not be greedy, and be careful who I listen too

My first property deal was a place in Rotorua

8 * 1 bedroom units - renting for approx $80 per week
1 * 3 bedroom house renting for $140 per week
Approx rent per week $780 (it was a few years ago so can't remember exact details, but you get the idea)

Everyone was telling be to 'buy right' and get 'a real bargain'.

So the vendor was desperate, I was the only buyer around and we were stuck.

Me at $145k

They were at $150k

So a tiny $5k difference. But I won't budge as I was buying right etc.


In the end another buyer came along at the last second, and picked up a great deal for $150k, and returning around 26%, with opportunity to do up to increase cashflow. Meanwhile I came away with nothing.

Moral of the story? Sometimes you need to look at the bigger picture, and not get stuck in the detail.

This deal is about 10-12 years old, but imagine what it would be worth now, plus the cashflow would have easily paid for it!

Ross

[Rosco]

Starting again now, I would probably look for a real bargain or good deal to start me off.

I have a client who has 99% purchased one of these, and hopefully in a day or two I'll put up the details.

Ross

[essence]

My first property deal was a place in Rotorua

8 * 1 bedroom units - renting for approx $80 per week
1 * 3 bedroom house renting for $140 per week
Approx rent per week $780 (it was a few years ago so can't remember exact details, but you get the idea)

Everyone was telling be to 'buy right' and get 'a real bargain'.

So the vendor was desperate, I was the only buyer around and we were stuck.

Me at $145k

They were at $150k

So a tiny $5k difference. But I won't budge as I was buying right etc.


In the end another buyer came along at the last second, and picked up a great deal for $150k, and returning around 26%, with opportunity to do up to increase cashflow. Meanwhile I came away with nothing.

Moral of the story? Sometimes you need to look at the bigger picture, and not get stuck in the detail.

This deal is about 10-12 years old, but imagine what it would be worth now, plus the cashflow would have easily paid for it!

Ross

Rosco, you weren't the first and won't be the last, to lose out on a deal because of the last $5K-$10K-$50K.

It fascinates me that people (owner/occupiers and/or investors) lose sight of the deal but for the sake of the last few thousands.

What would I do if I started again? Relax. Make my first purchases cashflow +ve (ah, the wisdom of hindsight), borrow more, get outside my comfort zone, be more of a hard-*cough* when it came to tenants (oh, those wonderful, wonderful stories I got told!!) - and do it all much, much faster.

Oh, and did I mention - relax??!!

Life is too short to worry about the small stuff, or what might've been.

[Keithw]

I would have started with IPs much much sooner, instead of waiting for a reason (my daughter going to uni & needing a place to live.)

My ex brother in law started while he was at uni - bought a place & had flatmates.
I didnt want flatmates so stuck with PPOR - rennovating then moving up the property value ladder.
I think he did a much better thing.


If I had understood gearing earlier, instead of believing I couldnt afford to borrow, or had to have cash in order to buy, I could have started a long time ago

[DazRaz]

Start much earlier and avoid fixing for too long. Unfortunately, I fixed some mortgages just before the interest rates took a nosedive...

[Davo36]

What about adding minor dwellings to properties?

God no. Far too much work for far too little money.

Buy existing places and tidy them up a bit, much easier and you make more money.

[kapitibeanman]

I'm far to smart to tell the truth in this forum. It would be too embarrassing.
I will say that I should have been more prepared to stick with my beliefs and suffer a bit of pain at the odd time, even if all it involved was putting in more time researching and less time being lazy.
Also, for the record, I should have had more respect for my wife's intelligence and less confidence in my own. Events usually show she was right.
If that sounds contradictory, it just shows that even with hindsight I can't tell what the hell I did wrong or right. However, I have rather enjoyed the journey.

[cube]

Started earlier.

Stayed in the investment comfort zone (which turns out to be buy and hold) - distraction lane consisted of doing all sorts of things that we were cr*p at, and are still paying for today.

[spaceman]

I would have liked to have been a bit more aggressive.... I think I erred on the side of caution when I started out..... basically this means I would've like to have geared myself more heavily and listened to the doom-sayers less.

Cheers
Spaceman