What is your Cash Flow Position of your IPs?

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But residential property is a very long term game, all the 'traditional' books on residential investing talked about the requirement to see through two cycles in order to really reap the benefits. Now assuming each cycle is around 10 years thats a 20 year viewpoint. None of these traditional residential investing books talk about 0-130 properties in 10 minutes. But rather to accumulate slowly as both equity and salary rise. If equity is not rising, then one has to be more patient.

Perhaps I am tainted from my experience watching someone take a very aggressive property acquisition strategy for the last 8 years before their retirement. They are still heavily negatively geared ($45K+ pa) entering that retirement and have barely more equity than what they had in the PPOR with which they first started. They are eternally optimistic that things will pick up on both rent and equity fronts, but I just don't see how their portfolio can be anything other than life force and money draining for the next decade at least.

As you say, a long term outlook is what's required, but unfortunately for them that's time they don't have and ultimately I think it will sink them. I should not let that cloud my judgement of people that have much more realistic time frames.

 

[MIW]

Yes, property is not just 'location' game.

Perhaps I am tainted from my experience watching someone take a very aggressive property acquisition strategy for the last 8 years before their retirement. They are still heavily negatively geared ($45K+ pa) entering that retirement and have barely more equity than what they had in the PPOR with which they first started. They are eternally optimistic that things will pick up on both rent and equity fronts, but I just don't see how their portfolio can be anything other than life force and money draining for the next decade at least.

As you say, a long term outlook is what's required, but unfortunately for them that's time they don't have and ultimately I think it will sink them. I should not let that cloud my judgement of people that have much more realistic time frames.

Every book or article presents generalised overview on property investing. So not all the investors will make the right decisions and their investment strategies may have worked out against them. Education is the Key and being surronded with like minded people, viewing things in positive ways and so on.../B]. There are many strategies and issues when investing and it's a constant learning process too (we learn from our mistakes, at least I hope so).
But history can repeat itself, just compare 1980's to NOW. I attended this seminar and it was invalueable information; about China, our resources boom on economy, demographics, tax changes, market movements and so on. All I'm pointing out is that property investment is not just the 'location' game it's so much deeper than that.
It would suggest to me that your friends invested heavily into an expensive property unless they acquired many at average prices (which I doubt). Also I too have heard of some that lost out but in return heard of many many many more that had been successful. Isn't it pointed out that most top 200 wealthiest people in Australia had some connection with property investment?
After every bust there's a boom (just think it's 1987 stock market crash, world recession, savings - same stage we are now in 2011). It's 1988-1991 property booms and Japan invests - 2012 I see property recovering (booming) and China being the main investor now.
What other choices do your friends have? Stocks (market crash since its high of 6800 to 4250 today), cash at bank (subject to tax and inflation - confiscation of wealth) or property. Well, I chose property at least it's more static, have total control over it and have been learning a lot about it. There are no guaranteed investments but success is persistance and repetition of doing something very well (eg. golf player - hitting a golf ball every day, swimmer - swimming every day, card player - playing every day, and a successful property investor - learing and doing something about it every day too).
I was asked a question today " What do I do everyday to be successful". Well I know what my anser is, what is yours or other property investors out there?