there is no place for sensible discussion here, pls go away David.
At what age do you plan to be financially free?
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there is no place for sensible discussion here, pls go away David.
Haha then you obviously don't know a lot of people.
People like Steve Jobs already invented Apple at 27. If you're only on $350k at 27, you probably will never get to the likes of Gates etc.
Agreed. Simply pointing out a fact that 5% ROI is crap. Thus my next example.
Chucking granny flats on is not passive.
$2600/week after expenses on unencumbered properties would be pretty close to a $100k passive income.
The point I was TRYING to make was "CHINA, STOP PROCRASTINATING AND DO SOMETHING".
Well... to save that much you are doing something, perhaps try doing something else. It's been like a year. I genuinly want you to do well, but you have change, otherwise you will keep getting what you're getting.
Some are self made, some are a bit of start up money and then grown, some are inheritance.
In terms of self-made, I'd classify myself and another friend as one. That said, we've had the benefit of living at home, eating out of our parents' hands etc (me more so, my friend less so as he moved out very early on at 18 years old as he got a scholarship to live for free at the university's boarding school for a number of years. He's at the $300k+ range now on passive). But we haven't actually received any seed capital.
In terms of start up money, I know one guy who did options trading - got around $2m from his parents (I know, a lot) but he used his own skill to turn it in to probably $25m in around 2 years (also 27). He has since paid back his parents the $2m.
Another guy I know raised $10m from his uncle and his friends at around 24 so you could argue he's got backing. But he's simply a fund manager so in one sense I'd argue that's self-made - ie it's his spirit and effort that convinced the third parties to give him money to manage (this one's 26, turning 27 later this year).
Also personally know a fair few guy who's earning $500k+ at around 28/29 (and 2 who even earn $1m+), but they work in a job so that's different.
Interestingly, not many of them are in to property.
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Just chuck more granny flats out the back and pray the renters of the granny flats don't start thinking smarter with these current rates, there will be a time when those granny flats become vacant.
For china, if you really do have that much cash in your bank good on you but you can do much bigger things than wasting your time buying a run down house in the wild wild west and slapping a granny flat on it.
For china, if you really do have that much cash in your bank good on you but you can do much bigger things than wasting your time buying a run down house in the wild wild west and slapping a granny flat on it.
I think my husband will be about 50 when he retires. He became really disinterested in becoming financially free but he seems a bit motivated again. I really get what RK says about hanging around people who influence you. I don't want to purchase anymore property to hold, but will probably still purchase to hold short-term, and buy shares and pay down mortgages with profits.
I'm a Westie from Housing Commission background (Now living it up in Sydney CBD working from home and travelling overseas often)
Just turned 29, Started at 22. Folio 1.6million+, Debt <1.2mill current positive cashflow after all expenses approx $400+per week. A long time ago the Goal was 30.. but happy to ride the gravy train with work/life balance servicing the debt until it feels the right moment to let go. If I rent my current Master Room in city out I can live overseas on about $800pw (Though I would like a passive 800-1000pw whilst keeping my PPOR empty.)
Be nice to look back on this thread in 3-10yrs time and see all the posters achieving their goals.
Just turned 29, Started at 22. Folio 1.6million+, Debt <1.2mill current positive cashflow after all expenses approx $400+per week. A long time ago the Goal was 30.. but happy to ride the gravy train with work/life balance servicing the debt until it feels the right moment to let go. If I rent my current Master Room in city out I can live overseas on about $800pw (Though I would like a passive 800-1000pw whilst keeping my PPOR empty.)
Be nice to look back on this thread in 3-10yrs time and see all the posters achieving their goals.
Delt, these guys are incredible - I think your social circle must consist of some very elite 27 year olds.
I have often been criticised on this forum regarding having high cash levels in the bank which is actually not unusual in my personal network.
Anyway, I am in the process of trying to utilise the cash more effectively (commercial IP, indexed funds, direct shares, etc) to create more passive income than the 4.25% that I am getting from netbank saver. However, I am not optimistic of reaching 200k purely passive income let alone the 350k that you have achieved at age 27.
perhaps not
middle range unsecured personal loans run 10 to 15 % , cards and allied Locs run + 20, with a few almost getting to 30 at 29.99,
ta
rolf
It is done more often than you think, but the returns are a lot more than 20%.
What kind of interest rates dop you think are charged for borrowing on short term money markets?
If a company needs $50 million to close an aquisition then paying 20% for a month or so is well worth the interest rate.
And you know this because of all the IP's, developments, options trading and the like that you've done?
True, but we aren't using 20% in the context of doodad purchases.
For someone like yourself, you could use say; your cash reserves to fund 10% of your first IP, and borrow the rest.
Let's say it is $25k of your cash, and over the year it returns you a nett $5k after all tax returns and cap growth are considered.
There's your 20% return on investment of $25k cash..
I know you will come back with.....
"But you can't get a $5k return on a property bought for only $200k (plus purchase costs of approx 5%)"
There are loads of folk here who can, have, and are.
Here's one of mine for an easy one; $105k purchase price plus costs (approx $115k all up). Used only equity for the whole purchase. Rents for $350 p/w now (not initially though).
And it's not an exotic or risky type of marginal investment; just yer standard 2x1 SLUG unit in a block of 4.
Work out the ROI on that one.
So you are saying that you are getting an infinite return because you have not put any money up front.
You are also saying that your holding costs (interest only payments + strata + agents fees) e.g. 7% of 115k per year come to about $8050 per year and your rental return is 18200 putting 10k in your pocket each year pre tax.
So if you manage to find ten of these, then you will have 100k passive income per year with no money upfront but your PPOR and the entire empire on the line if there is no rent and no income to hold the costs at bay. So this arrangement still does not allow immediate retirement from an income producing job, just in case rent stops on five properties at one point in time. Presumably, you need to keep working until the equity drawn from ppor and the prinicipal on some of these IPs have been paid back.
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