November 2021 portfolio update

Hello and welcome to my November 2021 portfolio update. If you want to check out my portfolio update from last month click here.

Portfolio update

November has been a lot quieter in comparison to the past few months. Property 6 has settled and is currently being advertised for rent. Stronger sales data is coming to light for numerous properties so higher valuations have been seen for a few of the properties.

Market update 

The sentiment is the property market has changed quite significantly in the past month. The mainstream media have been overhyping rises in interest rates and this has dampened the perspective of many prospective buyers. We have seen over the past 6 months that property prices have gradually been declining in the amount of growth seen per month. This may suggest that the steam is coming out of the market and we may be moving closer towards a calmer market.

Over the past month, strong price growth has still been recorded. Numerous banks and data analytic companies have been giving their predictions on property prices for 2022-23. Given each metro market is in different stages of its cycle it means that property prices predictions are different for many metro cities. Moreover, there is uncertainty in the market with the unknown of what the government will do moving forward with the cash rate. Changes to the cash rate will likely suppress the market while leaving it untouched would allow further price growth across the country. How this plays out is anyone’s guess but it is likely buyers will need to adapt to changing market conditions moving forward.


November 2021 portfolio update: Property breakdown 

This month’s more sales data has come to light that gives greater insight into the valuations of each property. Using this data, we can see price growth for some properties which in turn has increased the value of the overall portfolio.

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

$400 pw (expected

Property one- Strathpine, Qld. 

Property prices in this market have begun to be stagnant. We are no longer seeing price growth as we did in the first half of the year. This is expected given the drastic movement of prices over the past 12 months. We will see how this continues to play out over the next few months.

Property Two- Woodridge, Qld. 

Again like last month there are strong sale prices being recorded in this suburb. At one stage it appeared extremely stagnant but over the past few months, we have seen significant sale prices. Some prices have been touching 500k, these have been renovated properties but this is a good sign for the suburb.

Property Three- Bethania, Qld. 

There isn’t as much sale data to refer to when looking at this property. Using comparable sales from surrounding suburbs we can get an idea of where this property might sit. A small increment in price growth was recorded this month but otherwise, it has been relatively quiet for a few months.

Property Four- Loganholme, Qld. 

Over the past month, there have been several properties sold similar to this one. They have been selling around 440k while slightly newer properties with an additional bathroom have gone for closer to 500k. This is great news for this property as it continues to rise.

Property Five- Christie Downs, SA.

Similar to property 3 this property sits in a smaller suburb adjacent to quite a larger suburb. Therefore, it is harder to find more data of past sales for this suburb without using past sales from surrounding suburbs. The property next door to this one sold for 425k only a month or so after this was purchased. It is in better condition but is a smaller block that is a slightly odd block shape. Comparables from adjacent suburbs suggest similar properties have been selling from 400-500k depending on the condition of the property.

Property Six- Parafield Gardens, SA.

Property six has settled and is currently being advertised for rent. It will likely rent for around $400 per week. In a hot market, it can be difficult to pick up a great deal at an auction. I believe the 418k purchase price will prove to be a steal over the coming months. Similar properties are being sold for 450k and the demand in this market is still extremely strong.

 


November 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 + $50,000

Loan

$1,970,000 + $0

LVR

72.4%

-1.4%

Rent (per week) $1935

+ 0

Repayments (per week)

(loans, rates, maintenance, agent fees & insurance).

$1660

+ $0

Cash-flow (p.a) +$6,250

+ $0


November 2021 portfolio update: Race to $5 Million Portfolio

This month I have hit the 54.4% mark of my goal. With future growth and purchases, it will be interesting to see where this number ends up by the end soon!

Portfolio growth

Month on Month change J
Date Portfolio ($) Change (+/-) notes
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

Until next month. July 2021 portfolio update

Cheers,

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