Are you a property millionaire?

[AdrianAppleyard]

The drive of constant improvement does not mean that it becomes myself vs someone else, or that the motivation is for me to become better than someone else.
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Tip: start your own thread. This has nothing to do with the thread. And "if you was just sayin' ", take it to another thread. The only people who seem to think it has anything to do with competing are the ones claiming that competing is wrong and hell bent on changing the thread into their agenda. Complex maybe?

Just to clarify: This thread is anonymous and it's just to show a snapshot of the posters here. Stop trying to make it something it's not.

 

[Intrinsic_Value]

Most likely timing. I don't think a lot of people who are doing b+h would crack the mill in the last 5 years. Had you started 10 years ago you probably would have done the $1m inside 5 years simply because all markets were firing.

I love these sought of generic posts. Sometimes you just have to look where others are not, or because near term data (ie asset class showing a recent downturn) reduces demand and hence enables buying at more attractive prices.

I bought 5 residential apartments in the city in 2007, on a 20% deposit and on a cash flow neutral basis on 2007 interest rates BEFORE TAX EFFECT.
These have appreciated 40%+ in the last two years.

With the GFC decimating share prices, i dollar averaged into the stock market over the last two years (both downwards and subsequently after march upwards).

Total return on capital over the last two years is approaching 300%.
Total portfolio now generates a positive cash flow of around $120k as well.

It definately can be done, but not if you have a closed mind to start off with.

 

[skater]

So far, this thread tells us that most posters who have been investing for less than 5 years have not got $1m in equity, while most of those that have been in the game for longer than 5 years have more than $1m equity.

I'm not sure how useful this information is, but maybe it would serve as an incentive to someone sitting on the sidelines wondering if it's really worth doing.

 

[Roadrunner]

That's a great observation Skater. It's certainly incentive to keep on keeping on with what we're doing.

 

[Rob Williams]

So far, this thread tells us that most posters who have been investing for less than 5 years have not got $1m in equity, while most of those that have been in the game for longer than 5 years have more than $1m equity.

I'm not sure how useful this information is, but maybe it would serve as an incentive to someone sitting on the sidelines wondering if it's really worth doing.

The next 5 years will pass regardless of what people on the sidelines do. The next 5 years will be the same as the last 5 years, for them, if they do nothing different.
I think this poll shows them that there is potential to generate serious wealth if they make the changes necessary to do so.
To us, this seems so obvious. Yet to most of them, it's not so obvious.

 

[skater]

The next 5 years will pass regardless of what people on the sidelines do. The next 5 years will be the same as the last 5 years, for them, if they do nothing different.
I think this poll shows them that there is potential to generate serious wealth if they make the changes necessary to do so.
To us, this seems so obvious. Yet to most of them, it's not so obvious.

Yes, this is so true.

It's funny really, when you think in terms of wealth. To someone sitting on the sidelines, $1m seems such a large amount, yet to many seasoned investors it is only the starting point. But, consider that even if the only thing you do is gain a net worth of $1m, you are still considerably better off than the average.

 

[bornfree]

I know it may be asking the obvious, so those voted > 1m net worth, did you include your ppor ? Just wondering how I've been doing.

 

[AdrianAppleyard]

I know it may be asking the obvious, so those voted > 1m net worth, did you include your ppor ? Just wondering how I've been doing.

Here is the OP:

A million isn't much these ways but it's a handy start. I just want to get a gauge on what percentage of posters have passed the million mark. This just includes all your properties (inc ppor) total value minus your loan. No other assets included.

 

[agent007]

A million isn't much these ways .

Someone with equity of $1M could be holding at least $2M in debt. If you compound that then, that $1M is something

 

[jingo]

A million isn't much these ways but it's a handy start. I just want to get a gauge on what percentage of posters have passed the million mark. This just includes all your properties (inc ppor) total value minus your loan. No other assets included.

Could be good to clarify how people are arriving at the value of their properties too. Are they their own estimates based on recent sales of similar properties sold in the area, or are they bank valuations?

There can be a world of difference between the two....

Regards Jason.

 

[agent007]

or are they bank valuations?

and if Bank valuations then, which bank and when
I have seen different Banks valuating the same property by $30k difference in a matter of weeks

Seriously, if we have to get that specific in every poll/question/discussion then, we wouldn't have neither the time nor the disposition to question/answer anything. IMO

 

[AdrianAppleyard]

Seriously, if we have to get that specific in every poll/question/discussion then, we wouldn't have neither the time nor the disposition to question/answer anything. IMO

I agree. You can never do a poll that is perfect, includes everything, and allows everyone to be on the same page. I'm a bit surprised at how many people here go against the grain for no good reason. I've also noticed there's a fair few know-alls who frequent SS.

 

[jingo]

and if Bank valuations then, which bank and when
I have seen different Banks valuating the same property by $30k difference in a matter of weeks

Point taken. This is also not a perfect indication. Seeing as many people use their property portfolio to draw out further equity, bank valuations can be a fairly good guide as to what a person's property is worth.

Seriously, if we have to get that specific in every poll/question/discussion then, we wouldn't have neither the time nor the disposition to question/answer anything. IMO

I didn't think it was getting too specific - just validating people's valuation methods. It is a noted fact that most people think their property is worth more than the bank does. The bank's valuation is what counts for many property investors as they rely on the bank to draw out equity and further add to their portfolio. A person's own estimates of value become irrelevant in this case. (unfortunately).

Regards Jason.

 

[steveadl]

I didn't think it was getting too specific - just validating people's valuation methods. It is a noted fact that most people think their property is worth more than the bank does. The bank's valuation is what counts for many property investors as they rely on the bank to draw out equity and further add to their portfolio. A person's own estimates of value become irrelevant in this case. (unfortunately).

Regards Jason.

It's not a bad idea Jason, just not very feasible. I know what my properties are worth, but the last bank valuations I had done were 18+months ago and totally irrelevant now, going by them now would be pointless. Unless people have had all their properties valued very recently by banks valuers, I doubt many could use this method when contributing to discussion.

But that doesn't hide the fact that a number of people need to tone down.

Funny, I was just thinking that after reading your posts.

 

[jingo]

It's not a bad idea Jason, just not very feasible. I know what my properties are worth, but the last bank valuations I had done were 18+months ago and totally irrelevant now, going by them now would be pointless. Unless people have had all their properties valued very recently by banks valuers, I doubt many could use this method when contributing to discussion.

Ok, I should clarify, we have the ability to have our portfolio valued regularly - free of charge (and we do have it re-valued fairly often - at least once a year). We have recent valuations to draw on (ie 1 mth old) for each of our IP's. I shouldn't assume that everyone has this resource.


Regards Jason.