What events would need to happen for you to consider reducing your portfolios?

[thepuzzle.xyz]

I have been overseas for 15 years and heading back to NZ in 2017. Reading this forum reminds me of playing monopoly at my family bach at Mangawhai in the 90's mixed in with pyramid schemes that were going on at the time. Reading people by 10 or 20 homes over 12 months, just can't be healthy for ever/everyone. As long as prices keep going up, the "haves" keep getting more equity to buy more houses and thus fueling the fire. In theory, I guess it can keep going up for sometime with this situation. Until the "haves" decide to get out.

What events would it take for you to consider reducing your portfolios? How many properties do you own?

[WINZ]

I have been overseas for 15 years and heading back to NZ in 2017. Reading this forum reminds me of playing monopoly at my family bach at Mangawhai in the 90's mixed in with pyramid schemes that were going on at the time. Reading people by 10 or 20 homes over 12 months, just can't be healthy for ever/everyone. As long as prices keep going up, the "haves" keep getting more equity to buy more houses and thus fueling the fire. In theory, I guess it can keep going up for sometime with this situation. Until the "haves" decide to get out.

What events would it take for you to consider reducing your portfolios? How many properties do you own?

Well I think we're at peak debt so a large percentage of the population is basically screwed.

[Don't believe the Hype]

Well I think we're at peak debt so a large percentage of the population is basically screwed.

winz - just an opinion? Or some data/info to back that up?

[Bobsyouruncle]

Only an inability to find tenants which would make investing impossible. So the only way I could see that is massive migration out of New Zealand I guess.

[WINZ]

winz - just an opinion? Or some data/info to back that up?

Site won't let me post links? Is it because my post-count is too low?

[Nick G]

I own large student flat properties, hardly keeping people off the property ladder.

[drelly]

I'm planning to sell half my properties this summer. Mainly because I want to improve the quality of what I hold.

[Keys]

Divorce, health, age. Three things immediately spring to mind which would cause me to re evaluate my holdings.

How many properties? As someone once said to me. More than one. Less than 100.

[andyp2010]

More freedom. I reckon if I had just over $1-1.5m left over after selling everything, I'd quite happily pop it in index funds and travel forever. Few years short of that though.

There is this strange obsession amongst property investors to play 'property top trumps' as I've come to coin it. when the first question is 'I've got this many, how many do you have?' and the 'mine returns 8%, what's your return?' type crowd that litter the PIA meetings. I think these people are either bad at small talk or a bit insecure.
It's played out in the mags every month exactly how you describe, '10 properties in a year, 120 properties in 10 years' that sort of thing. I don't think it's mentally healthy to constantly be comparing ourselves whether you be higher or lower. It's not about how many or how much it's about the overall freedom, happiness and satisfaction that it can bring you and happiness doesn't have a number, you can't compare happiness levels.

[flyernzl]

Set a goal on how you want to live.
Accumulate enough property to make that possible.
Then stop.

Too many people redouble their efforts once they have reached their goal. Madness.

Why would I sell?
Maybe I'd sell one to scratch my itch for a Ferrari / Sea Ray / Cirrus Design / other expensive toy.

[Courham]

I've just downsized selling a property to reduce my debt levels and am channelling all I can into reducing my mortgages before I (semi) retire at the end of the year. With interest rates this low its a great time to reduce debt not increase it as far as I'm concerned- my brother has done the same in Wellington.

There is an old adage in property: speed kills. Here is a good example of what happens when it gets messy: https://www.youtube.com/watch?v=j_ktN_h7-J4
Of course the the "investors" blame the banks for lending the money not their own greed.

Craig

[Nick G]

Did he get a good price on that place?

i am selling 3 houses this year! Good citizen.

[Courham]

Did he get a good price on that place?

i am selling 3 houses this year! Good citizen.

Hi Nick,

Yes, $841k which he was very happy with.

Craig

[Beano]

I've just downsized selling a proper?reduce my debt levels and am channelling all I can into reducing my mortgages before I (semi) retire at the end of the year. With interest rates this low its a great time to reduce debt not increase it as far as I'm concerned- my brother has done the same in Wellington.

There is an old adage in property: speed kills. Here is a good example of what happens when it gets messy: https://www.youtube.com/watch?v=j_ktN_h7-J4
Of course the the "investors" blame the banks for lending the money not their own greed.

Craig

Did the property have a lower net yield than the loan interest rate you repaid ?

[Courham]

Did the property have a lower net yield than the loan interest rate you repaid ?

Its net yield was about the same as the interest rate. The property was bought as my retirement home rather than as a long term rental so wasn’t too worried about yield when I bought it as I could cover it. However, when plans changed and decided to renovate my old bach as my retirement home instead it didn’t stack up as a long term rental for me as I prefer a much higher yield- so it went.

Craig