Damn I like your posts Terryw, I am going to have to print them off before I forget!

I personally have already saved $20k, but my parents are willing to add a further $100k. So with a total of $120k it could be possible to buy 2 IP’s but only if I could service the loan. This would be asking a lot and something I wouldn’t be comfortable with, so….

I could buy one IP ($300k), using only $60k as a deposit, then put the other $60k directly into an offset account, and with a little luck the IP could pay for itself…..hopefully.

Then I could save all of my income into the offset ready for the next IP deposit.

My wages will be increasing steadily for the next 3 years, so as long as my spending remains low, I should have a lot more extra cash.

How does that sound? I buy one IP thats neutral, which then sets me up for a second IP in approximately 12 months….

Thanks Terryw,

I have been keeping a record of all my expenses for the last 18 months, but I haven’t really studied it much to see where I can cut back my spending. I am pretty frugal with my money so any additional cut backs could result in total boredom!!!

Having said that I can’t believe how easy it is to spend money. For example this month, February, I have already spent $500 which is a lot of money when your a first year apprentice.

First of all I want financial stability. I want to be not dependent on my job. To me this means owning properties that return $50k/year. So if I was to have 5 free hold properties that could return $10k each then I would be financially stable. I would like to be in that position when I am 30, (10 year time frame)

From this point I would be aiming for an income purely from property of $200k+/year….

Before reading ummester’s post I thinking exactly the same thing, fearing other peoples greed which has been the case for the last 10 years. I think its pretty ironic to quote Buffet like that!

Thanks for your posts guys. Nice to hear from lots of people.

I currently don’t own any property because I’m still only 19! And I guess I am being very cautious not to enter the market at the peak, however its inevitable that some day I will need to buy a property. So if I buy tomorrow and the Australian property market shits itself, is that really the end of the world. I might own this property for the next 20-25-30 years.

I read on another thread on this forum, someone saying that in 2050 the price of a small car will be something like $400k. This might not be particularly accurate, but it makes the point that the price of living will no doubt continue to rise. Its just that at the moment some things just seem I little off balance.

Hey!

I must say a massive THANKS to all that responded. That was some awesome information, some of which I’ll need to digest for a little while!

Terryw, what you said is exactly the plan I had in my head. I’m actually going to print your post out and stick on my wall!!!!

For the past 18 months I’ve been recording all of my income and expenses, so I can decide where I can cut back and really budget my money.

10 properties! I’d like to think I can have x10 that much!

I’ll post some more specific questions in the future, but for now happy investing