Our Property Portfolio
Below you'll find an overview of our current portfolio as of mid 2009. The portfolio has been heavily slanted towards new or almost new properties because as overseas investors we had to comply with FIRB regulations until we received our residency in April 2009.
The first graph on the right shows how we have increased our portfolio in terms of number of properties over the years. The solid line represents what we have achieved to date and the dashed line is a forecast which I enter into our financial modeling (a quite extensive set of interlinking spreadsheets).
You will notice that the number of properties is not shown as increasing beyond the year 2011. The thought here is that we let the portfolio grow and the LVR reduce to a target level of around 50% in 2018. And after that we'll see how the market has played out and possibly use our equity to further increase the portfolio, or not.
The second graph on the right shows the value of our portfolio value, again the solid line is what we have achieved to date and the dashed line is a forecast from one of my spreadsheets based on the number of properties and certain assumptions around growth etc.
Please understand that these graphs are only the current thinking and I am continuously revising and improving our strategy based on what I learn and see in the market.
With the receipt of our permanent residency status as of early 2009 we have revised our strategy. From here on the extension of our portfolio will be with existing property rather than (near) new. And we'll focus on property where we can add value, achieve positive cashflow especially in the current low interest rate environment and have good prospects for longer term capital appreciation. I expect that we will return to the Brisbane or wider SE QLD area to source these properties. To achieve the positive cashflow I am thinking of multi-occupancy dwellings and/or blocks of units.
In addition to the property portfolio in Australia we have invested in some land just outside of Bucharest, the capital of Romania in a JV setup and managed by one of my brothers - we are just shareholders. With the global credit crisis having a major impact in Eastern Europe the growth will have slowed right down, but longer term it will prove to be a very sound investment. Time will be on our side and luckily we have still have enough.
In addition to the property portfolio in Australia we have invested in some land just outside of Bucharest, the capital of Romania in a JV setup and managed by one of my brothers - we are just shareholders. With the global credit crisis having a major impact in Eastern Europe the growth will have slowed right down, but longer term it will prove to be a very sound investment. Time will be on our side and luckily we have still have enough.
Investment Property 1
2 bedroom, 2 bathroom unit with single car park in Fortitude Valley, Brisbane, QLD
Purchased in August 2004, this unit is located in the Emporium Complex in Fortitude Valley. This was the developers last unit and the asking price was $375,000, but our offer of $330,000 was accepted.
Our rent has increased from $320 p/w in August 2004 to $450 p/w as of today. Value has increased by some 35%.
Initially we did not use the on-site property manager as during our pre-purchase inspection they had not given us much confidence. The off-site property manager we opted for was not much better and after about a year we switched to the newly appointed on-site property manager which has provided an excellent service.
Our rent has increased from $320 p/w in August 2004 to $450 p/w as of today. Value has increased by some 35%.
Initially we did not use the on-site property manager as during our pre-purchase inspection they had not given us much confidence. The off-site property manager we opted for was not much better and after about a year we switched to the newly appointed on-site property manager which has provided an excellent service.
Investment Property 3
2 bedroom, 2 bathroom unit with single car park in Clifton Beach, Cairns Northern Beaches, QLD
Purchased off-the-plan in September 2007 for $292,000 this unit is in the Clifton Views development, just 400m from the beach. The same beach as the popular and upmarket Palms Beach holiday area with all its hotels, restaurants and bars.
The property will settle end August 2009.
The property will settle end August 2009.
Investment Property 2
2 bedroom, 2 bathroom unit with 2 car parks in Bowen Hills, Brisbane, QLD
Purchased in September 2005, this unit is located in the The Mews in Bowen Hills just across the street from the Royal Brisbane Hospital. Again, this unit was one of the developpers last stock and we bought the unit for $328,500 without much luck in getting the price down. However, the unit did include a second car park which we rent out separately to staff of the hospital for $40-$50 p/w.
The total rent for the unit and the 2nd car park comes to $445 p/w. A good growth from the original rent of $330 p/w in September 2005.
We use the on-site property managers and have not many issues with the unit. Capital growth has been approximately 35%.
The total rent for the unit and the 2nd car park comes to $445 p/w. A good growth from the original rent of $330 p/w in September 2005.
We use the on-site property managers and have not many issues with the unit. Capital growth has been approximately 35%.
Investment Property 4
2 bedroom, 2 bathroom unit with single car park in Clifton Beach, Cairns Northern Beaches, QLD
Purchased off-the-plan in September 2007 for $292,000 this unit is in the Clifton Views development, just 400m from the beach. The same beach as the popular and upmarket Palms Beach holiday area with all its hotels, restaurants and bars.
The property will settle end August 2009.
The property will settle end August 2009.
Investment Property 6
2 bedroom, 2 bathroom unit with single car park in Townsville, QLD
Description to follow
Investment Property 5
4 bedroom, 2 bathroom house with double garage on 650m2 in Kelso, Townsville
Purchased in August 2008 for $395,000 this brand new 4 bedroom house on 650m2 is located in the Rosewood development in Kelso on the outskirts of Townsville.
Currently renting out at $360 p/w which is slightly below market.
Currently renting out at $360 p/w which is slightly below market.
Investment Property 7
2 bedroom, 2 bathroom unit with single car park in Townsville, QLD
Description to follow
Investment Property 9
2 bedroom, 2 bathroom unit with single car park in Townsville, QLD
Description to follow
Investment Property 8
4 bedroom, 2 bathroom house with double garage on 600m2 in Gracemere, Rockhampton
Description to follow
Investment Property 10
2 bedroom, 2 bathroom unit with single car park in Townsville, QLD
Description to follow