Welcome to my March 2021 portfolio update. You can check out last month’s portfolio update by clicking here.
The promising movement in the housing market continues during March with many indicators suggesting future price growth in certain areas across the country. It appears owner-occupiers are utilising the numerous government incentives to purchase properties across the country. From an investor’s perspective, this is great for price growth but can make it difficult to purchase well in an increasingly hot market. There appear to be more FOMO (fear of missing out) buyer’s and it can be challenging as an investor to ensure not to be caught up in the hype. In the areas I have been concentrating on, most properties are being listed for 50-100k more than what they were attracting less than six months ago.
I mentioned last month my eagerness to find investment property four (IP4) and fortunately this month I was able to pull the trigger again on another purchase. The purchase ticked most of the boxes and given the market, I believe by the end of the year I will look back at this deal as a bargain. I have been thinking outside the box and building my rapport with agents in order to potentially see deals before they hit the market, this has been quite a lucrative approach and has resulted in me purchasing IP4!
March 2021 portfolio update: Property breakdown
Property one
This property is sitting similar to where it was last month but it is at the stage where I am able to extract equity out of the property to facilitate a future purchase, this will be something I plan on doing in the near future.
Property Two
This property has started to have a lot more appeal towards it as I have now seen more comparable sales purchased after 2021 seeing increased priced growth. In its current state, the property is quite tired and may need a cosmetic renovation in the next few years, however, by adding value to this property I could easily double my return based upon the current market conditions.
Property Three
The renovations to property three are well underway and once completed, I expect to receive a pretty decent yield in contrast to the purchase price. I’m expecting an additional 10k will be needed to get this property into good rentable condition. A small price to pay for the fact that other similar properties are being sold almost 20% higher than what I purchased this IP for!
Property Four
The new property in the portfolio being property four also is looking quite promising. The property is already tenanted to long-term tenants who are probably paying below market value to rent the property. Once the lease is up, I expect an increase in the rent per week and an overall decent yield. The property was purchased at a pretty good price probably about 10% below market value, however, if the market moves like it has been this could prove to be an extremely good deal.
The Numbers
| Property | I | II | III | IV |
| Purchase price | $390k | $250k | $317k | $331k |
| Current value | $460k | $320k | $390k | $360k |
| Loan | $350k | 250k | $290k | $260k |
| Rent | $370 pw | $335 pw | $400 pw | $350 pw |
a
March 2021 portfolio update: Portfolio breakdown
| The Numbers | Change since last month | |
|
Portfolio value |
$1,530,000 |
+ $390,000 |
|
Loan |
$1,150,000 |
+ $314,000 |
|
LVR |
75.1% |
+ 1.8% |
|
Rent |
$1455 pw |
+ $355 pw |
|
Repayments (loans, rates, maintenance, agent fees & insurance). |
– $1533 pw |
– $384 pw |
| Cash-flow | – $4,056 p.a |
– $6,056 |
a
March 2021 portfolio update: Race to $5 Million Portfolio
Month on Month change
| Date | Portfolio ($) | Change (+/-) | notes |
| 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 | Cash savings | |
| 2016 | 25k | Cash savings | |
| 2015 | $50 | The journey begins |
until next month.
Cheers,
