Hello and welcome to my December 2021 portfolio update. If you want to check out my portfolio update from last month click here.
Portfolio update
As the year comes to a close it is extremely interesting to look back on the year we have had and everything that has taken place. This year the portfolio took a drastic change for the better and accelerated towards the larger goal of a $5 million portfolio. It is exciting to see what will take place next year as the portfolio is looking primed for growth!
Market update
2021 will go down as a historic year for many reasons including what took place within the property market. Nearly every larger market across the country saw 20% plus capital growth over the past 12 months, as the whole market soared. As we come closer to the end of the year we have started to see a change in the front runner across the country. Throughout this year Sydney had moved in front of most other markets despite already being extremely expensive. We can now see in the rolling month change that Brisbane, Adelaide, Canberra are all still showing significant signs of growth. The movement of the market will largely be dictated by whether the government chooses to intervene as inflation continues to grow. However, it is likely we will still see strong price growth over the next 12 months in smaller metro markets as being indicated by recent monthly changes.
December 2021 portfolio update: Property breakdown
This month the portfolio is still relatively similar to where it was last month, however, there are numerous signs to suggest each of these properties is primed for growth in the short term.
The Numbers
| Strathpine, Qld. | Woodridge, Qld. | Bethania, Qld. | Loganholme, Qld. | Christie Downs, SA. | Parafield Gardens, SA | |
|
Purchase price |
$390k | $250k | $317k | $331k | $415k | $418k |
|
Current value |
$580k | $400k | $430k | .$440k | ,$420k | a$450k |
| Loan | $395k | $255k | $295k | $300k | $365k |
$370k |
| Rent | $410 pw | $335 pw | $400 pw | $400 pw | $390 pw |
$380 pw |
Property one- Strathpine, Qld.
Property prices in this market have started to push towards the mid 600’s for renovated properties! I am still waiting for more data to come through to determine the true valuation of this property. However, it appears I will continue to be playing catch up over the next year as the market is so hot.
Property Two- Woodridge, Qld.
Despite being in a lower socio-economic area, this property has soared in the last 6 months. To put things into perspective, properties within this area were being sold in the 200’s at the start of the pandemic. Now renovated properties are getting close to the 500k mark. Anyone who bought well could have doubled their money in less than 2 years.
Property Three- Bethania, Qld.
Having lower sales data makes it harder to determine the true valuation of this property. However, similar renovated properties are being sold around the $500k mark. I suspect this property is going to have a strong 2022 as prices continue to fly.
Property Four- Loganholme, Qld.
Again like property #3, similar renovated properties are being sold around the $500k mark, I would be confident in seeing this property surpass this mark at some stage in 2022.
Property Five- Christie Downs, SA.
The property next door sold for 425k last month and numerous other similar properties are being sold around the mid 400’s. I see a strong 2022 and suspect we will pass the 500k mark here too.
Property Six- Parafield Gardens, SA.
This market is looking extremely promising as numerous comparables are already pushing the $500k mark. Given the time of the year, it was harder to find a tenant for this property but I was fortunate to rent the property before Christmas for $380 per week. This is likely lower than would have been achieved throughout the rest of the year but it is great to see it is now tenanted.
December 2021 portfolio update: Portfolio breakdown
Property prices continue to move upwards this month as the portfolio continues the theme we have seen this year.
Breaking down the numbers
For the breakdown of this month’s numbers below, I have not added the IP6 and the income/expenses as the property is yet to settle.
|
The Numbers |
Change since last month | |
|
Portfolio value |
$2,720,000 | + $0 |
|
Loan |
$1,970,000 | + $0 |
|
LVR |
72.4% |
0% |
| Rent (per week) | $2,315 |
+ 380 |
| Repayments (per week)
(loans, rates, maintenance, agent fees & insurance). |
$2,065 |
+ $405 |
| Cash-flow (p.a) | +$12,925 |
+ $6,675 |
December 2021 portfolio update: Race to $5 Million Portfolio
We are sitting at the 54.4% mark of my goal. With future growth and purchases, it has been a phenomenal year in 2021 and I am confident 2022 will bring just as many surprises.
Portfolio growth
Month on Month change
| Date | Portfolio ($) | Change (+/-) | notes |
| December 2021 | 2.72m | +0 | |
| November 2021 | 2.72m | +50k | |
| October 2021 | 2.67m | +515k | IP6 bought |
| September 2021 | 2.155m | +455k | IP5 bought |
| August 2021 | 1.7m | +10k | |
| July 2021 | 1.69m | +85k | |
| June 2021 | 1.605m | +30k | |
| May 2021 | 1.575m | +45k | |
| April 2021 | 1.53m | +0 | |
| March 2021 | 1.53m | +390k | IP4 bought |
| February 2021 | 1.14m | +35k | |
| January 2021 | 1.105m | +370k | IP3 bought |
| 2020 | 740k | +320k | IP2 bought |
| 2019 | 420k | +30k | |
| 2018 | 390k | IP1 bought | |
| 2017 | 50k | ||
| 2016 | 25k | ||
| 2015 | $50 | The journey begins |
J
Until next year. July 2021 portfolio update
Cheers,
