my tip is for a small slow down in march through to may, it will be interesting to see what the end to the FHOG, will bring, this could give some opps in some negotiations with some frst home territory, but we will see , it wouldnt suprise me if the sheer fact we have a housing shortage , drives the market further,
2009 was a good year..where to now?
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I settled on PPOR in 2009, and have just mapped out my IP goals for 2010 and 2011. Basically I'd like to buy 2 properties a year until 2011 while I still have an income, because after that I plan to take time off work to have kids. Will continue buying 1 property a year, hubby and I would like to semi-retire when we are 35 (ie. to have the freedom not to work in a 9-5 job everyday. We love our jobs, and we would love to work a 3 or 4 day work week, but don't want to be forced to work 5 days per week)
Pretty bad year for me personally compared to what could have been, or should of been.
Lost my full time job which would have been no problems because I was going to work security full time, but I was charged with assault at the same time so I had my license suspended.. Pulled the pin on IP#2 and didn't work for 6 months at all, health issues stopped me.
The year has been about surviving for me more than anything and trying to build the momentum that I had back up for next year.
I've churned over $110k on fights this year for 18% ROI. A new betting clause and tighter approach should see me increase my ROI next year to well over 20% and I should churn at least twice as much money as this year
I did manage to relocate from Mount Isa to Sydney which was sooner than I expected, I didn't think I'd be able to do it until next year, so I'm happy about that.
I'm ready to buy IP#2, just need to get another full time job and I'm golden.
Lost my full time job which would have been no problems because I was going to work security full time, but I was charged with assault at the same time so I had my license suspended.. Pulled the pin on IP#2 and didn't work for 6 months at all, health issues stopped me.
The year has been about surviving for me more than anything and trying to build the momentum that I had back up for next year.
I've churned over $110k on fights this year for 18% ROI. A new betting clause and tighter approach should see me increase my ROI next year to well over 20% and I should churn at least twice as much money as this year
I did manage to relocate from Mount Isa to Sydney which was sooner than I expected, I didn't think I'd be able to do it until next year, so I'm happy about that.
I'm ready to buy IP#2, just need to get another full time job and I'm golden.
Like any year has its ups and downs, 2009 had this aswell.
Had some personal issues, some highs and some lows. Being a property forum I will talk about my investing experiences.
Reflecting on the year that was, it was as per everyother year, a great year. Learnt more, grew more, archived more, accumulated more, enjoyed more.
I purchased 10 more buy and hold properties this year. Along with doing some good buy reno resells. Market moved with prices and rents, therefore adding cashflow and net worth.
What does next year involve?
I havent locked this one in, however am working with the following minimum standards; 10 flips, 10 more buy and hold properties, increase all rents up by 10% (think about each 10% increase when you have multiple property portfolio......), have book published, my website refined with videos uploaded etc.
This year I have networked with a lot more people within the marketplace which was great.
in 2010 I expect to have the same growth personally as I archived this year + some more. Also I need to work on a few other angles of my life to make things simpler, and allocate more time for myself.
Had some personal issues, some highs and some lows. Being a property forum I will talk about my investing experiences.
Reflecting on the year that was, it was as per everyother year, a great year. Learnt more, grew more, archived more, accumulated more, enjoyed more.
I purchased 10 more buy and hold properties this year. Along with doing some good buy reno resells. Market moved with prices and rents, therefore adding cashflow and net worth.
What does next year involve?
I havent locked this one in, however am working with the following minimum standards; 10 flips, 10 more buy and hold properties, increase all rents up by 10% (think about each 10% increase when you have multiple property portfolio......), have book published, my website refined with videos uploaded etc.
This year I have networked with a lot more people within the marketplace which was great.
in 2010 I expect to have the same growth personally as I archived this year + some more. Also I need to work on a few other angles of my life to make things simpler, and allocate more time for myself.
2009 for us will go down as the year that we bit the bullet, took the plunge, all those other cliches, and decided to do something about this idea of getting into PI. So, aiming to have 1 by the end of the year (longest journey, a single step, all that stuff ... more cliches). Looking for a second after the end of the 2009-2010 financial year when we hopefully have another, more favourable, tax return under the belt. That'd be two next year. OOOH!
Congratulations Nathan, that's a great achievement.
All the best for next year.
Cheers,
Just as i thought this year would go by and not all that much would happen I came across the deal of the decade.
Outlay 500k, 25% ebit, with increases & much potential for CG with the gov throwing in a little contribution as well.
And I can say not a dollar of cash down as it was all from a LOC.
Maybe I can now go on the circuit and charge $10k appearance fee at those get rich qwik seminars. I can think up some great headlines out of this one.
Remember, just like when playing monopoly when your have a few houses you need to start looking at hotels.
Outlay 500k, 25% ebit, with increases & much potential for CG with the gov throwing in a little contribution as well.
And I can say not a dollar of cash down as it was all from a LOC.
Maybe I can now go on the circuit and charge $10k appearance fee at those get rich qwik seminars. I can think up some great headlines out of this one.
Remember, just like when playing monopoly when your have a few houses you need to start looking at hotels.
oooo piston ... you've whetted the appetite. please explain more if you can, or feel comfortable doing so.
did the property cost $500k, or was that what you put in via loc? what is an ebit? why is the gov throwing in on this deal? is it low income single studio motel housing or mobile home park?
actually - that's got the thought process going a bit ...
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Earnings Before Tax and Interest.
Cant be too specific on a public forum, gotta protect the guilty.
It's a hybrid type deal of commercial deal not directly buying assets but the entity holding them.
500K is what I had to put in. There's is no bank val as the LOC was on another property. But there is some debt there as well ~300k. But my personal ebit on my investment is still 25%.
Nah definetly not motels.
I've actually watched this for the last 2-3 years, as it was a typical case of earnings not mattering if your appetite for debt is too big, as the end result will always be the same: bust.
Cant be too specific on a public forum, gotta protect the guilty.
It's a hybrid type deal of commercial deal not directly buying assets but the entity holding them.
500K is what I had to put in. There's is no bank val as the LOC was on another property. But there is some debt there as well ~300k. But my personal ebit on my investment is still 25%.
Nah definetly not motels.
I've actually watched this for the last 2-3 years, as it was a typical case of earnings not mattering if your appetite for debt is too big, as the end result will always be the same: bust.
A good year here. Bought shares (with both mine and the banks money) every month, reduced some PPOR debt and bought a block of 3 2BR units.
I've now got enough IPs (7) to get to my retirement goal in about 12 years, and am still accumulating shares. As long as we don't have any major hassles in the next 12 months, I should achieve my goal of having a net position of $1M by my 35th birthday.
The aim for the next 2 years is to get my PPOR paid off completely, and keep buying shares. Once I've done that I'll start paying extra off my investment loans to reduce my future interest costs. I probably won't buy any more IPs for another 3-4 years.
I've now got enough IPs (7) to get to my retirement goal in about 12 years, and am still accumulating shares. As long as we don't have any major hassles in the next 12 months, I should achieve my goal of having a net position of $1M by my 35th birthday.
The aim for the next 2 years is to get my PPOR paid off completely, and keep buying shares. Once I've done that I'll start paying extra off my investment loans to reduce my future interest costs. I probably won't buy any more IPs for another 3-4 years.
Just curious. How do you plan to go from where you are now to retirement in 12 years? Planning to pay down debt after 12 or live of equity?
Cheers.
Investing during periods of heightened fear is always a historically proven method to 'turbo charge' returns., but you have to be able to hold your ground during the turbulence.
The last two years have been a real game changer for myself.
Approx $800k of capital has been converted into around $2.3 million in just under 2 years.
More importantly cash flow on the investments has gone from negligable to around $100k p.a positive.
My goal now is to consolidate and reduce debt on my terms.
The last two years have been a real game changer for myself.
Approx $800k of capital has been converted into around $2.3 million in just under 2 years.
More importantly cash flow on the investments has gone from negligable to around $100k p.a positive.
My goal now is to consolidate and reduce debt on my terms.
My hope is that the property I currently own will double in terms of both capital value and rent return over the next 12 or so years, leaving me with a $4.5M property portfolio. Add to this a shares portfolio of (at current contribution rate) about a million $. This gives me about $5.5M income producing equity, which I hope will return about 5%, meaning a $ return of around $275,000 pa. Of course, there will be some costs to consider, and some tax to pay, although tax planning will help, as will some franking credits from the shares portfolio.
Once I've paid off my PPOR (in about 2 years), I will have around $1.7M in deductible debt, and about 10 years before planned retirement. I am fortunate to have a very good income, and should be able to pay this down by several thousand $ per month, plus whatever extra is left from my positive cashflow properties (which will increase over the years). This approach should allow me to reduce the debt by at least half over the 10 year period. In addition, I will probably find a couple of growth oriented properties in a few years that I can hold for 6-10 years, which can be sold with the objective of reducing this debt further.
I have also has the idea of shifting equity from property into shares by borrowing against existing properties again to add to the shares portfolio, and using rental income to pay back the loans. Well chosen shares (at the right time) should return a little better than property rents anyway, and add to the overall portfolio going forward.
Of course, despite having a goal of retiring in 12 years, this can be moved around a bit if need be. I chose that timeframe basically because my son will finish year 12 that year. I realise, of course, that the plan is a little fluffy, and will likely be tweaked and altered as time goes by. I must admit I'm not particularly comfortable with LOE in retirement, and am hoping to get by without doing so, although I will try to keep an open mind about it. Ideally, I'd like to have no debt at all by age 60. I am now 34.
Any thoughts on how to improve the plan are very welcome!
I like your plan. I have a similar, but not quite the same, strategy in process.
Because of my age and desire to be financially free within a year or so (at most), I have to compress the timeframe somewhat and will have a different outcome.
The fact that you have a plan at all puts you in the top 5% of the population. The fact that you are executing and keeping an open mind to course correction along the way is awesome.
Thanks for sharing!
Sounds like a great plan to me!
Just be prepared for a bumpy ride on them shares.
My only suggestion would be to include your lifestyle (enjoying the fruits of your labour along the way) in your plan.
Don't just have a plan that goes "I will save pay off and one day have no debt", because most of us dunno when that "one day" may be.
Great advice, and I agree completely.
As for the shares, the bumpy ride has already begun, with two margin calls over the past 14 months, and they were only a few months apart. Fortunately, by managing risk I was easily able to transfer some $ across and did not get sold down, and indeed continuing investing during the whole thing. The same shares portfolio is now up almost 60% on where it was in March, not including dividends (which get automatically reinvested).
As for lifestyle, I am very fortunate to have a well paying job. On top of all this investing, we live pretty comfortably, including a nice PPOR, 2 late model cars, regular outings, and overseas holidays most years. We don't tend to buy expensive branded luxury items, though.
Realistically, we are pretty comfortable, which is why I want to take advantage of the good times in every way I can.
