$5million net equity in 5 years

[Bon]

I am not so sure you can put a time frame on achieving xx amount of wealth, especially such a significant amount.

I have my goals in terms of how much equity I would like to have, but no set time frame... in order to try and speed it up, I am working as much and as often as possible between 2 jobs and possibly a third soon, to increase my DSR and save ASAP for another deposit instead of waiting for my LVR to go down as the property goes up in value.

The way I see it, the quicker I can hold and service multiple properties, the greater the effect of compounding will be as the compounding effect really starts to kick in exponentially when you hold multiple properties. Most people would hold only one property, and then only acquire more when the first has gone up in value significantly - e.g. my parents for example hold 1 IP which they've held for over 3 years... they could easily afford a second now with 2 of 3 kids out of home, but they don't look like doing it any time soon.

Equity should increase exponentially over the years, so holding as much as you can ASAP is the key IMO... along with time in the market.

 

[Pete]

Reallly?

you could buy any mining company over the last 5 years and you would have made a killing.

Then why do I know so many people who have bought mining company shares and not make a killing?

 

[Pete]

I am not so sure you can put a time frame on achieving xx amount of wealth, especially such a significant amount.

I have my goals in terms of how much equity I would like to have, but no set time frame... in order to try and speed it up, I am working as much and as often as possible between 2 jobs and possibly a third soon, to increase my DSR and save ASAP for another deposit instead of waiting for my LVR to go down as the property goes up in value.

The way I see it, the quicker I can hold and service multiple properties, the greater the effect of compounding will be as the compounding effect really starts to kick in exponentially when you hold multiple properties. Most people would hold only one property, and then only acquire more when the first has gone up in value significantly - e.g. my parents for example hold 1 IP which they've held for over 3 years... they could easily afford a second now with 2 of 3 kids out of home, but they don't look like doing it any time soon.

Equity should increase exponentially over the years, so holding as much as you can ASAP is the key IMO... along with time in the market.

Sounds like you're on the right path, Bon. Buy good places and keep going!

Regards,

 

[weg]

crc_error, I'm a little confused after reading your previous posts.

http://www.somersoft.com/forums/showthread.php?p=392583#post392583

and

http://www.somersoft.com/forums/showthread.php?p=392583#post392583

 

[weg]

Oops

Sorry, but couldn't get that second link to work. Just scroll down.

 

[Perp]

I'm assuming crc_error was joking; he's highlighting how easy it would be to make a bunch of money with the benefit of hindsight.

 

[coastymike]

Agreed. I thought crc_error was just saying this 'tongue-in-cheek'. Either that or he hadn't take his Zyprexa.

The reality is yes you could have purchased Fortescue at 0.50c in 2000 and be worth many millions today. However most people when they made 100% profit would have gone 'oh **** better get out while I have made money'. Human psychology would prevent most people from holding out when they reached the $1m mark let alone the $10m mark.

Anyway I never thought crc had the stock but was just providing an example.

 

[RumpledElf]

So would you stil buy in Whyalla? The rents seem to be very decent, commensurate for a regional I suppose. But theres still a few properties for sale on reasonable prices hence its not like a Karratha where you'd be lucky to be able to hire a tin shed for less than $500 a week.

Not as good as a few years ago, but there's still lots of room to move up, there's heaps of new mining Stuff going on there. I went looking at prices there recently because my parents were pointing at a house across from theirs that was for sale. There's heaps of places in Whyalla in the $150-200k range (that were $40k each in 2001) and you actually do get half-decent rents for that much so it's still well worth it, much like Elizabeth about 2 years ago. My grand plan involves starting a wee bit smaller than that though and working up, so personally, no I wouldn't buy there, I can't afford it, but if I could I would. We bought tickets in the Ocean Eyre house and land lottery instead Really must check when they draw that.

Bit of Whyalla history in pictures - http://www.giraffian.com/stancartoons

 

[knightm]

Not as good as a few years ago, but there's still lots of room to move up, there's heaps of new mining Stuff going on there.

My last one was in (gulp) Andamooka back in January for this reason. Dont know if it will do what Karratha etc did but if it does it will represent a good chunk of my 5mill down the track.