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Jonathan’s investment tips and plans to invest Vegas-style

Investing ‘Vegas-style’.

While he hasn’t yet invested outside of Melbourne, Jonathan does admit to presently looking at the Las Vegas market, as he believes it was the greatest hit market in the United States recently.

“However it still has a successful industry surrounding and supporting it. Because of that it now has an interest to me,” he explains. “Many areas drop in value, as they no longer have supporting industry – mining for example.

“Even though prices plummeted during the credit crisis the industry still remains, which will ensure the property market’s future security,” he adds.

So while Jonathan may be planning a trip to Las Vegas in the near future, a side trip from his main strategy, in the meantime his goals are firm.

“I plan on doubling the size of the portfolio every five years and striving to invest in the best property.”

He strongly believes the value will be taken care of as long as the location is correct.

“It’s the net income of these properties, and its subsequent growth that has the most value to me.”

And he feels there is no end in property, or a limit to his portfolio.“It’s what gets me up in the morning. It’s not a choice because it’s what drives me. The minute my progress slows I immediately throw myself into something bigger. I believe I’ll never stop working.”

But these days it’s not just his passion for property or his three little bubs waking him up everyday, but his six-day-a-week personal training session, conditioning his physique for the Australian Natural Body Building Championships.

Jonathan explains it’s the consequence of a bet with some friends. “It all started with a bet over who could lose the most weight and tone up as much as possible.”

Jonathan’s development must-dos

  • Positive gearing is the only way to go on a large portfolio – negative gearing is just too risky.
  • Don’t forget cash flow – it’s the most important factor in a growing portfolio and will get you through an economic downturn when equity won’t.
  • Buying in the luxury market gives you both reasonable growth and rental yield.
  • Developing properties of high quality and timeless style means the property value can continue to grow over many years, rather than deteriorate like some other properties on the market.
  • Buy in more affluent suburbs because uncapped high-income suburbs mean higher long-term growth.
  • When developing and selling always first realise the profit through retaining 20 to 30 per cent of units for the personal portfolio.
  • Minimise future body corporate fee expenses by keeping developments low-rise and avoiding pool and elevator installations.
  • Spread the credit over many lenders.

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