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OK – I think I am getting the idea. But it would seem that at the start, you need to really focus on very cheap properties with good rental return to start to build from.
That being the case, is anyone prepared to mention areas that can be looked at in the current market?
Does anyone know if there is still enough mine life left to think about places like Norseman in WA?
I agree, you can (and should) definitely use the equity as it increases, but remember we are talking about 12 months! I guess I struggle to see how this much capital can be raised in such a short time unless you are well prepared for it.
The only way I can see that this kind of acquisition can take place is if you have significant equity in your own home or access to considerable cash to start with.
In other words, this initiative does not appear to be useful to the ‘average’ person looking at getting into the market – to be honest, I thought that was where it was targeted.
Is this a fair assessment of ‘the $1M property portfolio in 12 months’?
Jo
I am actually talking about managing $1M worth of property, not actually making $1M in a year. If we were able to take on a portfolio of that size, our 10 yr timeframe would be about right. (assuming we could get to $2M of property in 2 yrs)
The question is, that $200K is bloody hard to get! If you have a home you can use – great, but a lot of people starting out in this stuff just don’t have that. We have a great income, but still cannot see how we could get to those kinds of figures that quickly.
Is there something we are missing here?
If someone had $200K to get to the $1M is just a case of selecting the property – that is just about being patient to select the right ones…but how can the ‘average’ person get there?
Or is this $1M challenge only viable if you own your own home or have a spare $200K lying around?
