Hi all, interesting times.
I am wondering what your vision is of your future … I was reading an interesting old book on the week end on the psychology of creating wealth in different generations of our society and was wondering what your inner beliefs are in your generation, both good and bad.
18 – 28 year olds …..
28 – 38 year olds …..
38 – 48 year olds …..
48 – 58 year olds …..
58 – 68 year olds …..
One of the most important points made in the book was the need to set TARGETS in our lives to aim at or to work towards.
Regards D
Here goes with my crystal balling…
I'm 28 now, wife is 36…
Next ten years I'd like at least 1 property every year (1 in Fiji) with one or 2 paid off completely in that time. I'd like to be in a position whereby my wife can scale back her work commitments should she want to.
I'd like an island in the Bahama's by the time I'm 55.
I've got my first one now and am looking for number 2, so I'm on the way
Now let's see how this holds up in 10 years time
I am 31, fiance 28
Good job, just paid out all loans and can afford comfortable living.
Want to work and not retire, life is the game to me which I greatly enjoy. Enjoyment is my goal.Hi
I'm 35 and my wife is 34 – 3 kids 7 and under.
Our short term goal 12 months is to finish some renovations on our current PPOR (already renovated and sold one to help finance my business start up).
Short term business goal is to access 2 quality clients every week, thereby increasing business income to fund other goals. Doing this by providing quality service to our existing clients and then requesting referrals.
Along the way we are gradually investing in the sharemarket, with use of a margin loan (50/50) LVR via our Family Trust. It would be nice to have more to invest in the current depressed sharemarket but you have to balance lifestyle now (renovations)and later with current financial abilities (funding 3 children etc).
Our long term aim is to reduce reliance on our personal exertion income to the point where we choose whether or not we "work", this is when "work" becomes "play" in my books.
I am 40 my wife is 40 . We had a goal of becoming wealthy through property but that was when I had a high income. Then we had two baby girls (twins). This has meant that I haven't worked full time for 6 years and have no income. So out went the negative gearing and in came the positive gearing. In 12 months the first property will be paid off entirely. Then I will probably get a no doc loan and buy another house and pay it down to a point where it costs nothing to own and then buy the next property and pay it down till it costs me nothing to hold it. I do not really have an end goal due to having my plans stuffed up by employers that don't employ 40 year old university graduates, so I will have to go slower than I had originally planned.The above plan may take longer but as we increase the amount of properties and repeat the process the effect compounds.
First property brings in $10,000 p/a
Second property brings in $10,000 p/a based on $230,000 purchase price
interest cost is approx 23,000 but total rental income is now $20,000 cost is $3,000 a year leaving room to make extra repayments plus more payments if interest rates go down or rent goes up.Get second property cash flow neutral
first property $10,000
second property $10,000 income $10,000 expense costs
third property $10,000 cost $23,000 in interest
total income $20,000 total interest cost $23,000 cost zero, cost $3000. per yearGet third property cash flow neutral
first property $10,000
second property $10,000 income $10,000 expense costs
third property $10,000 income $10,000 expense costs
fourth property $10,000 cost $23,000 in interest
total income $20,000 total interest cost $23,000 cost zero, cost $3000.As capital growth and rental growth increases over time the compounding effect increases and process accelerates.
Hey D, you started this tread but what about U ?
I'm 56 next week and my wife is 54. We started late on this IP journey in 2005 and now have 5 IPs spread over 2 states and the NT, all -CF but well managed with a LVR of 80% and heading south:) We have a LOC buffer of $216,000 and are waiting and watching at this stage. We will possibly buy one more property in the next 12 months which will see us done for our ultimate target of retiring on $100,000 in 6 years from now. This will happen by utilising LOE when the time comes but the strategy used at that time will be governed by current prevailing conditions. One thing is for sure; we will be a lot better off than living on a part pension and whatever we have in super.
Ahhh its a beautiful thing:)Pud
Hello Simple sorry for the delay and hello again, my brother in law has been diagnosed with Myeloma (Bone Cancer) and this has thrown the family into turmoil as u can imagine. He owns 19 motels and lots of other stuff and has been an inspiration and mentor at the highest degree, no he has never done investor seminars he actually detests the people that run them, funny how indifferent people see this haha.
All the money and property in life will not keep us alive forever so embrace each day and enjoy.
As you know I work for Philip Sigglekow as a research specialist and I believe that there is some miscommunication out there.
Firstly there is a lot of talk about dropping interest rates however people fail to understand that the rates will still be above 8.5% which is up from 6.5% of recent times … there for my point is afford ability … factor in a 9% interest rate, harder valuations, tighter lending criteria and you wipe out 50% of the investors.
Secondly 30,000 people per month from Sep/July will be refinancing from fixed home loans and this smells more trouble over the next 6 months IMHO and thats just with ANZ.
Generation X and generation Y have some creative challengers coming up.
What am I doing … We are negotiating on several large sites in Turramurra, North Turamurra, Gordon, Hunters Hill for development into aged care, town houses, and large prestige homes.
I am selling down 3 investment properties to increase equity and cash flow … We do not believe that property is a long term buy and hold strategy, we believe that property like the stock market should be sold and cashed in then reinvested into bigger fish.
In the next 5 years Australia's population will grow by 1.6 million people, now this is interesting with lots of opportunities.
We are also working with a Chinese company who has developed modular housing and we are interested in Mining Towns and plus 55 housing in community titles, actually we are planning 550 at Bathurst with bowling golf and community shops.
So life is busy and hopefully prosperous … take care Simple all my best D
D – most sad to hear about your Brother in Law.
I may sit on the polar opposite side of the housing market to you, putting up with a very mean landlord who keeps lying and trying to break the law with us but, as you have noted, the twists of life outweigh even the most sound investment plan. It is sad to hear of any news such as yours. 1 of my work coleagues recently lost a son and another his wife. Sad news.
I am in the 28-38 bracket, as is my partner. Our plan is to keep saving what cash we can until the market feels fair – we only want 1 house (at any given time) which is more security for the kids and would preffer to spend more of our lives living than investing. We have done a lot of living already – between us we have seen the globe.
Only spanner in our works is the rental problem but I still feel the market is better to wait in (even if we do have to pay more for rent than what is reasonable). Each week I see 10 more properties listed for sale near me and 1 less for rent. But sooner or later the vendors will have to lower their expectations and (sooner) I will be out there putting offers in. I probably wont get takers yet but I am confident that the near future will bring reason back to this market. I believe a large part of the problem with stubborn vendors is what lifestyle they envisiage for themselves with that extra 50-100K they think their property is worth. Worth is an entirely subjective thing, I guess.
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