We've done it!

Congratulations Rixter. You're an inspiration. I've only just started to treat my investments as a business and I'm enjoying the process a whole lot more. I've found if you under-rent a property you begin to hate it and want to sell.
I love your approach to investing.
If you're interested in being a speaker at our monthly Perth Investor Meetings we would love to hear more about your success. Please PM me if you are interested in either attending or would like to do a presentation and I'll give you more details. So far there is about 10 new people from Somersoft attending Feb meeting so it should be fun! Hope to see you there too, Linda
 
to have a trading/investment plan, stick to it, and see it to fruition is the most rewarding thing anyone can do. big congratulations there.

thanks a bunch for sending me here Rick - big help and possibly a (good!) spanner in the works for what was looking like a fairly mundane investment outlook for myself over the next 5 years.

much appreciated :D
 
Rixter said:
To those of you are starting off, may I say dream big, dream long & keep focussed.

Dont let anything or anyone steal your dream/s.

Vision x Decision x Action = Success!

'Visualize' what it is you are wanting to ultimately achieve,

'Decide' the strategy you will utlise to making it happen,

'Actively' pursue and apply or work that strategy.

It's 80% Mindset & 20% applied Strategy.
Click to expand...

I'm inspired!! I am Determined to make it happen.

Love reading these kinds of topics, its very motivational. Keep em coming everyone.

:)
 
Rixter said:
For some one just starting out who has no equity to minimal equity they are purely reliant on cash flow income in order to meet the banks DSR module. Once you have equity your options open up.

You can convert equity to create cash flow for yourself but if you only have limited cash flow when starting out, once it runs out its gone.
Click to expand...

Yeah I see what your saying. I think when I start out next year the first five years (coming in with zero equity) will be the toughest. Thats why my first ip purchase will be so crucial in that I will need to buy well so that I can start building equity... get off to a good start. Serviceability will be the issue to begin with. Once I get over the first hurdle and am able to afford ip2 things will take off.


:)
 
Rixter said:
For some one just starting out who has no equity to minimal equity they are purely reliant on cash flow income in order to meet the banks DSR module. Once you have equity your options open up.

You can convert equity to create cash flow for yourself but if you only have limited cash flow when starting out, once it runs out its gone.
Click to expand...

Yeah I see what your saying. I think when I start out next year the first five years (coming in with zero equity) will be the toughest. Thats why my first ip purchase will be so crucial in that I will need to buy well so that I can start building equity... get off to a good start. Serviceability will be the issue to begin with. Once I get over the first hurdle and am able to afford ip2 things will take off.


:)
 
Thanks a lot guys for the wishes.

Just an update: we have now got the bank to release our PPoR as security from them. The title is now in our hot little hands, unencumbered :) ...tho Im starting to get ichy feet again! ;)

We have also restructured some of our loans and topped up our personal & investment LOC's.
 
Rixter said:
Thanks a lot guys for the wishes.

Just an update: we have now got the bank to release our PPoR as security from them. The title is now in our hot little hands, unencumbered :) ...tho Im starting to get ichy feet again! ;)

We have also restructured some of our loans and topped up our personal & investment LOC's.
Click to expand...

hehe I wander how long that equity will last sitting there without u putting ur fingers in rik?
 
That's great news, Rixter.

I think you are a great example of what can be achieved when one applies focus & discipline to their plan.
 
Just a question, for this strategy to work, are you paying off the house you buy in 1 year??:eek:

Or how do you repay the mortgage if you're earning 250k on each house in 10 years?

A bit new and inexperienced at this kind of stuff, hopefully eventually I'll get a bit more intelligent in the area of IP's.

I apologise if this comment was rude, Etiquette will eventually be learnt!:p
 
Hiya,

Not rude at all mate, and the more questions the better!

Rixter's strategy doesn't revolve around paying down his IP loans every year - quite the opposite, in fact. I am sure that someone smarter than me can link to it, but he has outlined it once or twice in the past on this forum. Maybe it is linked somewhere in the first post of this thread...?

The basic idea is to buy properties, and withdraw more equity each year to pay for his (and his family's, presumably) living costs. So, the loans are never actually paid off at all!

Cheers

James.
 
Youngin said:
Just a question, for this strategy to work, are you paying off the house you buy in 1 year??:eek:

Or how do you repay the mortgage if you're earning 250k on each house in 10 years?

A bit new and inexperienced at this kind of stuff, hopefully eventually I'll get a bit more intelligent in the area of IP's.

I apologise if this comment was rude, Etiquette will eventually be learnt!:p
Click to expand...

Youngin, you never pay any principle off the loans. You are paying interest only. The majority if not all of the interest component is serviced via the 10 years worth of rental income increases along the way -any minimal difference is simply capitalised.

I hope this helps.
 
aaarghhh said:
Hi Rixter

I really really like the LOE strategy.

Have you found the banks are hesitant to fund LOE?

Aaron
Click to expand...

Aaron,

Due to the current world credit squeeze they (the banks & non bank lenders) have tightened their lending criteria however credit is still available - I have just topped up our credit limits.
 
Hi Rixter,

Any updates on the valuation and rents for this property?

Interested to hear how the current credit environment is impacting your plans.

Cheers,
Andrew
 
Andrew which property are you referring to?

Ive recently set up 2 more LOC's topping up our full doc status to 80 lvr .

Looking to purchase two more property in Melbourne with the lazy equity currently sitting in our portfolio.

Now that No/Lo docs have tightened due to GFC I plan to utilise another cash bond structure to extend our full doc lending capabilities to service the leveraging and extending our asset base even further. Nothing like manufacturing serviceability. :)

Our ppor total back yard reno is nearing completion just in time for festive season celebrations too :)
 
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Hi Rixter
I would be very interested to see how your new cashbond structure goes, I am sure many here would also find it valuable now that lo doc is going sour.

Cheers, MTR
 
Congratulations Rixter.
I noticed you joined in 2001, i am not sure if thats when you started your property journey, but its 8 years into your 10 year plan.
 
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