Hi first timer again.
I have been investing in property for about 3yrs and have accumulated a portfolio worth about $1.1 million spread over six properties.
My cash flow is positive 0.5% this is before depreciation is taken into account.
I earn an average salary ie less than $50000 my wife works part time on standard wage.
I stick to 80%LVR’s
I still have a mortgage on my home of about $120000.
In your opinions how am I doing ?I read Robert K’s books and jan sommers etc i try to keep my finance a bit private as you do.
The only people who know are my accountant who i spend longer and longer with around august and my finance guy.
Plese forgive im not trying to gloat i just feel like a mushroom.[
]Looks like an impressive start to me!
Hi there,
Wouldn’t mind that spread… What are you doing to reduce the mortage on your house?
You feel like a mushroom? Sorry did I miss something?
Cheers
Soosh [
]There are no problems, only solutions!
Welcome [
]Just quickly so my understanding is correct, when you say you have a positive cashflow of 0.5%, Im assuming that to be $5,500 a year ($1.1mil x 0.5%) if I’ve got that mixed up just let me know.
As to how you are doing, unfortunately I dont think we could really give you an appropriate answer, and its not because we dont want too [
] but you havent told us what your financial goals actually are.For example, if one of your financial goals is to achieve a net worth of $1.1million then I would say you are doing fabulous, on the other hand if your goal was to be producing $100,000 a year in passive income, I would say you’ve got quite a long way to go.
Goals are extremely important. Investing with goals is like driving a car without a roadmap, or so the rich people say [
] So, perhaps if you shared some of your goals we might be able to offer better advice on how you are doing, but either way you seem to on the right track.Regards,
BrettHello
Well Spooky, there is nothing spooky about you. Good on you, you certainly seem to have caught the right train.
Keep it up.
Cheers
NessieHey Spooky,
Very sage words from Brett. How you are doing is so subjective without a benchmark. Where are you going and where do you want to end up ?? All things considered though you seem to have done quite well if your aim is to amass capital gains based property . Well done.By the way you don’t need us to judge you. My guess is you are your harshest critic (if you are like me). A question for you ……how do you think you have gone ??
Look forward to your reply.
Enjoy
AD [:0)]
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithEdited by – [email protected] on 28/11/2002 11:24:01 PM
Your Questions Answered
Brett
Yes that’s about it but you should remember I do get a tax rebate for depreciation of about $4 to 5000.Sooshie
I kind of have plans to move and lease out my home so I don’t want to pay off the loan too much as I won’t have enough to tax deduct in the future. However I do have an offset acct which has the effect of reducing the interest. It should only be 2 to 3yrs and I will have enough to offset the debt completely. Then I can take the $100,000 or so and purchase my new home whilst still leaving a large mortgage on the IP which would then be tax deductable. Hope I have Explained this clearly.
Ps The mushroom thing is I feel like I’ve been working in the dark. I’ve only just found these forum sites.AD
Well my goals change as I learn as to what is achievable.
My first IP I thought would be the only one for about 2 to 3 yrs and cost about $90,000 now I am purchasing about 2 a yr for around $200,000 each of course capital gains make most of this achievable but who’s to say the current climate will last.
Overall I want to retire early or atleast take a seachange and retire comfortably say $80,000/yr.Thanks for your input.
]
] So, perhaps if you shared some of your goals we might be able to offer better advice on how you are doing, but either way you seem to on the right track.
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