March 2021 portfolio update

Welcome to my March 2021 portfolio update. 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
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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

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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,