$2m in 22 months - Rob's story ..

[Rob Williams]

- adequate insurance cover, not just for buildings/rent, but also for the loan amount.

- stress test repayment cover - e.g. how long can you cover your monthly repayment if cashflow/income is under stress, and your backup plan for it.

Thanks for that. Yes, it's not been high on the agenda. but needs to be bumped up.
Building ins. is covered by the body corp and I have landlord ins. to cover public liability and contents.
I do have a buffer to cover the shortfall if I ever need to, but I didn't want to go into too much detail about my cash position, much of which has come from non property investments (that's a whole other story). I get enough emails from potential Russian Brides already
I've recently setup a SMSF, so life and permanent disability insurance is being looked at now. I get that for free with my current super, but that's about to come to an end.
Good points, both of them as it's this type of detail that can fall through the cracks when you're too busy looking at the big picture.

 

[kissfan]

On ya Rob.

Love your 'go get em' attitude.

Regards
Marty

 

[Rolf Latham]

2 200 k on 50 k PAYG, thats an outstanding ratio

Congrats

ta
rolf

 

[sue78]

Hi Sue. On average, my body corp fees, land tax, rates, SA Water etc. etc. work out to around $2,500 per property.
The CG has been steady, without any spectacular growth. The Leabrook unit was purchased in 2000 for $79k. During the divorce settlement in March 2007 it was valued at around $180k. I've just had it revalued for a refi and it came in at $270k. Now you tell me I'm not getting CG and I should have invested in Brissy? Why didn't someone tell me that earlier

$2.5k is really cheap!! I reckon it's more than double that per unit in Bris.

To be fair though, anything you buy in 2000 will dbl in value, if not more. I bought a townhouse in 2003 for $120k and it is now worth about $350k with rental of about $370p/w and it was really nice too, 3br, 2 bath, grg with internal access, modern etc.

But it's better to stick with local areas you know well.

If you have that much equity and $2mil in debt, seems like you still have about $100k deposit to play with...another IP maybe? hehehe

 

[sparky23]

Good to see you are back, I was wondering where you had got to but you have certainly made up for it with this post!

Congratulations you are doing a fantastic job!

I had gotten us up to around $800k in equity in 5 years but sadly last year did us a fair bit of damage so fingers crossed that I can get us back on track some time soon! Meantime you are definetly going to put us in the shade!

 

[HiEquity]

Hi Rob

An excellent adventure! The achievement for me is you have now got a large exposure to growth assets, which cost you little to hold. Whenever the next boom / steady growth comes it will be happy days and in the meantime you can just get on with your life without a large -ve cashflow to worry about - it's an excellent position to be in and proves it can still be done. Congratulations!

The reason I ask is because for someone on $50k per year to do what you have done is astounding, while for someone on double that or more is way easier.

It's sorta like the guy who caught the 100lb fish; but what breaking-strain line did he use?

Interesting comment Bayview. I guess I view the achievement of a high income as just as noteworthy as a large IP portfolio. I realise it's not a property investment achievement but it usually exhibits similar characteristics. That is, work your butt off at uni / work etc to get a high paying job later for example - delayed gratification and all that.

Of course a high income doesn't correlate that well with high net worth for a bunch of reasons but, as you note, the achievement of a large portfolio of quality assets is much easier and safer with a higher income behind you. For this reason, I strongly suggest to those starting out that getting that higher income is an area to concentrate on as much as any other. And just as laudable when it is achieved... it can really multiply the gains...

 

[sue78]

I grew up in Adelaide and remember very well when prices actually went backwards. We sold our house for even less than what we paid for it and it was very very cheap, what we paid. I think this was about 12 yrs ago.

I do know the Northern suburbs very well, especially the suburbs you mentioned.

It's still very cheap. There's no way you could buy a house in Bris for less than $300k. Parafield and Paralowie are ok surburbs and very affordable.

 

[Rixter]

Rob, congratulations on your mile stones & achievements to date.

A true inspiration to those just starting out and also to those who have been around for while.

I have no doubt what so ever you are destined to more great feats to come.

A real life example of when the student is ready the teacher arrives.

Once again, well done mate - you deserve it!

 

[Rob Williams]

2 200 k on 50 k PAYG, thats an outstanding ratio

Congrats

ta
rolf

Actually, it's a little more than $50k, to be fair. Way less than $100k, though.
Thanks!

 

[Rob Williams]

Good to see you are back, I was wondering where you had got to but you have certainly made up for it with this post!

I knew you would miss me, so I had to come back.
I've been sitting on 999 posts and trying to reno IP #7 and write my story AND dealing with broker, bank and REA trying to get my settlement done in 15 days. Big effort, but got across the line. Just.
Thanks for your support, too!

 

[kum yin lau]

Hi, what's festina lente? Is 22 a fibonacci number?

Ky

 

[lisag]

Thanks Rob,
your given me more fuel for thought. I was just about to become a procrastinator again. I have been thinking to much & putting to much enphasies on choosing the perfect IP. Now becoming to scared to step out. Just waiting for conformation from the bank on final application, open homes tomorrow.
Need to set my goals, what do I want from investing? how long will it take to get there?
Maybe will see you one day for a latte in Adelaide while IP searching
Thanks for the kickalong.
Keep the Dream alive....

 

[firstmillion]

Keep up the good work and keep posting Rob. Very motivating for new beginners like me.

Cheers

 

[buzzlightyear]

Hi, what's festina lente?...

Hasten or hurry slowly

 

[Sheryn]

Having spent 18 years in a marriage in which I was constantly told that I wasn’t “good enough” to manage the finances and that I wasn’t “smart enough” to come up with any good ideas, I knew that this was my time. /QUOTE].


What great motivation...

Henpecked husband for 18 years, you show her Rob!!!


Go for it...


Sheryn

 

[our obsession]

Thanks Rob, for making the time to write your journey up, (and sharing), you are inspirational.

Much appreciated.

Viva La Vida!

 

[Perp]

I'll add to the chorus of thanks and congratulations. Well done, Rob, that's a really great effort.

I particularly agree with what you say about "rules". Everybody's circumstances are so different, that there is no one way to achieve wealth through property. (Almost) every strategy can work, provided it's matched to your own cashflow, abilities, and temperament. Which is great - otherwise we'd all want to buy the same properties!

 

[burty85]

Well done Rob, great post.... may have to PM you some time about a few tips on your reno's.. I myself have just thrown myself in the deep end with signing contracts for both titles of a duplex that needs a bucket load of work... like you said, love the out of your comfort zone feeling, makes you feel alive...


Once again great job,

Best of luck ( not that you need it )

 

[Rob Williams]

Hi, what's festina lente? Is 22 a fibonacci number?

Ky

As Buzzlightyear said "hasten slowly" or "make haste slowly". Interestingly, it was on the old Adelaide Steamship company crest. Back when I was in high school and uni, trading shares, Adsteam was one of my favourite companies and John Spalvins was one of my heros. My uni and school mates were all fans of various footy and cricket stars. I was an odd duck even way back then

 

[oasis1frog]

Thanks for sharing Rob, just wondering what is the portfolio -ve cashflow, if any ?