Hi Blaster,
This is a very good question. Jan Sommers in her books outlines a simple and realistic plan of accumulating 10 properties (1 PPOR and 9 IP's) over a period of 20 years. Her break down is something along the lines of 5 years to save a deposit, 5 years to pay off the PPOR and 10 years to accumulate a further 9 IP's. In the plan, cash savings play an important role to reduce debt, or to save up for a deposit on another IP.
On the forum, as someone mentioned (can't remember who, but it was a good point) there is often a sense of urgency to turbo charge the wealth building process. Eg, borrowing using very high LVR's, or to dabble in other things along the way. Sometimes it works; and sometimes it doesn't!
I think it is possible to accumulate 9 IP's within a 10 year period on a moderate and steady income. However, cash savings are also an important factor along the way, as are the yields that the IP's are generating.
Sometimes I think the process of paying down loans is over looked or discounted on the forum, but from what I have read, investors who have bought over many decades have significant cash buffers to ride through rough patches.
Sounds like you are doing well Blaster, with 4 IPs.
Regards Jason.
Thanks Jason.
Or should I say it's not quite as good as it sounds because some are just blocks I've also accumulated and working on now but they'll pay one day and there's also some future blocks and units amongst it to come with divisions later that I don't really count.
Real estates a pretty amazing business isn't it .
Anyway I'd like to get my hands on this latest , always the way I spose .
Cheers
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