So here I am, at the end of my first four years of property investing, and my portfolio has now reached the $15 million mark. I’ve achieved the goals I set for myself and it’s now time to set some new ones.
If I sat still, in eight years time my $15 million portfolio will be worth $30 million, and eight years after that it will be worth $60 million, simply because the value of property in Auckland doubles every eight years. (In other areas, however, it can take 10 years, but as most of my properties are in Auckland, I have used this figure.)
Given this scenario, I don’t have to do any more active property investing if I don’t want to. However, my goal is to build up my portfolio to $25 million. Not always by doing new deals, but by also increasing the value of the properties I already own. To achieve this, I will need to work with my property manager to identify which properties would experience substantial increases in yield if I renovated them now. And because the market is heading into a slow period, I will delay renovating those properties that can wait for up to 12 months before having work done because by doing so I’ll be able to get it done for less. Either way, i.e. renovating now or later, building cashflow into my portfolio by adding value will increase the equity in my portfolio.
Naturally, I will still do a deal when the right one comes up, but I won’t be hunting them down at the cracking pace I have used up until now; I’ll work in a more relaxed fashion. hese days of course I have other interests, particularly my business PropertyTutors Ltd, which I set up to teach others the strategies I have learned so they can achieve the same property investment nz success.
As those who have been through the programme can testify, I am passionate about teaching what I know; not only do I provide coaching and courses through PropertyTutors Ltd but I also spend a whole day each week in the marketplace with some of the participants, giving them hands on practical guidance. My own success has been wonderful, but to be part of helping others achieve theirs is very special indeed.
Then there’s all that golfing and fishing to be done……
The above post is based on the book “The 15 Million Dollar Man” by Sean Wood, to read more click Property Investment and download 2 free chapters.
|For further reading on Property Investment NZ, click on the articles below:
Setting Goals for Financial Independence – click here
Tips for Becoming a Property Expert – click here
Buying Rules for Property Investment – click here
5 Tips to Add Value through Renovation – click here