Just curious, I wonder any full time investor / property investor around this form? Willing to share your experience?
Hi
To be a full time property investor – and survive – that is have money to eat and have a house to live in you would need a property portfolio worth over at least $2 million with no debt. As net residential property returns are about 2% this means you would get about $40000 from such a portfolio – hence you probaly need a much bigger debt free portfolio to really be self sufficient. Remember gross rent is reduced by all the costs like rates, insurance,maintanence, property management fees, tax etc. Most gross rent is only about 4 – 5% in city areas.
That is why there won't be two many replying to your query.
I was fortunate enough to retire at 39 and have sufficient rental income and share dividends to last me until i was 65.
After a couple of years you realise that there is more to life that sitting up at the coffee shop in Hasting Street each morning read the Fin Review and walking the beach. You need to keep the mind active and I started my own boutique mortgage broking and financial planning business.
Property in Brisbane and SE Qld has been very good to me although the current prices and reduced serviceability means that it is harder for the average investor to make a living out of buying and selling or holding real estate long time.
Certainly what was achiveable 6-8 years ago may not be the same now but it is like everything in this world in you have the desire, passion and want to work hard you will achieve it.
Richard Taylor | Australia's leading private lender
Just a different POV to WA. Full time PI does not necessarily mean RETIRED. I live comfortably just investing. Yes I do have rentals, but I also do small subdivisions the provide balloon payments that I use to assist in pay ing down other debt with the goal of a few totally positve properties. I decided I didnt need the 300 properties, just a few that were completely paid off. Everyone does things differently, but this works for me.
mickMick
I couldn't agree with you more.
Thankfully i have around 14% LVR on my portfolio and with the next couple of subdivisions or strata title clocks should almost have that paid off.
It is all then just taxable income and the next round of acquisions.
Richard Taylor | Australia's leading private lender
I am also a full time investor. That doesn't mean that I have retired, it just means that my husband and I have been able to quit our full time jobs and concentrate on property. We have a combination of rentals, land, and building developments. I love property so I do most of the work (looking for deals, sorting out finance, bookkeeping etc) and my husband looks after the kids.
Four years after starting our property investing we have managed to get out of the rat race, move to a fabulous farm in the Adelaide Hills, spend most of our time with our little kids so that we can make the most of the short time we have with them before they go to school and generally speaking, have a fantastic lifestyle. We could sell out of everything, put the money in the bank and live reasonably comfortable for the rest of our lives, but we are both young (under 40) and I love wheeling and dealing.
I expect that you will find there are a lot of full time property investors on this forum.
Cheers
K
Thanks all for your wonderful sharing, advises and experiences. I love to invest in properties and would like to get out of the rat race soon. Of course, my husband thinks alike! We both work hard to build our portfolio.
Do keep posting to share if you are full time property investor. Thanks.
Wealth Accumulator wrote:HiTo be a full time property investor – and survive – that is have money to eat and have a house to live in you would need a property portfolio worth over at least $2 million with no debt. As net residential property returns are about 2% this means you would get about $40000 from such a portfolio – hence you probably need a much bigger debt free portfolio to really be self sufficient. Remember gross rent is reduced by all the costs like rates, insurance,maintenance, property management fees, tax etc. Most gross rent is only about 4 – 5% in city areas.
That is why there won't be two many replying to your query.
Living off the the rental repayments is not the only way of accessing the money that you have made from your property investing. If you owned $2million dollars you would then have the option of refinancing or getting a LOC and gaining instant access to your equity without having to sell your properties. Yes you would have to pay interest on the money that you get but when your equity is so big you can simply add that onto your LOC. Some people might not feel comfortable with this kind of strategy but if used correctly it is a great way to enjoy the benefits of your hard work whilst not being forced to sell your properties. The best thing about this strategy is that as house prices continue to rise long term, so does your equity.
Cheers
Banjo SMyth
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