April 2001 I settled IP #1. Bought PPOR only months earlier. 2 days before New Year, 2001.
Perth market was moving quickly and I was learning all I could. Reading heaps of books and chomping at the bit. Realised I could buy again. Settled that in July 2001. Bought two more in 2002. A few more in the following years. Perth prices going ballistic. Over 30% per annum for a while. Even when the media was saying the boom must have been finished, prices went up 36% the next year! (And I hadn't stopped.)
Following the basic strategy of re-valuing and buying more property there was a million equity after 3 years. (And the older model Ferrari was bought then, for those who remember.) Another million after 4 years. A third million after 5 years - 2006. Growth has slowed since then and I am in a consolidation phase. (And pursuing other interests too. This month I go to Europe for a holiday.) Owe lots of money but the larger portfolio value means it is a simple matter of time before there is a good jump in equity. (And latest REIWA figures show good growth still in suburbs I've invested in.)
Have large buffer of borrowed money (that is spare or unused loans). So sleep well at night and although could buy a few more houses anytime, prefer to keep the big buffer. I can go and lie on the beach for a 5 years and it will all pay for itself the whole time if I choose to - I don't use the equity for this though, I prefer to service the loans. A serious investor might tell me I have wasted equity but I'm very happy with position.
(In my ignorance, granted.)
Five million equity in 10 years from starting looks easy from here.
Learn heaps and go for it. I like that comment about the best investment is in yourself.
I haven't done any renovations or developments. Nothing off the plan. Just average houses in average suburbs - except with better than average growth. Property managers look after the houses. I just manage the cashflow. I used to be on an average salary, now I'm a different person and a well paid consultant/contractor.
Best wishes to all.
Perth market was moving quickly and I was learning all I could. Reading heaps of books and chomping at the bit. Realised I could buy again. Settled that in July 2001. Bought two more in 2002. A few more in the following years. Perth prices going ballistic. Over 30% per annum for a while. Even when the media was saying the boom must have been finished, prices went up 36% the next year! (And I hadn't stopped.)
Following the basic strategy of re-valuing and buying more property there was a million equity after 3 years. (And the older model Ferrari was bought then, for those who remember.) Another million after 4 years. A third million after 5 years - 2006. Growth has slowed since then and I am in a consolidation phase. (And pursuing other interests too. This month I go to Europe for a holiday.) Owe lots of money but the larger portfolio value means it is a simple matter of time before there is a good jump in equity. (And latest REIWA figures show good growth still in suburbs I've invested in.)
Have large buffer of borrowed money (that is spare or unused loans). So sleep well at night and although could buy a few more houses anytime, prefer to keep the big buffer. I can go and lie on the beach for a 5 years and it will all pay for itself the whole time if I choose to - I don't use the equity for this though, I prefer to service the loans. A serious investor might tell me I have wasted equity but I'm very happy with position.
(In my ignorance, granted.)Five million equity in 10 years from starting looks easy from here.
Learn heaps and go for it. I like that comment about the best investment is in yourself.
I haven't done any renovations or developments. Nothing off the plan. Just average houses in average suburbs - except with better than average growth. Property managers look after the houses. I just manage the cashflow. I used to be on an average salary, now I'm a different person and a well paid consultant/contractor.
Best wishes to all.
