What are some of the "exaggerated stories" you've heard from investors/magazines??

[sash]

Spot on!

From my perspective if you follow the below...you can build a $3-5m portfolio over 10 years and $7-10m portfolio over 20 years.

Even if you did not pay down the loans..you should have about 50% equity. Like you said sell down whe you don't have much of an income. Super can be the icing on the cake.

Unfortunately....many people don't get here because they overestimate what can achieved in 1-2 years but underestimate what can be achieved in 10-15 years.

Too many want to get rich quick!

It seems property investing is the easiest way of wealth creation for the patient and sensible ones. Build a portfolio, hold on to it and pay down debt using the inflation (rents going up). Say a couple buy a 4 or 5 properties and keep them for 25 years. If they are bought with some research and common sense, they will double at least twice in 25 years. Sell one (PPOR to avoid CGT) and move into another one and keep the rest debt-free and live off the rents they give. Any superannuation will be the bonus. Of course this is the laziest way. A bit more aggressive investing will get a bigger portfolio.

 

[china]

Spot on!

From my perspective if you follow the below...you can build a $3-5m portfolio over 10 years and $7-10m portfolio over 20 years.

Even if you did not pay down the loans..you should have about 50% equity. Like you said sell down whe you don't have much of an income. Super can be the icing on the cake.

Unfortunately....many people don't get here because they overestimate what can achieved in 1-2 years but underestimate what can be achieved in 10-15 years.

Too many want to get rich quick!

20 years is a very long time. $7m is massive now but may be insufficient in 20 years time.

 

[Television]

20 years is a very long time. $7m is massive now but may be insufficient in 20 years time.

If $7m is insufficient in 20 years time, you must learn to live simply .

 

[Charlotte30]

Exaggerated stories

20 years is a very long time. $7m is massive now but may be insufficient in 20 years time.

Depends on what the 20 mil is invested in. If it is in property then you have a hedge against inflation along with the income it produces. If it is in cash then the value and spending ability of that money will be seriously eroded.

Cheers

 

[china]

Depends on what the 20 mil is invested in. If it is in property then you have a hedge against inflation along with the income it produces. If it is in cash then the value and spending ability of that money will be seriously eroded.

Cheers

Twenty years ago, the average house price in Sydney was half of what it is now.

SoI suspect that the $7m of 2034 is equivalent of $2.5m of today which may generate a passive income of 75000k p.a. at 3%, hardly a comfortable lifestyle.

 

[geoffw]

China- most of us are looking at having assets which are appreciating in order to give an income.

You are keeping your assets in cash. So the cash buffer you calculate will support you- $4M or so in five year time?- will most certainly not be enough for a retirement which will last.

 

[china]

China- most of us are looking at having assets which are appreciating in order to give an income.

You are keeping your assets in cash. So the cash buffer you calculate will support you- $4M or so in five year time?- will most certainly not be enough for a retirement which will last.

I will intend to distribute the nest egg of $3m into a variety of asset classes shares, ETFs, property and bonds/cash.

 

[wylie]

I will intend to distribute the nest egg of $3m into a variety of asset classes shares, ETFs, property and bonds/cash.

Don't you have around $1M or so in cash right now though? If so, it could be growing in another asset class right now.

 

[china]

Don't you have around $1M or so in cash right now though? If so, it could be growing in another asset class right now.

Given the recent turmoil in my life, I was very pleased to have large cash reserves just sitting in the bank with easy access. Renovating a commercial property, purchasing, legal fees, stamp duties, phones, garbage removal, computer installations felt like a bottomless quagmire which consumed endless large volumes of cash.

This whole saga was unexpected and I am glad that having cash readily available definitely lessened the stress of a very stressful event.

Now there is the staffing crisis which will also consume a lot of cash. External practice management firms will surely cost me an arm and a leg.

When all the dust settles, I will start allocating the cash holdings into different asset classes, if there is any cash left!

 

[Hypnotic Cat]

Reno Funders!



pinkboy

I second that, Reno Funders takes the cake! Nearly blew the CPU on my BS detector

 

[D.T.]

This whole saga was unexpected and I am glad that having cash readily available definitely lessened the stress of a very stressful event.

Businesses hire and fire staff every day of the year, and there's one relocating premise on a daily basis. This is common stuff. We all (employees) move on for one reason or another.

Why on earth would you call this a "saga" or a "turmoil"? I'm guessing you were old and grey by time you finished highschool?

God forbid something real happens in your life.

 

[china]

Businesses hire and fire staff every day of the year, and there's one relocating premise on a daily basis. This is common stuff. We all (employees) move on for one reason or another.

Why on earth would you call this a "saga" or a "turmoil"? I'm guessing you were old and grey by time you finished highschool?

God forbid something real happens in your life.

I appreciate that these events happen but when it happens to me as a micro business owner, I have found that it hits me very hard.

 

[Ed Barton]

Businesses hire and fire staff every day of the year, and there's one relocating premise on a daily basis. This is common stuff. We all (employees) move on for one reason or another.

Why on earth would you call this a "saga" or a "turmoil"? I'm guessing you were old and grey by time you finished highschool?

God forbid something real happens in your life.

But for a business to lose 50% of their employees in one hit is massive. Imagine if it happened to Qantas - 15,000 employees all resign and leave on the same day. The airline would certainly crash (pun intended).

On the other hand a micro business should be able to handle it - the boss/owner should know what every employee does and be able to do their job, even if badly.

I have a similar sized business to China, also with two part time employees. If one, or even both of them left without notice I could carry on. I could do their jobs, not as good or efficiently as them, but I could cope and would actually have to do more than a few hours a day.

 

[geoffw]

Here's one of those exaggerated stories- from Personal Investor magazine, July 2003

 

[sash]

Did oyu know if you have 100k net on retirement you would be in the top 0.5% of all retirees?

Also this on the assumption that you are starting from scratch...but if you did and you were a 30 year old you will probably hit $20m with a net worth of $12-14m by 50 years of age.

Remember that inflation will keep moving up the value of money..so it is important to establish a large asset base early on.

20 years is a very long time. $7m is massive now but may be insufficient in 20 years time.

 

[china]

Here's one of those exaggerated stories- from Personal Investor magazine, July 2003

Nice story Geoff. So where are we in the cycle now - Sydney market?

 

[china]

Did oyu know if you have 100k net on retirement you would be in the top 0.5% of all retirees?

Also this on the assumption that you are starting from scratch...but if you did and you were a 30 year old you will probably hit $20m with a net worth of $12-14m by 50 years of age.

Remember that inflation will keep moving up the value of money..so it is important to establish a large asset base early on.

I am referring to 100k gross p.a. in today's dollars. But it is better to be in the top 0.5% than the bottom 0.5%.

I think if you have a large asset base early on then it is easy all the way because of inflation and compounding of interest/dividends/rent - like a snowball. Money begets money. But the difficulty is how to accumulate large asset base in the first place without waiting decades.

 

[geoffw]

Nice story Geoff. So where are we in the cycle now - Sydney market?

I haven't been keeping much of an eye out- I've been concentrating on my studies- and waiting for some financial stuff to be sorted out first. I'll be starting to look at specifics only when I'm ready to move.

In 2003 I became a little scared that things were at a peak. I missed out on a lot as a result.

 

[china]

I haven't been keeping much of an eye out- I've been concentrating on my studies- and waiting for some financial stuff to be sorted out first. I'll be starting to look at specifics only when I'm ready to move.

In 2003 I became a little scared that things were at a peak. I missed out on a lot as a result.

But the problem is that we can never really tell. Hindsight lets us know that between 2003 and today, the Sydney market has surged a lot. However, in my personal experience, my ppor which I bought in early 2010 remains much the same in value. Whereas in 2011 to 2012, there was a slight sag or pause in prices. So you could argue that I should not have bought ppor in 2010 and continued renting and I could well be ahead.

 

[sash]

China....have you seen the Nike add....just do it!

Focus on researching markets - i.e. Terry Ryder, APM, lots around. The decide on a place which meets your budget. The simply buy one...and then do it again and again. Once you do one..two...three..it gets easier.

Oh....I never used buyers agents...most of them are not much chop....I prefer to do my own research. Most BAs have a vested interest which is their own pocket. Hopefully the few who were hysterical before don't see this. Out of 21 properties...only two have returned less than a 7% per annum returned.

I am referring to 100k gross p.a. in today's dollars. But it is better to be in the top 0.5% than the bottom 0.5%.

I think if you have a large asset base early on then it is easy all the way because of inflation and compounding of interest/dividends/rent - like a snowball. Money begets money. But the difficulty is how to accumulate large asset base in the first place without waiting decades.