Tell me I am investing wrong.
I have been obtaining units, roughly 1 a year.
I only buy if the price is eg. $200k, and returning $250/w (positive).
Everyone has all these other opinions, buy houses, buy this and buy that. But they all work, so why should I listen to them. Once my loans are paid off I wont have to work, ever again.
But I have 8 units, after 13 years of working. My loan value is around the $600k. The value is more $2.2 mil.
I actually don’t care about my loan or interest bill. The interest bill offsets my taxable income, and all of my properties more than pay for themselves.
Basically I have my income and 8 rental incomes paying off the loan value equivalent of 2-3 properties. They should pay themselves off in 3-4 years.Keep doing something that I am good at? Keep buying units, following my successful format? No houses, no flips, no developments?
Hi Vyaw,
Hehe, why would I tell you that you are investing wrong? Your story reminds me of the Mexican fisherman:-http://www.wanttoknow.info/051230whatmattersinlife
Sure, you could try other stuff if you wanted to, but it seems to me you don’t need to, and you could just keep doing what you are good at until you choose not to. Well done.
BennyHi Vyaw2003,
I agree with Benny, if you are happy with what you have, then just keep doing what you do.
Quick question to Benny, please – before I continue with the ‘thing’ about the Mexican fisherman which I think relevant to us all.
Benny, are you the Moderator of this website? I have a few simple queries re. the 5 yellow stars, etc. If you are, I’ll pm you?Back to the Mexican and American guys.
In life we, highly social creatures, are driven by how others perceive us and this perception is based on how we measure up against each other. Unfortunately the most universally recognised measure is money because it implies how hard you have worked, strived to get there. With money comes security (food, accommodation, illness, etc) and respect from your fellow humans and, more importantly, from yourself. And as much as we’d like to think that money doesn’t buy love, it definitely does. Try not feeding / giving shelter to your loved ones. Even the wealthy need to be ‘working’ to gain respect, to prove themselves.This is what the American guy alludes to. Sure, the Mexican guy can just do nothing, but he does not have security when his loved ones are ill, his children would still be fishermen because he cannot give them first class education, etc.
Having said that, it is obviously up to the Mexican guy how he wants to live his life. If he doesn’t want security, self respect, respect from his loved ones, respect from people around him, better future for his children – then he can stay the way he is. For those of us who do want these things and work for them, the reward is a quiet life with friends (like the Mexican has) plus all the trappings money can buy.
To anwer Vyaw’s question – you are the only one who can answer it. But your question seems to indicate you want to do / achieve more than what you have now. Just hesitant because you know the difficulties ahead.
Just my 2 cents
Cattleya
(Here to learn the ropes of property investing. Not selling anything, though also not trying to prevent professionals on here to sell their services. Trying to be impartial, but always happy to discuss further.)Cattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
Well done on finding a strategy that you’re good at and it sounds like it’s working for you.
To answer your question – if you’re happy with how your strategy is working for you and it’s taking you towards your goals in the time frame you’re happy with I wouldn’t change a thing.
If you want to make some chunks of money to pay down the debt more quickly then you might need to do some of the other things you mention. Do you have the knowledge and time (or people in your team) to use other strategies as successfully as the unit strategy?
Sounds like what you are doing is working fine. you should be able to ‘retire’ very soon, if not now.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
well that is kind of a hurdle, a house costs $300k minimum, plus $20k renovation, just not the kind of money i have had spare, when my loans get down to $100k i might consider it i guess.
Hi vyaw2003 great stuff. Tongue in cheek there area number of things you are doing wrong:
1. Your investments are making money. How can you goto adinner partyinSydney and bragabout your negativegearing. I was in thesame situatioafew yearsback. a rundown property – spruced up tenanted 25% return on purchase price. Everybodysays I’m crazy who would ownthat kind of property? I justsmile and agree, after all I don’t want competition.
2. You arerepaying loans. Take an example from Bondy and Skasey, just keep borrowing and assume people will keep lending even when the bottomfalls out of the market.
3. You can sleep at night, your blood pressuredoesn’t go up if you have a couple ofvacancies
4.You have aplanIf you have any armchair critics justtell them youwilljust keepon doing what youhave been doing as you preferyour method of doing even if itis imperfect totheir method of not doing
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