I think you'll notice that all the people who have achieved what you want to achieve ($1m in net equity) don't really look at it as a goal. Or at least, by the time they're close to it, they no longer think of it as a real goal. I recently hit $1m in loans, and though, 'Is that all?'
Alexlee...I was thinking along those lines too.
I have 1.3million in equity if I include my PPOR. I was looking at what to do next, was that it? and how to create passive income so I could stop working at a job I did not particularly want to do anymore. Have been looking at a few options which include:
1. Buy a small business franchise. The one I was looking at was worth about 400k to purchase, with a return net profit of 100K (with a manager in the shop), 150k (self-managed). Purchase 3 franchises, put 3 managers in them and you should have a relative passive income of $300k a year (tax will have to come out of that). Still not bad for investing 1.2million!
2. Sell all my properties and put it in the bank at 6.5% = $84500 per annum minus tax…for doing nothing! but I would also have to rent or borrow to buy a PPOR!...probably not the best option, but then it depends on you needs?
3. Do nothing, keep the properties going maybe buy more get more debt, work more??? Yes it should in theory all be worth 2.6million in 7-10yrs…then what? Do you just keep working etc etc…That’s 10 years more out of life!
In the end you have to decide how much is enough for the life you want…if living on a beach surfing all day is what you want…then 1.3 million in the bank and living in Thailand would do it nicely! Having a plan to make a million in 3 years is great…then what…3 years more for your 2 million? 9 years more, 20 years more…I guess the question has to be what makes you happy in the end? Having 100million in the bank will not make you happy necessarily if all you want to do is surf…sure it would be great to have etc…but if it took 50 years to achieve then you have wastes surfing time!… I believe someone wiser than me once said something to the effect that…you can’t buy time, not matter how much money you have.
Anyhow, I guess that the plan to have 10,20,30 million or 100 properties is not good enough in the end…you need to plan for what makes you happy after you have achieved some relative comfort in the equity side of life!..I don’t believe equity alone can make you happy.
Just feeling philosophical today…so my 2cents worth…