$100,000/pa Passive Income...

[Ace in the Hole]

We are working on this goal right now of 100k passive income.
Have passed the 10 year period by 3 years to qualify for 10 properties in 10 years, but will have 14 in a couple of months time.
Once we do a bit of refinancing, we'll be at the 80k passive level, so still a little way to go.
We recently bought quite an expensive PPOR which will be debt free in a few months, so this really slowed us down a lot as far as cashflow goes.

Goals now are to aggressively pay down debt and sell our small biz in maybe 18 months to reduce or eliminate current property debt.
Goal at that stage is 350k passive or close enough to $1,000/day and optional retirement.

 

[mikezen]

We are working on this goal right now of 100k passive income.
Have passed the 10 year period by 3 years to qualify for 10 properties in 10 years, but will have 14 in a couple of months time.
Once we do a bit of refinancing, we'll be at the 80k passive level, so still a little way to go.
We recently bought quite an expensive PPOR which will be debt free in a few months, so this really slowed us down a lot as far as cashflow goes.

Goals now are to aggressively pay down debt and sell our small biz in maybe 18 months to reduce or eliminate current property debt.
Goal at that stage is 350k passive or close enough to $1,000/day and optional retirement.

Congrats I'm following same suit, I'm interested to know, how many of your ips since u first started buying 10 years ago have doubled in value?

 

[Ace in the Hole]

Congrats I'm following same suit, I'm interested to know, how many of your ips since u first started buying 10 years ago have doubled in value?

Unfortunately none have doubled.
Bought 2 about 5 years ago and the rest have only been accumulated in the past 3 years.
The property we bought 13 years ago was our PPOR, then it took us 8 years to build income levels up to be able to start investing properly.
So portfolio has only grown in value maybe 10% at best on purchase prices.
Hoping we get some good growth in Sydney and Brisbane to bring the values up.

 

[mikezen]

Unfortunately none have doubled.
Bought 2 about 5 years ago and the rest have only been accumulated in the past 3 years.
The property we bought 13 years ago was our PPOR, then it took us 8 years to build income levels up to be able to start investing properly.
So portfolio has only grown in value maybe 10% at best on purchase prices.
Hoping we get some good growth in Sydney and Brisbane to bring the values up.

Sounds like you have done amazing regardless, I look forward to reaching that level eventually, I hope you see some growth soon and enjoy a great retirement !!

 

[Ace in the Hole]

Thanks so much.

There's been a very long period of delayed gratification, but seems to be paying off now.
Finally feel like we got tickets to ride the steep end of the exponential curve.

 

[Bullfrog]

10 in 10

Hi Everyone,
We started in 2005 with our first I.P in Dysart. (Sold it in 2007 for a profit). We now have 5 I.P's with a total rental income of just over $94k. Hoping to get that over he $100k mark if the offer we have on our next one comes off. Still have quite a bit of debt but focused on debt reduction with the view to have them all paid off ASAP. Our goal is $200k of income from our debt free portfolio. Still got a way to go but on track.
Cheers Bullfrog

 

[D.T.]

Hi Everyone,
We started in 2005 with our first I.P in Dysart. (Sold it in 2007 for a profit). We now have 5 I.P's with a total rental income of just over $94k. Hoping to get that over he $100k mark if the offer we have on our next one comes off. Still have quite a bit of debt but focused on debt reduction with the view to have them all paid off ASAP. Our goal is $200k of income from our debt free portfolio. Still got a way to go but on track.
Cheers Bullfrog

Its unusual for someone to want to pay their investments off? (Except via selling down). I'm not saying its right or wrong, just curious what put you on that path?

 

[Aaron Sice]

i would have aimed for $79,500 after deductions.

that way you stay out of the 30% bracket and avoid having to set up a pty ltd.

 

[HotRod]

i would have aimed for $79,500 after deductions.

that way you stay out of the 30% bracket and avoid having to set up a pty ltd.

But that's only 23.3% tax including medicare levy you're paying.

I think the range of $140000 to $145000 you might think that, that's where your tax and levy gets above 30%.

 

[travelbug]

Unfortunately none have doubled.
Bought 2 about 5 years ago and the rest have only been accumulated in the past 3 years.
The property we bought 13 years ago was our PPOR, then it took us 8 years to build income levels up to be able to start investing properly.
So portfolio has only grown in value maybe 10% at best on purchase prices.
Hoping we get some good growth in Sydney and Brisbane to bring the values up.

Hi just wondering if you've not had much growth and only purchased in the last 5 years, where the $80,000 cash flow comes from?

 

[Ace in the Hole]

Hi just wondering if you've not had much growth and only purchased in the last 5 years, where the $80,000 cash flow comes from?

Mostly because we have contributed funds to bring LVR down to moderate levels.
So, not because of high yielding properties.

 

[Brady]

Hi just wondering if you've not had much growth and only purchased in the last 5 years, where the $80,000 cash flow comes from?

I'm guessing combination of deposit, rental growth (and maybe some debt reduction)

 

[Woodley]

How do you get there?

For about 10 years I have been investing in Perth property, predominanatly in the South, South-Eastern suburbs (all free-standing and a recent development of 2 strata).
Here is an overview:
6 investment properties at a value of $3,125,000 and a debt of $2,172,500. They generate an annual income of $154,000 pa
We are 40 and 39 (with no dependants) and are hoping to leave full-time employment within the next 5 years with the aim of retiring fully by 48.
Our PPOR is worth $1,100,000 and we owe $360,000 on this. I've never had trouble getting into the market - I'm just having trouble getting my head around the exit strategy.
Suggestions, recommendations, thoughts, comments ... interested to hear how other people have done it and if what we've done is enough for an early and comfortable retirement.

 

[Rixter]

Suggestions, recommendations, thoughts, comments ... interested to hear how other people have done it and if what we've done is enough for an early and comfortable retirement.

Woodley, you have done very well. This is how we've done it.

 

[MTR]

For about 10 years I have been investing in Perth property, predominanatly in the South, South-Eastern suburbs (all free-standing and a recent development of 2 strata).
Here is an overview:
6 investment properties at a value of $3,125,000 and a debt of $2,172,500. They generate an annual income of $154,000 pa
We are 40 and 39 (with no dependants) and are hoping to leave full-time employment within the next 5 years with the aim of retiring fully by 48.
Our PPOR is worth $1,100,000 and we owe $360,000 on this. I've never had trouble getting into the market - I'm just having trouble getting my head around the exit strategy.
Suggestions, recommendations, thoughts, comments ... interested to hear how other people have done it and if what we've done is enough for an early and comfortable retirement.

Need more information...

So your rental income is $154,000, what's your net income after all outgoings, ie interest, rates etc.

MTR

 

[skater]

Need more information...

So your rental income is $154,000, what's your net income after all outgoings, ie interest, rates etc.

MTR

With a gross income of $154k and a debt of $2.1M, there isn't going to be a lot of cashflow.

 

[MTR]

With a gross income of $154k and a debt of $2.1M, there isn't going to be a lot of cashflow.

Thanks Skater, I am a bit slow this morning, too much stuff going on atm.

 

[handyandy]

With a gross income of $154k and a debt of $2.1M, there isn't going to be a lot of cashflow.

At best neutral at 6% interest and including the PPOR debt. Add the expenses and it could be negative without taking account of depreciation.

 

[Rixter]

At best neutral at 6% interest and including the PPOR debt. Add the expenses and it could be negative without taking account of depreciation.

Ball park add another 1% for expenses above loan interest.

 

[Ace in the Hole]

Isn't it easier to work it out approximately by calculating the equity?

i.e. 6 investment properties at a value of $3,125,000 and a debt of $2,172,500 gives you 1 mil worth of play money.
Which I'd assume would be close to 50k income.